'15th Time's The Charm' Is Totally A Thing. Seriously! Stop Laughing!!
It's your House Republican-filled Sunday shows rundown!
House Republicans finally elected Kevin McCarthy as the new speaker before we ran out of Doctors from "Doctor Who," a very dignified unit of measurement. Afterward, the House quickly swore in its members, let Minority Leader Hakeem Jeffries show people what they missed out on, and adjourned before the next shitshow — voting for the House rules package.
Without a clear victory and awaiting the next session of rake-walking later today, House Republicans were left with no other option but to try and gaslight the public into believing their first example of "leadership" wasn't a colossal failure. Let's see how that went!
Chip Roy Starts The Egg Timer On Speaker McCarthy's Tenure
After receiving so many concessions that the House "Freedom Caucus" is effectively the de facto leaders of the 118th Congress, Rep. Chip Roy from Texas gave a preview of their Nakatomi Plaza terrorist tactics on CNN's "State Of The Union."
\u201c"We will use the tools of the house to enforce the terms of the agreement" -- Chip Roy on CNN on if he'll offer a motion to remove McCarthy if he doesn't include spending cuts in a debt ceiling bill\u201d— Aaron Rupar (@Aaron Rupar) 1673187438
Roy told Tapper, "We will use the rules of the House to enforce the terms of the agreement," implying that he'll vote to boot McCarthy if he offers a clean debt ceiling bill that doesn't crash the economy. It's as if the next two years for McCarthy (and the American people) will resemble the prediction Clubber Lang made for his fight against Rocky.
Dan Crenshaw Sighs
Part of the deal to get McCarthy enough votes for his speakership bid was apparently to cap domestic spending to 2022 levels for fiscal year 2024, which Tapper noted would result in (at the very least) "tens of billions of dollars not going to the Pentagon."
So stuck between cuts to programs that will effectively lose them the House in two years or a potential government shutdown that will lose them the House in two years, Rep. Dan Crenshaw from Texas gave a heavy sigh as he resigned himself to his party's fate, much like Homer Simpson stuck between a rock and a hard place.
TAPPER: If this ends up in tens of billions of dollars being cut from the Pentagon budget, will that bother you?
CRENSHAW: (sighs) It could. [...]
How is Crenshaw gonna make more wannabe "G.I. Joe" campaign commercials if you cut defense spending?! Damn it, McCarthy!!
Jim Jordan Talks Fast Without Saying Much
Over on "Fox News Sunday," host Shannon Bream had to deal with Rep. Jim Jordan of Ohio and his disdain for suit jackets. One of Jordan's signature "traits" is his memorizing and spouting of talking points at a speed that makes it seem like he's selling Micro Machine toys. It's like a jock who had a gallon's worth of talking points poured into a shot glass-sized brain.
Jordan's schtick almost made us miss his hints at more nefarious motives regarding the defense cuts Crenshaw was sad about.
\u201cAsked whether defense spending is on the chopping block, Rep. Jim Jordan (R-OH) says: "You had better look at everything. And frankly we better look at the money we send to Ukraine as well and say how can we best spend the money to protect America?"\u201d— The Recount (@The Recount) 1673189032
Jordan said, "You had better look at everything. And frankly we better look at the money we send to Ukraine as well and say how can we best spend the money to protect America?" A little isolationism mixed with not-so-subtle support for Vladimir Putin's invasion of Ukraine. This is peak Trumpism.
James Comer Might Have A Single Good Idea
We conclude with Rep. James Comer from Kentucky on NBC's "Meet The Press" with Chuck Todd. While speaking of the revelation of Trump's taxes and his lack of paying most of them, Comer accidentally proposes a good thing.
COMER: [...] If the Democrats want to make people like Donald Trump pay taxes they need to change the tax code — not the tax rate, the tax code. [...]
Don't threaten us with a good time, Jimmy.
Have a week!
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Trump Smart Again, Judging By All These Non-Existent Taxes
COULD (LOL) there be crimes?
The House House Ways and Means Committee released Donald Trump's tax returns today, via the relatively undramatic method of just publishing them in the daily Congressional Record, as though they were a bill to fund a new sewage plant in Palm Beach, to choose a perfectly random example of Congress doing its business. Talk about your Friday news dump!
