Trump taxes
To the editor:
Trump’s tax strategy was legal and largely used by “Hillary Clinton largest donors.”
Twenty-six of the most powerful American corporations – such as Boeing, General Electric, and Verizon – paid no federal income tax from 2008 to 2012, according to a report detailing how Fortune 500 companies exploit tax breaks and loopholes. The report conducted by public advocacy group Citizens for Tax Justice (CTJ), focuses on the 288 companies in the Fortune 500 that registered consistent profit every year from 2008 to 2012. Those 288 profitable corporations paid an “effective federal income tax rate of just 19.4 percent over the five-year period – far less than the statutory 35 percent tax rate,” CTJ states.
One-third, or 93, of the analyzed companies paid an effective tax rate below 10 percent in that timespan, CTJ found.
The report signals how the most formidable corporate entities in the US take advantage of tax breaks loopholes, and accounting schemes to keep their effective rates down.
Wells Fargo whose major stockholder is Warren Buffet “a Hilary Clinton supporter” received the largest amount of tax subsidies – $21.6 billion – in the five-year period. The banking giant was joined in the top 10 on that list by the likes of AT&T, ExxonMobil, J.P Morgan Chase, and Wal-Mart. About 1 in 11 of the 288 companies paid a zero percent effective federal income tax rate in the five years considered.
“The Bank Giants” are the ones that paid to Bill and Hillary Clinton the exorbitant speaking fees and have been the biggest contributors to her campaign.
Companies are allowed to pay such low federal rates based on factors that include offshore tax sheltering, accelerated asset depreciation based on continued investment, stock options, and industry-specific tax breaks. “Trump Tax Plan” will eliminate most of the loopholes.
The Clintons’ 2015 Tax Returns reveal that Hillary Clinton also reported capital gains losses in order to lessen her tax burden through a “carryover.” Page 17 of the tax returns show “Capital Gains and Losses” for “William J. Clinton & Hillary Rodham Clinton.” The Clintons reported a “Long-term capital loss carryover” of $699,540. Thus, the Clintons reported a “Net long-term capital gain or (loss)” of “-$699,540.”
Donald J. Trump’s tax plan will increase the economy and grow jobs by almost 2 million, while Hillary Clinton’s tax plan will shrink the economy and lose 300,000 jobs. In combination with the total economic reform agenda, the Trump economic plan will create at least 25 million jobs over the next 10 years. (Tax Foundation, Sept. 19, 2016,) [Tax Foundation Jan. 26, 2016
Alfredo A. Gude
Cape Coral