Why are liberals angry at Trump for using a tax loophole that was signed into law by Obama?

Drop Dead Fred

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As a Libertarian, I’m against tax loopholes. I want the tax code to be as simple as possible, and with marginal tax rates as low as possible.

Democrats prefer higher marginal tax rates, so they can claim that they want to “soak the rich.”

But at the same time, these Democrats also favor giving rich people all sorts of loopholes, writeoffs, and deductions, so they don’t actually have to pay those taxes.

And now, liberals are angry at Trump for using a tax loophole that was signed into law by Obama.

The New York Times just reported:


Mr. Trump harvested that refund bonanza by declaring huge business losses — a total of $1.4 billion from his core businesses for 2008 and 2009 — that tax laws had prevented him from using in prior years.

But to turn that long arc of failure into a giant refund check, he relied on some deft accounting footwork and an unwitting gift from an unlikely source — Mr. Obama.

Business losses can work like a tax-avoidance coupon: A dollar lost on one business reduces a dollar of taxable income from elsewhere. The types and amounts of income that can be used in a given year vary, depending on an owner’s tax status. But some losses can be saved for later use, or even used to request a refund on taxes paid in a prior year.

Until 2009, those coupons could be used to wipe away taxes going back only two years. But that November, the window was more than doubled by a little-noticed provision in a bill Mr. Obama signed as part of the Great Recession recovery effort. Now business owners could request full refunds of taxes paid in the prior four years, and 50 percent of those from the year before that.

Mr. Trump had paid no income taxes in 2008. But the change meant that when he filed his taxes for 2009, he could seek a refund of not just the $13.3 million he had paid in 2007, but also the combined $56.9 million paid in 2005 and 2006, when “The Apprentice” created what was likely the biggest income tax bite of his life.

The records reviewed by The Times indicate that Mr. Trump filed for the first of several tranches of his refund several weeks later, in January 2010. That set off what tax professionals refer to as a “quickie refund,” a check processed in 90 days on a tentative basis, pending an audit by the I.R.S.

His total federal income tax refund would eventually grow to $70.1 million, plus $2,733,184 in interest. He also received $21.2 million in state and local refunds, which often piggyback on federal filings.
 

harmonica

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As a Libertarian, I’m against tax loopholes. I want the tax code to be as simple as possible, and with marginal tax rates as low as possible.

Democrats prefer higher marginal tax rates, so they can claim that they want to “soak the rich.”

But at the same time, these Democrats also favor giving rich people all sorts of loopholes, writeoffs, and deductions, so they don’t actually have to pay those taxes.

And now, liberals are angry at Trump for using a tax loophole that was signed into law by Obama.

The New York Times just reported:


Mr. Trump harvested that refund bonanza by declaring huge business losses — a total of $1.4 billion from his core businesses for 2008 and 2009 — that tax laws had prevented him from using in prior years.

But to turn that long arc of failure into a giant refund check, he relied on some deft accounting footwork and an unwitting gift from an unlikely source — Mr. Obama.

Business losses can work like a tax-avoidance coupon: A dollar lost on one business reduces a dollar of taxable income from elsewhere. The types and amounts of income that can be used in a given year vary, depending on an owner’s tax status. But some losses can be saved for later use, or even used to request a refund on taxes paid in a prior year.

Until 2009, those coupons could be used to wipe away taxes going back only two years. But that November, the window was more than doubled by a little-noticed provision in a bill Mr. Obama signed as part of the Great Recession recovery effort. Now business owners could request full refunds of taxes paid in the prior four years, and 50 percent of those from the year before that.

Mr. Trump had paid no income taxes in 2008. But the change meant that when he filed his taxes for 2009, he could seek a refund of not just the $13.3 million he had paid in 2007, but also the combined $56.9 million paid in 2005 and 2006, when “The Apprentice” created what was likely the biggest income tax bite of his life.

The records reviewed by The Times indicate that Mr. Trump filed for the first of several tranches of his refund several weeks later, in January 2010. That set off what tax professionals refer to as a “quickie refund,” a check processed in 90 days on a tentative basis, pending an audit by the I.R.S.