The committee voted last week to release Trump's tax records from 2015 through 2020, but it took a few days to redact personal information like Social Security and bank account numbers, as if there's anything in those accounts anyway. The AP notes that the document trove totals just short of "6,000 pages, including more than 2,700 pages of individual returns from Trump and his wife, Melania, and more than 3,000 pages in returns for Trump’s business entities." Politico reports the tax forms will also be supplemented by a new report on the IRS program that was supposed to audit presidential taxes every year but, oops, didn't.
Another 722 pages are just the handwritten note "Can't sleep, VP still watching" over and over again, although it's unclear why Trump would be so worried about his vice president.
So what amazing secrets are squirreled away in Trump's taxes? It's really sweet of you to think we've actually read them this soon! Rather, we're just very subtly inserting this breaking part into the preview that we started too late to post before the taxes were actually released, which are expected to come out sometime this morning just a little while ago. Like we say, subtle.
As we noted last week, the committee already teased some of what's in Trump's 1040s and 666s and schedules A through Z-28 — the form to report depreciation on a Bitchin' Camaro — in a report compiled by staff on the Congressional Joint Committee on Taxation (JCT). Financial journalist David Cay Johnston, who's followed the spoor of Trump's taxes for ages, did a deep dive into that document and, once he'd had a long hot shower, declared that he's pretty darn sure that the full Trump documents will provide evidence of tax criming. As Johnston puts it, Trump "knowingly committed dozens of brazen tax frauds during the six years when he ran for office and was President."
For instance, there's Trump's highly dubious uses — 26 times during the six years covered by the report — of "sole proprietor reports," aka Schedule C,
that showed huge business expenses despite having zero revenue. That created losses which Trump used to offset his income from work and investments, thus lowering his income taxes. Additional Schedule Cs had expenses exactly equal to revenues while only a few showed profits.
Trump knew this was unlawful because he lost two trials over his 1984 income taxes in which he did the exact same thing, a story I broke in June 2016. Both judges, in scathing opinions, ruled that Trump committed civil tax fraud.
Johnston notes that creative Schedule C filings may not have been "Trump's most lucrative tax cheating technique, but it is the easiest for jurors to understand should Trump be indicted on tax charges." All told, he filed 65 Schedule C forms from 2015 to 2020, which "helped him convert a federal tax bill that could have been as high as $46 million into a $2.1 million profit from the federal tax system." Yes, he actually made a profit on the Alternative Minimum Tax. That's some minimum, etc., etc., you know the drill.
Also too, Johnston points out that the JCT treats all the Trump businesses named in the Schedule C filings as if they're legitimate, but adds that some "may not exist except in tax filings."
Auditors would be smart to demand evidence of business activity such as calendars, correspondence, travel to see potential clients, and the like to determine whether some or all of these businesses exist only on paper, if that.
And if the filings were fraudulent, that's not proof that Trump is a genius, it really isn't:
Trump received more than $154.2 million in wages, interest, dividends, capital gains, and pensions over the six years when he ran for president or lived in the White House. Despite this huge revenue stream, Trump reported minus $53.2 million in Adjusted Gross Income, the last number on the front page of your Form 1040 income tax return.
Johnston runs down several other potentially hinky deductions, such as potentially (LOL) bogus charitable donations, deductions for business costs that may have actually been personal expenses, and, as ever, those loans to Eric, Ivanka, and Don Junior that may or may not have actually been an effort to avoid gift taxes.
Even in the preliminary report, Johnston says, the numbers look sketchy:
In four of the six years, Trump’s taxable income was zero.
The report shows that Trump paid no income tax in three of the six years and just $750 in 2016.
Over the six years, he paid $776,126 in net federal income tax. That’s just half of one percent of his positive income, the equivalent of a married couple earning $100,000 paying $500 instead of the typical $8,500. The typical tax rate for Trump’s income class is more than 25%.
Trump received $18.7 million in refunds under the Alternative Minimum Tax, which is $2.8 million more than he paid, a nifty profit off that tax law. Three decades ago Trump lobbied Congress for generous Alternative Minimum Tax refund provisions for himself and other real estate investors.
In four of those six years, all but 2016 and 2017, his Schedule Cs showed losses totaling almost $1.3 million.
