What Hillary, Kaine, and the New York Times do not understand about taxes

It is clear from the attacks on Trump about his deduction of legitimate losses that the media, Hillary, and Tim Kaine, need a lesson on the difference between proper, sensible, necessary loss deductions and tax loopholes.

Wealthy individuals like Mark Zuckerberg, Bill Gates, and Warren Buffett get to deduct the market value of their stock instead of their purchase cost when they donate it to charity, including their own foundations.  They pay no capital gains tax on the full market value and greatly reduce their tax burden, therefore they are heavily subsidized.  When a wealthy person buys a piece of art for $100,000 and gets an appraiser to say it is worth $2 million to a museum, we all subsidize that and it certainly does not help the poor.  This is a major loophole

Facebook also uses a major loophole on stock options to reduce its tax bill on its billions in annual income to zero.  Has the NYT or Hillary lectured Mark Zuckerberg that he and his company don’t pay their fair share for government services?

A major loophole that Trump wants to get rid of is the special capital gains tax rate that hedge funds and private equity firms get on something called “carried interest.”  Carried interest is essentially the ordinary 20% incentive fee that hedge funds and private equity entities charge the investors.  Extremely wealthy billionaires like Democrat benefactor George Soros get this special rate.

Bill Clinton did not get rid of this tax break, Hillary never proposed a bill to get rid of it, and Obama and the Democrats could have repealed this appalling tax break when they had complete control of Congress in 2009 and 2010 yet left it in place.

Is there any wonder that the investment banks and hedge fund owners support Hillary when Trump wants to get rid of the massive loophole?  I wonder what Hillary told them in her unreleased $250,000 speeches.

What Trump did, in contrast to using loopholes to reduce his tax bill, is deduct ordinary losses, which is what a large number of companies, farmers, and individuals do.  They have to be able to carry forward or back loss years to profitable years or else the government can get 40% to 50% in profitable years and companies and individuals would have to eat 100% of losses in bad years.  A lot of companies wouldn’t make it, but the greedy government that took no risk would have its cake and eat it, too.

Another thing companies like Microsoft and Google do is allocate their income to lower-tax countries.  That makes the stock price go up and makes Bill Gates and other owners much wealthier.

I have no problem with individuals and businesses who legitimately lower their tax bills.  It is especially aggravating, however, when people like Gates, Zuckerberg, Buffett and Soros, lecture others to pay more taxes while they do everything to lower their own.  That is disingenuous at best.

It is especially pathetic when the NYT, other media, Hillary, and her surrogates attempt to destroy a candidate on taxes when they seem to have such little knowledge about taxes and the economy themselves.  They obviously have a candidate to elect, and an agenda and facts haven’t mattered for a long time.

The hit pieces, by Clinton stenographers pretending to be reporters, on Trump are coming fast and furious while Hillary and her team enjoy the adulation and unpaid support.

Someone should ask Hillary if Elon Musk should be able to offset profits if he makes them with previous losses.

On a side note:

Hillary calls Trump a lousy businessman and says she doesn’t understand how any good business could ever report a loss of almost $1 billion.

Here is a list of the top five losses of all time.

  • AOL Time Warner: $100 billion in 2002
  • AIG: $100 billion 2008
  • GM: $31 billion in 2008
  • Fannie & Freddie: $72 billion in 2009
  • JDS Uniphase: $56 billion

I also believe that Sprint has had continuous losses since 2006, and Tesla and Solar City have never made a profit.

I wonder if Hillary and all of the other people who lie by saying Trump doesn’t pay money to support government services would say the same about the hundreds of companies that report losses each year and who continue to employ millions of people, thanks in part to the tax carry-forward of losses.

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