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Originally Posted by CorsiHockeyLeague
Obviously it's not that simple but it's probably some version of this; he's talking about gross income and net is much
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Re the tax question. I'm amazed that he admitted to this and called it good business. Doesn't that undermine his supposed populist message?
Anyway, people don't fully realize to what degree the US is a huge tax shelter for the wealthy. I doubt Trump paid literally $0 in taxes but I'm sure it's very little. My dad moved to the states after he sold his business and pays an embarrassingly small amount of tax despite making 7 figures / year from investment income. I mean he pays less than I do here and I make your typical CP income.
There are many ways this happens.
- As mentioned above, he's almost certainly talking about his gross income from his worldwide business. If gross income is 700, net income is probably 50-100.
- Layers of various businesses with offsetting gains and losses (especially in real estate).
- Negotiating favorable tax breaks on local municipal levels for developments.
- Much of one's lifestyle could be paid for through their businesses (favorable tax rates).
- Much of one's lifestyle could be paid for through a private foundation (no tax).
- Several states have no income tax.
- Investment income from muni bonds and t-bills is non taxable.
- investment income can be hidden tax-free inside annuity and life insurance products.
- Foreign income can be offset with foreign tax credits.
I'm sure there is lots more.