OK, but what if he's not a tax cheat, but just really really bad at business? Haha, who are we kidding? He could (LOL) absolutely be both! Johnston also points out that there's no statute of limitations on civil tax fraud, which means that even if Trump escapes criminal charges, he could still get his ass sued for back taxes. That said, Johnson adds, the JCT report
also notes another tax integrity issue I have spent years exposing: the least compliant taxpayers get away with wrongdoing because fighting them consumes vast amounts of limited government resources.
Good thing the IRS is hiring a lot more personnel, then.
What's Hinky In Donald Trump's Taxes? Wouldn't YOU Like To Know!
Maybe we'll tell you if you're nice.
This week the House Ways and Means Committee announced that it would be releasing Donald Trump's tax returns from the time he ran from president through his four years golfing, being a big old racist, and subverting democracy, but mostly golfing. The biggest thing we learned from a report by the committee was that the IRS, in a surprising departure from its stated policy, never bothered auditing Trump's taxes while he was "president." At least not until Democrats won control of the House and started looking into the matter.
More: The IRS Must Have Forgotten To Audit Trump's Magnificent Taxes!
Yr Wonkette looked earlier at some of the questionable crap the committee's report pointed out, so now let's dig a little further into the details with this nice wrapup of some "Red Flags" that Politico reported on yesterday. The findings in the report come from the Joint Committee on Taxation (JCT), which Politico describes as "Congress’ brain on tax issues." And here we thought "Congress's brain on tax issues" was more like an egg frying in a pan full of money to be given to corporations, wowza.
Is Trump Really THAT Terrible At Business?
The biggest WTF, as we mentioned in that earlier story, is the ginormous business losses Trump used to reduce his overall income and reduce his tax liability. As Politico notes, if business losses in one year are so great that they offset one year's income, they can even be rolled over into future tax years, to reduce tax paid in those years as well.
Without those losses, Trump’s taxes would look fundamentally different. In 2016, for example, when he paid just $750 in federal income taxes, he reported $30 million in earnings but also $60 million in losses.
So were the losses legit, or just fancy, dishonest bookkeeping? Unfortunately, there's a catch in figuring that out, because the business losses in the returns the House requested seem to have started in tax years prior to the returns the committee requested.
Steve Rosenthal of the Tax Policy Center explained that to really tell whether the losses were valid, Ways and Means should have requested a broader range of returns. At least the IRS does seem to have been looking at those earlier returns, according to the report, which notes that may have been one reason the IRS hadn't finished the audits it began after nudging from Democrats in Congress:
The IRS’s approach to auditing Trump’s 2015 return was affected, JCT said, by “the complexity of issues being worked for tax years 2009 through 2013” and “the prior years’ tax liabilities have not been settled.”
But What If His Hobbies ARE Business?
Another really big stinky clue to possible tax embuggerance is that there appear to be "multiple instances in which Trump may be improperly deducting money spent on personal activities and hobbies as business expenses." Wait, even if he did very important business thinking while golfing?
This one's kind of blatant, Politico says:
JCT says it found many filings that are used to report streams of income where his earnings and expenses exactly matched, or where there was no reported income at all — a sign of potential improper mingling of expenses.
In 2016, for example, the filing for DT Endeavor I LLC (aviation) reported gross income of $680,886 and expenses that also totaled $680,886. A filing for Melania Trump (modeling) said it took in $3,848 and reported the same amount of expenses. A filing for Donald J. Trump (speaking) reported $50,000 in gross income and $46,162 in travel expenses.
Hilariously, Trump deducted business expenses to the tune of $342,182 in 2020 for "a single family home deemed a rental property that had no income associated with it." The JCT's language somehow manages not to verge into sarcasm in suggesting it would be a good idea to examine the "high level of expenses for the residential rental property, as well as whether such property was actually held for rent during 2020," because if it's not actually bringing in any rent, what the hell, mang?
Is Donald Pulling A Fred Trump?
No, we are not asking if he once attended a Klan rally, but rather whether Trump has been transferring large sums to his wastrel children and disguising them as "loans" to avoid gift taxes — a hallowed Trump family tradition going back to the tax avoidance shenanigans Fred Trump used to distribute his wealth to Donald and siblings.
MOAR! New York Times Calls A Fraud A Fraud
The returns show Trump reported receiving "hundreds of thousands of dollars in interest payments on loans he gave Ivanka Trump, Donald Trump, Jr. and Eric Trump," which, if Trump were using such loans to avoid gift tax, would also allow the kids to deduct the interest from their own taxes. Proving intent could be a bear, but Politico points out "The IRS has seen this before and has rules about when those would be considered legitimate loans by requiring minimum interest rates being paid."