His total federal income tax refund would eventually grow to $70.1 million, plus $2,733,184 in interest. He also received $21.2 million in state and local refunds, which often piggyback on federal filings.
easy to answer that one = Nov 2016--that's why ..
1601295405227.png
 

dblack

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Yeah, I'm not sure I understand the issue either.

The guy has taken losses, and lots of liberal elites admit to not paying taxes because of the tax code.

Is anyone really surprised?
I didn't get the impression that they're upset about the loopholes. It's more of an attempt to show that he's not the "successful businessman" he claims.
 

Maxdeath

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First of all they are upset that Trump won instead of Hillary. They will never get over that.
Second they know they are going to see a second term.
Third Trump is naming SC justices
Fourth they have no idea of economics, tax laws or any other laws.
Fifth they have been told Trump bad, no reason necessary
 

BluesLegend

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Democrats are frustrated, they can't defeat Trump on the issues, the economy, trade, foreign policy, jobs, none of these issues are winnable. So true to form Dems pin their hopes on personal attacks like Trumps taxes. It's sad really, the party that used to win on the issues has been reduced to rubble.
 

BluesLegend

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This is not about Obama or a loophole.
Maybe you somehow missed the title of the op? I can understand how easy that would be
Dem's have no interest in discussing the facts. Capital improvements, depreciation, business expenses that even their most BFF corporations all leverage. This is a personal attack so facts don't matter, only the personal attack narrative. And they wonder why Trump calls this fake news.

Have you noticed they don't want to debate Trump on the issues or his performance as president? I think we all know why.
 

TNHarley

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The big takeaway from this, is that our system rewards failure. Of course, this shit blows up in our faces constantly. Its just an unfriendly reminder.
 

Maxdeath

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This is not about Obama or a loophole.
Maybe you somehow missed the title of the op? I can understand how easy that would be
Dem's have no interest in discussing the facts. Capital improvements, depreciation, business expenses that even their most BFF corporations all leverage. This is a personal attack so facts don't matter, only the personal attack narrative. And they wonder why Trump calls this fake news.

Have you noticed they don't want to debate Trump on the issues or his performance as president? I think we all know why.
It is not even about taxes. It is only about two things
sock puppet Biden needs all the help he can get so smear is good if it helps.
Trump won and will never be forgiven for that.
 

BluesLegend

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This is not about Obama or a loophole.
Maybe you somehow missed the title of the op? I can understand how easy that would be
Dem's have no interest in discussing the facts. Capital improvements, depreciation, business expenses that even their most BFF corporations all leverage. This is a personal attack so facts don't matter, only the personal attack narrative. And they wonder why Trump calls this fake news.

Have you noticed they don't want to debate Trump on the issues or his performance as president? I think we all know why.
It is not even about taxes. It is only about two things
sock puppet Biden needs all the help he can get so smear is good if it helps.
Trump won and will never be forgiven for that.
Dems did the same thing to Romney.
 

TroglocratsRdumb

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Yeah, I'm not sure I understand the issue either.

The guy has taken losses, and lots of liberal elites admit to not paying taxes because of the tax code.

Is anyone really surprised?
I didn't get the impression that they're upset about the loopholes. It's more of an attempt to show that he's not the "successful businessman" he claims.
it is not an issue, it is just another lame smear campaign
 

LAUGHatLEFTISTS

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First of all they are upset that Trump won instead of Hillary. They will never get over that.
Second they know they are going to see a second term.
Third Trump is naming SC justices
Fourth they have no idea of economics, tax laws or any other laws.
Fifth they have been told Trump bad, no reason necessary
Nailed it.
 

dblack

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Yeah, I'm not sure I understand the issue either.

The guy has taken losses, and lots of liberal elites admit to not paying taxes because of the tax code.

Is anyone really surprised?
I didn't get the impression that they're upset about the loopholes. It's more of an attempt to show that he's not the "successful businessman" he claims.
it is not an issue, it is just another lame smear campaign
Doesn't really matter to me. I've never saw success in business as having much to political leadership.
 

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