Black Immigrant Daily News
Democrats in Congress released six years of former President Donald Trump’s tax returns on Friday, the culmination of a yearslong effort to learn more about the finances of a onetime business mogul who broke decades of political precedent when he refused to voluntarily release the information as he sought the White House.
The returns, which include redactions of some personal sensitive information such as Social Security and bank account numbers, are from 2015 to 2020. They span nearly 6,000 pages, including more than 2,700 pages of individual returns from Trump and his wife, Melania, and more than 3,000 pages in returns for Trump’s business entities.
Their release follows a party-line vote in the House Ways and Means Committee last week to make the returns public. Committee Democrats argued that transparency and the rule of law were at stake, while Republicans countered that the release would set a dangerous precedent undermining privacy protections.
Trump did not release his returns when he ran for president, a major break in practice, and had waged a legal battle to keep them secret while he was in the White House. But the Supreme Court refused last month to keep the Treasury Department from turning them over to the tax-writing Ways and Means Committee.
“The Democrats should have never done it, the Supreme Court should have never approved it, and it’s going to lead to horrible things for so many people,” Trump said in a statement Friday. “The radical, left Democrats have weaponised everything, but remember, that is a dangerous two-way street!”
He said the returns “once again show how proudly successful I have been and how I have been able to use depreciation and various other tax deductions as an incentive for creating thousands of jobs and magnificent structures and enterprises”.
The returns underscore how Trump used tax law to minimise his liability.
A report by Congress’ nonpartisan Joint Committee on Taxation released last week showed Trump paid $641,931 in federal income taxes in 2015, the year he began his campaign for president. He went on to pay $750 in 2016 and 2017, nearly $1 million in 2018, $133,445 in 2019 and nothing in 2020.
For 2020, the filings released Friday show, more than 150 of Trump’s business entities listed negative qualified business income, which the IRS defines as “the net amount of qualified items of income, gain, deduction and loss from any qualified trade or business”. In total for that tax year, combined with nearly $9 million in carryforward loss from previous years, Trump’s qualified losses amounted to more than $58 million for the final year of his term in office.
The release, just days before Trump’s fellow Republicans retake control of the House from the Democrats, provide the most detailed picture to date Trump’s finances, which have been shrouded in mystery and intrigue since his days as an up-and-coming Manhattan real estate developer in the 1980s.
The disclosures, which focus on Trump’s time in office and include foreign tax credits and charitable contributions, come a month after Trump launched another campaign for the White House in 2024.
The tax returns show that Trump claimed foreign tax credits for taxes he paid on various business ventures around the world, including licensing arrangements for use of his name on development projects and his golf courses in Scotland and Ireland.
Trump, known for building skyscrapers and hosting a reality TV show before winning the White House, did give some limited details about his holdings and income on mandatory disclosure forms. He has promoted his wealth in the annual financial statements he provides to banks to secure loans and to financial magazines to justify his place on rankings of the world’s billionaires.
Trump’s longtime accounting firm has since disavowed the statements, and New York Attorney General Letitia James has filed a lawsuit alleging Trump and his Trump Organization inflated asset values on the statements as part of a yearslong fraud. Trump and his company have denied wrongdoing.
In October 2018, The New York Times published a Pulitzer Prize-winning series based on leaked tax records that showed that Trump received a modern-day equivalent of at least $413 million from his father’s real estate holdings, with much of that money coming from what the Times called “tax dodges” in the 1990s.
A second series in 2020 showed that Trump paid just $750 in federal income taxes in 2017 and 2018, as well as no income taxes at all in 10 of the past 15 years because he generally lost more money than he made.
In its report last week, the Ways and Means Committee indicated the Trump administration may have disregarded a post-Watergate requirement mandating audits of a president’s tax filings.
The IRS only began to audit Trump’s 2016 tax filings on April 3, 2019 — more than two years into his presidency — when the committee chairman, Representative Richard Neal, (Democrat of Massachusetts) asked the agency for information related to the tax returns.
By comparison, there were audits of President Joe Biden for the 2020 and 2021 tax years, said Andrew Bates, a White House spokesperson. A spokesperson for former President Barack Obama said Obama was audited in each of his eight years in office.
The Joint Committee on Taxation report last week raised multiple red flags about aspects of Trump’s tax filings, including his carryover losses, deductions tied to conservation and charitable donations, and loans to his children that could be taxable gifts.
The House passed a bill in response that would require audits of any president’s income tax filings. Republicans strongly opposed the legislation, raising concerns that a law requiring audits would infringe on taxpayer privacy and could lead to audits being weaponised for political gain.
The measure, approved mostly along party lines, has little chance of becoming law anytime soon with a new Republican-led House being sworn in in January. Rather, it is seen as a starting point for future efforts to bolster oversight of the presidency.
Republicans have argued that Democrats will regret the move once Republicans take power next week, and they warn that the committee’s new GOP chair will be under pressure to seek and make public the tax returns of other prominent people.
Representative Don Beyer, chairman of the Joint Economic Committee and a Ways and Means Committee member, presided over the routine pro forma session in the House as the tax returns were released. Beyer (Democrat of Virginia) said the release was delayed as committee staff worked to redact personal and identifying information, a promise Democrats made to Republicans during a closed meeting last week.
“We’ve been trying to be very careful to make sure that we weren’t ‘weaponising’ the IRS returns,” he said.
Every president and major-party candidate since Richard Nixon has voluntarily made at least summaries of their tax information available to the public. Trump bucked that trend as a candidate and as president, repeatedly asserting that his taxes were “under audit” and couldn’t be released.
Trump’s lawyers were repeatedly denied in their quest to keep his tax returns from the House committee. A three-judge federal appeals court panel in August upheld a lower-court ruling granting the committee access.
Trump’s lawyers also tried and failed to block the Manhattan district attorney’s office from getting Trump’s tax records as part of its investigation into his business practices, losing twice in the Supreme Court.
Trump’s longtime accountant, Donald Bender, testified at the Trump Organisation’s recent Manhattan criminal trial that Trump reported losses on his tax returns every year for a decade, including nearly $700 million in 2009 and $200 million in 2010.
Bender, a partner at Mazars USA LLP who spent years preparing Trump’s personal tax returns, said Trump’s reported losses from 2009 to 2018 included net operating losses from some of the many businesses he owns through the Trump Organisation.
The Trump Organisation was convicted earlier this month on tax fraud charges for helping some executives dodge taxes on company-paid perks such as apartments and luxury cars.
By MICHAEL R SISAK and JILL COLVIN. Associated Press writers Paul Wiseman and Farnoush Amiri in Washington and Meg Kinnard in Columbia, South Carolina, contributed to this report.