Tax Returns!

While it wasn’t planned, we have decided to discuss the recently leaked 2005 tax returns to help our readers open up some questions regarding the documents which will also make available for download below.

Yesterday 2 pages of Donald Trump’s 2005 Tax Returns were leaked to the media and was reported firstly by MSNBC’s Rachel Maddow (We’ve included a video from MSNBC of Rachel’s coverage).

While the vast majority of the tax return documents have not been included as part of the leak they have been verified by the White House as genuine allow for more credible scrutiny of the content we do have. Firstly Donald Trump recorded roughly $150 Million in income in 2005, including $100 Million of which that come under “Other Income”. According to the IRS, with can include any of the following;

  • Blocked Income
  • Bona Fide Residence Test
  • Coverdell ESA
  • Foreign Earned Income Exclusion
  • Foreign Tax Credit
  • Period of Stay
  • Physical Presence Test
  • Medicaid Waiver Payments
  • Regular Place of Abode
  • Tax Home
  • Worldwide Income
  • Prizes and awards
  • Gambling winnings (including lotteries and raffles)
  • Cash for Keys
  • Jury duty pay
  • Alaska Permanent Fund dividends
  • Nonbusiness credit card debt cancellation

We will not speculate too much about what this “other income” may include, but given President Trump’s large number of overseas properties and businesses, it’s fair to say at least “worldwide income” is the main contributor, but without having more of the Tax Return released we can’t know for sure.

Additionally to this Donald Trump in his joint return with Melania paid $38 Million in Taxes, reassuring that he does pay a large amount in taxes, at least in 2005, however, this suggests a tax rate of 250%, when in 2005 the IRS had a tax rate of 35% for incomes over $326,450 in taxable income, meaning Donald did fail in paying the other 10%, this could be for multiple reasons including being related to the $1 Billion in losses he declared in 1995 which did give him reduced taxes for the following 18 years, which could, therefore, cover the 2005 returns.

So while these tax returns can provide an interesting insight, they still fail to mention any of the topics people are interested in, particularly what exactly this “other income” comes from exactly and what charitable donations he has, or more importantly failed to make. Are leaks like this helpful or do they distract from other problems like Trump’s wiretapping allegations against former President Obama?

Download here: trump2005tax

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