Trump and the truth about taxes

daryanblog

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Some details of Trump’s tax returns leaked recently, which seemed to suggest that he hasn’t paid any taxes for ten years due to the fact he’s lost over a billion dollars over that period. So doesn’t look like he’s such a great businessman then. Trump (America’s court jester in chief) then preposterously claimed that this was a deliberate strategy to avoid payment of taxes (essentially all but admitting to tax fraud). However it does highlight a number of important issues with regard to tax and the wealthy.

Firstly it shows that most Americans, in particular republicans, don’t understand how marginal tax rates work. That even if the 70% Alexandria Ocasio-Cortez proposes was applied, it would only apply to top earners and only the portion of their income in the tens of millions. In truth they’d be paying closer to 20-35% on their overall income, particularly when you consider…

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About daryan12

Engineer, expertise: Energy, Sustainablity, Computer Aided Engineering, Renewables technology
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2 Responses to Trump and the truth about taxes

  1. stock says:

    Justifying a 70% tax rate because it would “end up being 25% to 30%” is very disingenious.

    It would end up being 10% because it would be worth moving income and profit to another country, or hiding it, or employing other strategies. Taxes based upon consumption, with exemptions for the first 30k per year, make much more sense.

    • daryan12 says:

      Disingenuous? You do understand marginal tax rates? I do post links and give examples.

      Move the money, where? To some offshore tax haven….which would technically be illegal and with the right laws (the sort the EU is cooking up) would have you in a cell wearing a number. Move the money to some tinpot dictatorship? Yep, that’ll work…until he’s overthrown, or just starts stealing from dumb rich people. Then what are you going to do?

      I do talk about the idea of taxing consumption, like I said in the article taxing as many things as possible, particularly those that can’t easily be avoided, is a better strategy. But again, this requires good international co-operation.

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