No You Can't Make Us Explain That Hinky 'Conservation Easement' Again, Not Right Before Christmas!
Liz wrote about THAT mess here, and it's one of the things New York AG Tish James is investigating, and we would rather be mulched than try to explain how ugly it is.
We're Supposed To Believe Donald Trump Paid Taxes In Other Countries?
For all his talent in not paying much income tax in the US of A, he did claim a tax credit in 2018 for supposedly paying $1.3 million in taxes to foreign countries. The idea is that it's not fair to tax people in the US for income they've paid tax on elsewhere. But did Trump actually pay a lot of foreign tax in 2018? The IRS probably should demand the receipts.
So there are just some of the ways Donald Trump's taxes may betray either vry smrt accounting or massive fraud, the end.
[Politico / Image created using DreamStudio Lite AI]
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Kevin Brady: Releasing Trump's Taxes Means We Could See Supreme Court Taxes Too. Oh ... No!
Don't threaten us with a good time.
The House Ways and Means Committee voted Tuesday to release Donald Trump's tax returns to the public, covering the time he ran for president and the four years he resided in the White House. CNBC explains that will
take “a few days” to remove some sensitive information before the release of Trump’s returns and those of eight affiliated Trump businesses, said Rep. Richard Neal, D-Mass, the committee’s chairman.
“But we believe that it’s only days,” Neal said.
The records set for release include the notes of IRS audits of the returns.
The 24 to 16 vote to release the tax returns was along party lines, as Republicans all voted to protect the Great Man — and you too, John or Jane Q Citizen, because they care!
You see, prior to the committee debate and vote, Rep. Kevin Brady (R-Texas) its ranking Republican, offered a dire warning: If Democrats release Donald Trump's taxes, that means they might release yours, or mine, or golly, anyone's! Here's video:
\u201cKevin Brady (R-TX) warns that releasing Trump\u2019s tax returns could lead to the release of tax returns of Supreme Court Justices\u201d— Acyn (@Acyn) 1671566913
Brady warned that
Our concern is that, if taken, this committee action will set a terrible precedent that unleashes a dangerous new political weapon that reaches far beyond the former president and overturns decades of privacy protections for average Americans that have existed since the Watergate reforms. [...]
Going forward, the majority chairmen of the House Ways and Means Committee and the Senate Finance Committee will have nearly unlimited power to target and make public the tax returns of private citizens. And not just private citizens: political enemies, business and labor leaders, or even the returns of Supreme Court justices themselves.
With Republicans taking control of the House in January, that sounds like a threat in the classic Republican style: Don't you make us do something horrible, you mean Democrats. The Texas Tribune reports that Brady also made a motion during the committee's debate to "make a transcript of the meeting public so voters could identify any members who wanted to make the records public," but that appears not to have scared anyone, since the committee voted unanimously to release a transcript.
So yeah, get ready for the next GOP chair of the Ways and Means chair to request that the Treasury Department turn over the tax returns of every Democrat who voted to release Trump's taxes. (It won't be Brady, since he's retiring.) And then we'll probably have a year and a half of hearings on Richard Neal's deductions.
As for Brady's warning that the committee's vote might result in the release of just about anyone's taxes, we're with civil rights attorney Scott Hechinger, who tweeted yesterday, "I’d like to see the tax returns of Supreme Court Justices." Let's even pass a law requiring top officials of the federal government to release their taxes. Or at the very least, let's require it for all presidential candidates, or for sitting presidents, as Neal and other Democrats have called for.
Should all of us ordinary citizens worry that our taxes will be released by out of control Democrats? Seems unlikely, unless some of us private citizens run for president and then spend four years as president falsely insisting that we can't release our taxes because they're under audit.
There's actually no law against releasing returns that are being audited. Richard Nixon's taxes were under audit when he released his returns in 1973, explaining that Americans needed to be able to be certain their president isn't a crook. Which Nixon famously explained he was not, and see, here are his taxes to prove it. (A subsequent audit showed Nixon was actually short about a half-million bucks, but he promised to repay it.)
But even if our tax returns were released, we're betting that the most likely outcome would be that we'd all compare notes on the crazy amounts of interest we paid on our student loans each year. That's just nuts.
[Texas Tribune / CNBC / Newsweek]
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