The recent media reports about Donald Trump paying only $750 in taxes despite enjoying a luxurious lifestyle has made US citizens debate on two things; either POTUS is someone who is worst at doing business or he is simply a cheat.
Even Bernie Sanders, the democratic politician and socialist who also contested for the nomination of US President said the same while emphasizing on the need to tax the rich.
Why Donald Trump Paid Such Low-Income Taxes
Here are two possible reasons why Donald Trump didn’t pay taxes; either he was losing money in business or he was highly indebted.
Well, his critics and even the economists from Europe and the United States think that there is a third reason which is tax evasion due to fault in system that favors the rich. As the Branko Milanovic, the famous economist of this time opines that the US tax system is created by and owners of capital so that they pay as little in taxes as possible.
Mr. President stated that he has been losing money rather than making. Last year, many trolled him on allegedly losing 1 billion USD. So apparently his status of being loser in doing business played a role in making him a defaulter. He allegedly faced numerous financial challenges due to which he found it hard to pay the tax money. Secondly, On the contrary, he has been busy maintaining his deluxe lifestyle: therefore, he did not pay his owed debt to the state.
He only managed to pay $750 only in two years, which is not remotely close to the income tax that most of the US citizens pay. The very alarming situation has put Trump under the public’s suspicion.
This thread by LSE economist explains the reason why Trump would have paid so lower taxes.
Donald Trump on Accusations Against Him about Income Tax Fraud
He claimed that the data gathered by the Times was false and the news about his tax returns was fake. He blamed IRS (Internal Revenue Service) for treating him badly and making his image a sham. He said, he paid tax money and it had been under audit, for a long time. Mr. Donald Trump faced hardships based on his financial conditions due to the IRS. He stated that by law, it is up to the president whether he/she wants to reveal his/her financial records or not. On the contrary, He had faced problems in order to keep the data concealed. Overall, Donald Trump mentioned that the public would believe him once he filed tax returns.
Public views after finding out about Trump’s tax story:
The very first reaction any normal person could have is how a politician who is the President of the United States, a businessman, and a billionaire can have financial problems. Similarly, in his case, people projected similar concerns about him. They stated that even common US citizens pay more tax that $750. It is hard to believe for people that a person, who owns dozens of businesses, is unable to pay tax.
As per public’s opinion, it is unfair that a political personality, who is rich enough to possess multiple properties, does not fulfill his duty as a citizen. They find Trump as a fraud who does not play his part either as a good US President or as a law abiding US citizen.