SHIFT Daily News

News

Trump Should Never Release His Tax Returns

Trump Should Never Release His Tax Returns
June 14
11:44 2017

The Democrats seem to not want to relent on the desire to see President Trump’s tax returns. They will tell you it is all about good government or that it is tradition. We need open government. They think Mr. Trump is hiding something. I am advising him now he should just come out and say he isn’t turning them over – deal with it. Let me explain why.

The biggest reason is that his tax returns are so complex that very few people could ever understand them. They are most likely littered with hundreds of entities that flow through to his return. He may be the owner of some regular corporations that don’t even appear on his personal tax return that are only taxed at the corporate level. If he owns many partnerships, Limited Liability Companies (LLC) and Chapter S Corporations — where these entities have their income taxed on an individual’s tax return — one cannot tell anything from his personal tax return about these entities other than Trump’s share of income or losses. You can’t tell how much he owns, how much he invested, how much they are worth, what tax treatments have been used or who else owns the company with Mr. Trump.

But the press and his enemies would act is if they do understand. I assert they are next to clueless. When working on writing this column I wanted to find some examples, which are ubiquitous, and it did not take very long. That is because Mr. Trump released the beginnings of his tax plan and the anti-Trump press took a nanosecond to attack.

Catherine Rampell, syndicated Washington Post columnist, was formerly an economics journalist for the New York Times. She is a Phi Beta Kappa graduate of Princeton. I am not sure whether she chose to write the column that was published on Friday, April 28 entitled “The Dumbest Part of Trump’s Dumb Tax Plan” or whether she was assigned to write on the topic, but I can tell you she should not be calling anyone dumb.

She wrote about Trump’s proposal to have income from pass-through entities taxed at 15% on a person’s tax return. She goes on to write “For those unfamiliar, pass-through income refers to business income that gets paid at individual income tax rates rather than corporate ones. Income earned by partnerships, sole proprietorships and S-corporations — the vast majority of all companies — falls into this category.”

First, sole proprietorships, which according to the IRS are the most prevalent form of business entities in the U.S., are NOT pass-through entities and would not be affected by this plan. Second, partnerships which have been around forever have never been taxed at anything other than individual rates; thus, saying they are not taxed at corporate rates is like saying pistachio ice cream does not taste like chocolate ice cream. It is wrong and a misnomer. Third, she leaves out LLCs which have become the most prevalent form of pass-through entity, though the newest on the tax scene.

248 total views, 1 views today

About Author

Shift Daily News

Shift Daily News

Related Articles

[^@s]
[^@s]
[^.@s]
[^.@s]
[^@s^.]
[^@s^.]