Minnesota Governor Tim Walz’s recent claim about Donald Trump’s federal tax payments during the vice presidential candidate debate has been proven to be inaccurate.
At a Glance
- Trump paid $750 in federal income taxes the year he won the presidency.
- Trump paid no income taxes in 10 of the previous 15 years due to significant financial losses.
- His finances are under stress with significant debt coming due.
- Trump is involved in a decade-long audit battle with the IRS.
- Reports revealed significant income from abroad, contradicting Trump’s business image.
Inaccurate Claim on Federal Tax Payments
Minnesota Governor Tim Walz claimed during the CBS News debate that Donald Trump has not paid federal taxes in the past 15 years. This assertion is false. Investigations by journalist Rachel Maddow in 2017 and the New York Times in 2020 confirmed Trump did pay federal taxes during several of those years. The confusion arises from Trump’s use of legal tax reduction strategies, which substantially lowered his taxable income but did not eliminate his federal tax responsibilities.
In 2016 and 2017, Trump paid $750 in federal income taxes, respectively. However, in 10 of the previous 15 years, Trump reported significant financial losses, thereby not paying federal income taxes. These numbers are detailed in reports by the New York Times, which obtained tax return data spanning over two decades. These findings underscore the complexity of Trump’s financial dealings and tax strategies.
Financial Stress and Ongoing IRS Audit
Additionally, Trump’s finances are currently strained with hundreds of millions of dollars in debt coming due, which he has personally guaranteed. A decade-long audit battle with the IRS over a $72.9 million tax refund continues, and a ruling against him could cost over $100 million. Amidst all this, Trump has dismissed various reports on his tax payments as “fake news,” without providing specifics.
Financial disclosures illustrate a paradox. In 2018, Trump reported earnings of at least $434.9 million, yet his tax filings showed a loss of $47.4 million. Such discrepancies highlight how Trump used extensive deductions and business tax credits to minimize his tax obligations. Moreover, he paid more in foreign taxes in nations such as India and the Philippines than in the United States.
Public and Legal Reactions
Richard Neal, chair of the House Ways and Means Committee, emphasized the necessity to access Trump’s tax documents. However, Trump has persistently faced court challenges against those seeking this access. Amid the financial scrutiny, Trump’s image as a successful businessman has faced intense challenges, contradicting the notion of his financial acumen.
Despite the legal and financial troubles, Alan Garten, a lawyer for the Trump Organization, has claimed that the reported facts appear inaccurate. Garten asserted that Trump has paid tens of millions in personal taxes, though details remain vague. The ongoing battles and differing portrayals of Trump’s tax affairs continue to stir public and political debate.
Sources:
- Fact Check: Walz Falsely Claims Trump Hasn’t Paid Taxes in 15 Years
- Long-Concealed Records Show Trump’s Chronic Losses and Years of Tax Avoidance
- New York Times: Trump paid no income taxes in 10 out of 15 years beginning in 2000
- Trump’s tax returns released by House committee show he paid little in taxes
- President Donald Trump’s tax returns show “what any wealthy person’s tax history is, if you can believe it — which is good years and bad years, years of immense taxes and years of almost no taxes at all because you carry over losses.”
- Trump paid no income taxes in 10 of 15 years, New York Times reports
- Trump’s returns shed light on tax offsets, foreign accounts
