It came to light this weekend, after some of GOP presidential nominee Donald Trump’s older tax returns were released by the New York Times, that in 1995 he lost $915 million. According to that same article a loss of that scale could have qualified him to escape paying income taxes for 18 years.
Kurt Eichenwald, of Newsweek, says that even though Donald Trump and his many surrogates are doing their best to convince the public that his aversion to paying his income taxes qualifies him as superior in intelligence, this isn’t a new game to him. Eichenwald points out that documents prove the GOP nominee had to be bailed out by his father as well, prior to 1980. Fred Trump opened a $35 million credit line at Chase Manhattan Bank for his son, Donald Trump, to use.
Republican presidential nominee Donald Trump applied for a gaming license in 1980, according to files from Division of Gaming Enforcement for the New Jersey Department of Law and Public Safety, and this eventually led to an investigation into Trump’s background.
What the documents uncovered by Newsweek showed is that Republican presidential nominee Donald Trump has experienced not one or two, but several financial setbacks working as a real estate developer in the 1970’s that resulted in him asking his extremely successful father for some monetary help. The help Fred Trump provided was a $38 million credit it line with Chase Manhattan Bank. Donald Trump maxed out that credit line pretty quickly.
The Newsweek article reports:
‘A number of Trump’s New York retail properties – on Third Avenue, Fifth Avenue, East 56th Street, East 57th Street, East 61st Street, and East 67th Street – all were financial flops; Trump was forced to pay his own money for the operations of the properties because rental income failed to cover the cost. Partnership investments – Part Briar Associates, Regency Lexington Partners and 220 Prospect Street Company – contributed even more red ink. The interest owed to Chase Manhattan on Trump’s massive use of his credit line topped off the dismal financial performance.’
Even more damning, the Newsweek article shows that Donald Trump continued spending as freely as ever while showing minimal income.
‘Unsurprisingly, given Trump’s bad business decisions, Donald’s taxes for 1978 showed personal losses of $406,379 – that’s $1.5 million in present-day dollars – according to the information filed to the casino regulator. (The filing does not show full tax returns, but does include figures for personal income/loss and the amount of tax paid.) Things grew worse in 1979, when he reported an income of negative $3.4 million, or $11.2 million in constant dollars. Trump did not have millions of dollars set aside to deal with these financial catastrophes. His banking records showed he had an average annual balance in his Chase Manhattan savings account of $378,000 – a large amount to be sure, but not nearly enough to cover his 1978 losses. His checking account at the same bank had an average annual balance of $22,500; in accounts at two other banks Trump had total savings of $14,000. Other than family trusts, that was it.
‘Moreover, the tax records show that even in the years leading up to Trump’s first big losses, Trump’s personal income failed to rise above the level of comparatively minuscule. He reported $76,210 in income to the Internal Revenue Service for 1975; $25,594 in 1976; and $118,530 in 1977. In other words, his losses in 1978 alone totaled almost twice his combined income from 1975 through 1977. His 1979 losses were 15 times his combined income for those three years.’
This guy, a former reality star turned Republican presidential nominee, gets shadier by the day. Considering his history, and just what’s been exposed about his business dealings since his presidential campaign began, we can only imagine what will be revealed in the future. Running for president of a country you’re proud of not paying taxes in is without a doubt the dumbest thing Donald Trump has done. As past failures continue to be exposed his campaign will most likely continue to insist, bold-faced, that those who criticize Trump are merely “haters.”
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