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Trump blasts release of 2005 tax form, reporter's account

Posted March 15

— President Donald Trump earned $153 million and paid $36.5 million in income taxes in 2005, paying a roughly 25 percent effective tax rate thanks to a tax he has since sought to eliminate, according to newly disclosed tax documents.

The pages from Trump's federal tax return show the real estate mogul also reported a business loss of $103 million that year, although the documents don't provide detail. The forms show that Trump paid an effective tax rate of 24.5 percent, a figure well above the roughly 10 percent the average American taxpayer forks over each year, but below the 27.4 percent that taxpayers earning 1 million dollars a year average were paying at the time, according to data from the Congressional Joint Committee on Taxation.

The tax form was obtained by Pulitzer prize-winning journalist David Cay Johnston, who runs the website DCReport.org, and reported on MSNBC's "The Rachel Maddow Show." Johnston, who has long reported on tax issues, said he received the documents in the mail, unsolicited.

Trump took to Twitter early Wednesday to cast doubt on Johnston's account.

"Does anybody really believe that a reporter, who nobody ever heard of, 'went to his mailbox' and found my tax returns? @NBCNews FAKE NEWS!"

Johnston, speaking to ABC's "Good Morning America" Wednesday, said it's entirely possible that he received the returns from Trump himself or someone close to him, saying, "Donald has a long history of leaking things about himself."

He noted that the real question remains the sources of Trump's income, saying Trump doesn't want us to know "who he's beholden to."

Trump's hefty business loss appears to be a continued benefit from his use of a tax loophole in the 1990s, which allowed him to deduct his creditors' losses on Trump's failing casinos as his own business losses, which Trump then used to offset his personal taxes in future years. In 1995, Trump reported a loss of more than $900 million — an amount that had dwindled to $103 million by the 2005 filing.

Tax records obtained by The New York Times last year showed the losses were so large they could have allowed Trump to avoid paying taxes for up to 18 years. But Trump's 2005 filing shows that another tax prevented him from realizing the full benefit of those deductions.

The bulk of Trump's tax bill that year was due to the Alternative Minimum Tax, a tax aimed at preventing high-income earners from paying minimal taxes.

The AMT requires many taxpayers to calculate their taxes twice — once under the rules for regular income tax and then again under AMT — and then pay the higher amount. Critics say the tax has ensnared more middle-class people than intended, raising what they owe the federal government each year.

Were it not for the AMT, Trump would have avoided all but a few million dollars of his 2005 tax bill.

Trump's campaign website called for the end of the AMT, which is expected to bring in more than $350 billion in revenues from 2016 to 2025.

As a candidate and as president, Trump has refused to release his tax returns, breaking a decades-long tradition. Although he initially promised to do so, he later claimed he was under audit by the Internal Revenue Service and said his attorneys had advised against it — though experts and IRS officials said such audits don't bar taxpayers from releasing their returns.

The White House pushed back even before the release of the documents Tuesday night, saying that publishing the information was illegal.

"You know you are desperate for ratings when you are willing to violate the law to push a story about two pages of tax returns from over a decade ago," the White House said in a statement issued on condition that it be attributed to an anonymous official, although the president has decried the use of anonymous sources.

The unauthorized release or publishing of federal tax returns is a criminal offense, punishable by a fine of up to $5,000 and up to five years in jail. But Maddow argued that MSNBC was exercising its First Amendment right to publish information in the public interest.

Trump long insisted the American public wasn't interested in his returns and said little could be learned from them. But Trump's full returns would contain key details about things like his charitable giving, his income sources, the type of deductions he claimed, how much he earned from his assets and what strategies Trump used to reduce his tax bill.

The issue was a major point of attack from his election rival Hillary Clinton, who suggested Trump had something to hide.

The White House has not said whether the president plans to release his returns while he's in office. More than 1 million people have signed a White House petition urging the president to release them.

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Associated Press writer Jonathan Lemire in New York and Vivian Salama in Washington contributed to this report.

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Follow Colvin on Twitter at https://twitter.com/colvinj

15 Comments

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  • William Sherman Mar 16, 12:04 a.m.
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    My, my, my---a bit exaggerated and dramatic aren't we?? Really now--kill millions of Americans??? Millions???

  • John Kramer Mar 15, 6:46 p.m.
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    I cannot believe he only paid $38 million. What an outrage! I am eternally grateful for all the folks posting hateful comments. That will teach him to be so penurious in is tax paying!

  • Jeff Herring Mar 15, 2:42 p.m.
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    Trump clearly released this year's tax return, cherry picking what he released (no attached schedules that would have shown where his money came from) because it shows he actually paid taxes. He only paid taxes because of the alternative minimum tax, which he wants to eliminate. I guarantee this never happened again because his accountants would have fixed it the next year. somewhere their is russian money and i want to see it.

  • Mike Trekker Mar 15, 1:14 p.m.
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    This backfired on the left: Bernie 13%, MSNBC Comcast 24%, Obama 19%. The left is trying to create any hindrance to the Obamacare Health tax repeal.

  • Edward Anderson Mar 15, 12:37 p.m.
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    Hmmm...interesting timing. I wonder if these taxes were released (by the Donald himself?) to create a distraction from the Republican's toxic plan to repeal/replace the Affordable Care Act? You know, the one that's going to result in millions of hard-working Americans who are no longer able to afford health care? The one that is going to KILL MILLIONS of Americans!

  • Clarence Drumgoole Mar 15, 10:49 a.m.
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    Trump still a liar, nothing can distract from that!

  • Travis Perry Mar 15, 10:48 a.m.
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    t is well known that he has done huge business deals with criminals all over the world, and therefore, may have obligations to people or countries other than the US. That is not good, since his priorities should lie with the American citizens, and no one else.

    Well known. Any sources for that?

  • Howard Roark Mar 15, 10:41 a.m.
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    Why? She's not even in a position of power anymore. You're going to need to let go for a moment. We still don't have Trump's.

    Not saying Clinton isn't hiding something from the past. Seriously, she has no clout in Washington right now. Let's start with the one holding the highest office in the land. The same one who has holdings and business dealings throughout the world.

    She at least released 8 years. The only whiff of anything we've seen from Trump has been leaked.

    But you think we still need to be focusing on Hillary?

  • Edwin Duncan Mar 15, 10:14 a.m.
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    Now can we have the Clintons' taxes from the Whitewater years?

  • Howard Roark Mar 15, 9:32 a.m.
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    Well, that was anticlimactic. This was a ratings trick for Maddow, nothing more.

    However, I'm rather confident that the bounty on the Clown in Chief's financial data is rather high. I believe it will only be a matter of time.

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