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For the tax ignorant rats whose bible is the NYTs
RoadTrip
Member, Swaye's Wigwam Posts: 8,147 
in Tug Tavern
Just one example of several inconvenient truths about Trump's taxes the NYTs is banking on its minions to not understand.
"Let’s try to educate the New York Times, again. Their review of Trump’s tax returns, however they were obtained, show that Trump paid no income tax in 10 of the previous 15 years and paid only $750 in income taxes in 2016. They claim this shows “a story fundamentally different from the one he has sold to the American public.”
There’s a basic difference between net income and cash flow. Taxes are paid on net income. Cash flow shows the net proceeds received by the owner and is what the investor/owner is most concerned about. Here’s how it works:
Suppose a real estate developer built a $100 million building. Suppose the building earned $3 million annually in before-tax income. If the tax rate is 33 percent, as it approximately was before the 2018 tax cut, the developer would pay $1 million in taxes and would have $2 million left over as his cash flow.
The IRS, however, allows investors to recover their investment capital before paying taxes. So, if the developer built a $100 building and the IRS allowed for the capital to be recovered over 25 years, then the developer would have a $4 million annual depreciation expense.
That means instead of $3 million in taxable income, the venture would have a $1 million loss. Therefore, no taxes would be paid, meaning the owner keeps all $3 million in income.
The tax returns would show a $1 million loss, but the cash flow would be $3 million instead of $2 million—a $1 million cash flow increase due to the reduction of income taxes. Any student who has taken at least one course in accounting or finance should know this."
New York Times Biased and Ignorant Reporting on Trump’s Taxes
https://www.theepochtimes.com/new-york-times-biased-and-ignorant-reporting-on-trumps-taxes_3517302.html
"Let’s try to educate the New York Times, again. Their review of Trump’s tax returns, however they were obtained, show that Trump paid no income tax in 10 of the previous 15 years and paid only $750 in income taxes in 2016. They claim this shows “a story fundamentally different from the one he has sold to the American public.”
There’s a basic difference between net income and cash flow. Taxes are paid on net income. Cash flow shows the net proceeds received by the owner and is what the investor/owner is most concerned about. Here’s how it works:
Suppose a real estate developer built a $100 million building. Suppose the building earned $3 million annually in before-tax income. If the tax rate is 33 percent, as it approximately was before the 2018 tax cut, the developer would pay $1 million in taxes and would have $2 million left over as his cash flow.
The IRS, however, allows investors to recover their investment capital before paying taxes. So, if the developer built a $100 building and the IRS allowed for the capital to be recovered over 25 years, then the developer would have a $4 million annual depreciation expense.
That means instead of $3 million in taxable income, the venture would have a $1 million loss. Therefore, no taxes would be paid, meaning the owner keeps all $3 million in income.
The tax returns would show a $1 million loss, but the cash flow would be $3 million instead of $2 million—a $1 million cash flow increase due to the reduction of income taxes. Any student who has taken at least one course in accounting or finance should know this."
New York Times Biased and Ignorant Reporting on Trump’s Taxes
https://www.theepochtimes.com/new-york-times-biased-and-ignorant-reporting-on-trumps-taxes_3517302.html
Comments
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Nothing in that example is wrong. It's not super applicable to Trump since a vast majority of the deductions he took were losses unrelated to depreciation, but yes, that's how the tax law works.
Anyways, let's say this fictional scenario is exactly what happened to Trump and it's why he ended up having no material income tax. That would still be evidence of him being a pretty incompetent businessman. Tying up $100m in cash over a multi-year period only to achieve a 3% annual return is enough to get any CEO fired by the board. -
Trump is stupid and incompetent or he's fooled the IRS for decades
Our choice? -
I've always been on team "Trump is a mediocre businessman". There's a few aggressive positions he's taken that may get reversed on audit (the abandoned stake in his AC casino being the most notable), but there's nothing in the NYT story that screams fraud or really anything close to it.RaceBannon said:Trump is stupid and incompetent or he's fooled the IRS for decades
Our choice? -
Not unfair. His bidness acumen hasn't matched his ability to self promote over 40 years or soGreenRiverGatorz said:
I've always been on team "Trump is a mediocre businessman". There's a few aggressive positions he's taken that may get reversed on audit (the abandoned stake in his AC casino being the most notable), but there's nothing in the NYT story that screams fraud or really anything close to it.RaceBannon said:Trump is stupid and incompetent or he's fooled the IRS for decades
Our choice? -
He wouldn't tie up 100 million, he would tie up 10 and get a loan for the rest.
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His crushing debt should concern you and all of us.Goduckies said:He wouldn't tie up 100 million, he would tie up 10 and get a loan for the rest.
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So China should invest a billion and the Moscow mayors wife should send him 3.5 million. He doesn't know shit like the Bidens. Trump should attract huge money because not knowing shit seems more profitable.HHusky said:
His crushing debt should concern you and all of us.Goduckies said:He wouldn't tie up 100 million, he would tie up 10 and get a loan for the rest.
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Giving up already?UW_Doog_Bot said: -
But what about . . .?Sledog said:
So China should invest a billion and the Moscow mayors wife should send him 3.5 million. He doesn't know shit like the Bidens. Trump should attract huge money because not knowing shit seems more profitable.HHusky said:
His crushing debt should concern you and all of us.Goduckies said:He wouldn't tie up 100 million, he would tie up 10 and get a loan for the rest.
Pathetic. -
It's all good with you. My hero's have always been cowboys.HHusky said:
But what about . . .?Sledog said:
So China should invest a billion and the Moscow mayors wife should send him 3.5 million. He doesn't know shit like the Bidens. Trump should attract huge money because not knowing shit seems more profitable.HHusky said:
His crushing debt should concern you and all of us.Goduckies said:He wouldn't tie up 100 million, he would tie up 10 and get a loan for the rest.
Pathetic. -
It’s not nice to pick on retardsHHusky said:
Giving up already?UW_Doog_Bot said:
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Glad to see Stupid chimed in. In the real world however...HHusky said:
His crushing debt should concern you and all of us.Goduckies said:He wouldn't tie up 100 million, he would tie up 10 and get a loan for the rest.
He screwed up in his past levering up way past what he could afford...looks like he's gotten much more conservative in his old age...
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Disagree.
Over leverage can be a fantastic tool. In the 80’s Trump was the fucking Master. -
Betting the exacta as an investment strategy. Shrewd.doogie said:Disagree.
Over leverage can be a fantastic tool. In the 80’s Trump was the fucking Master. -
It's been the Throbber's experience that bidness acumen and self promotion have virtually no correlation. The Throbber knows a boatload of really solid bidnessmen who just never could get over the top financially.RaceBannon said:
Not unfair. His bidness acumen hasn't matched his ability to self promote over 40 years or soGreenRiverGatorz said:
I've always been on team "Trump is a mediocre businessman". There's a few aggressive positions he's taken that may get reversed on audit (the abandoned stake in his AC casino being the most notable), but there's nothing in the NYT story that screams fraud or really anything close to it.RaceBannon said:Trump is stupid and incompetent or he's fooled the IRS for decades
Our choice?
On the other, The Throbber also knows a shitload of corporate execs and self-promoters who have ka-chinged big time due to their ability to speak with absolute authority on any topic under the sun. By the time the powers that be figure out what inept cocksuckers they are, they have cashed in their options, pulled a sweet severance deal and are on to their next sucker.
Biden is running the same scam in the political areana and has for 47 years. Joe Biden is the working man's friend. Joe Biden is working for YOU, Cornpop. You can trust Joe Biden.
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Current life goalsPurpleThrobber said:
It's been the Throbber's experience that bidness acumen and self promotion have virtually no correlation. The Throbber knows a boatload of really solid bidnessmen who just never could get over the top financially.RaceBannon said:
Not unfair. His bidness acumen hasn't matched his ability to self promote over 40 years or soGreenRiverGatorz said:
I've always been on team "Trump is a mediocre businessman". There's a few aggressive positions he's taken that may get reversed on audit (the abandoned stake in his AC casino being the most notable), but there's nothing in the NYT story that screams fraud or really anything close to it.RaceBannon said:Trump is stupid and incompetent or he's fooled the IRS for decades
Our choice?
On the other, The Throbber also knows a shitload of corporate execs and self-promoters who have ka-chinged big time due to their ability to speak with absolute authority on any topic under the sun. By the time the powers that be figure out what inept cocksuckers they are, they have cashed in their options, pulled a sweet severance deal and are on to their next sucker.
Biden is running the same scam in the political areana and has for 47 years. Joe Biden is the working man's friend. Joe Biden is working for YOU, Cornpop. You can trust Joe Biden. -
I think the Trump Tower is the gem in the crown and worthy of some praise. The hotel he built as well. It seems like his troubles began in Atlantic City. The gambler tapped out
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Keep going, I'm enjoying this. You should double down some more.HHusky said:
Giving up already?UW_Doog_Bot said: -
Atlantic City tapped out and Trump was the first one to see it and the first one out of town. ALL of his Atlantic City investors followed him to Vegas with new money.RaceBannon said:I think the Trump Tower is the gem in the crown and worthy of some praise. The hotel he built as well. It seems like his troubles began in Atlantic City. The gambler tapped out
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HH until you are willing to actually learn something, I think it’s probably best if you didn’t participate in this thread. It’s clearly beyond you, and your ignorant, snide little remarks aren’t helping the perception that you’re a fucking arrogant moron.
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Flying commercial and then renting a car to drive to the middle of Missouri during a pandemic you can’t stop posting about is a shrewd business strategy. His wife was exposed!! All the Big Shots make their fortune in the Ozarks after flying coach to St. Louis.HHusky said:
Betting the exacta as an investment strategy. Shrewd.doogie said:Disagree.
Over leverage can be a fantastic tool. In the 80’s Trump was the fucking Master. -
We can't all be likeable.thechatch said:HH until you are willing to actually learn something, I think it’s probably best if you didn’t participate in this thread. It’s clearly beyond you, and your ignorant, snide little remarks aren’t helping the perception that you’re a fucking arrogant moron.
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Being an unlikeable Lightweight is his stretch goal. Ozarks
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C'mon Igor. RT isn't going to pay the big rubles for stuff that's this derivative.NorthwestFresh said:Being an unlikeable Lightweight is his stretch goal. Ozarks
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trumpy is too old to survive in jail ... I mean, who's gonna style his hair and apply the spray tan!?
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There’s the Russian insult. Called them both beforehand.
Predictable buffoon. -
WOODHoustonHusky said:
Glad to see Stupid chimed in. In the real world however...HHusky said:
His crushing debt should concern you and all of us.Goduckies said:He wouldn't tie up 100 million, he would tie up 10 and get a loan for the rest.
He screwed up in his past levering up way past what he could afford...looks like he's gotten much more conservative in his old age...
