How Trump used loopholes to pay $0 in income tax


The last time Donald Trump's tax returns were made public, it was revealed he had paid zero dollars in income taxes to the federal government, The Washington Post reports. The information was included on a 1981 report by New Jersey gambling regulators, which showed that for at least two years in the 1970s, Trump had used a tax-code loophole to report negative income:
State records show that Trump claimed that his combined income in 1978 and 1979 was negative $3.8 million, allowing him to pay no taxes. A few years earlier, he had told The New York Times he was worth more than $200 million.Tax analysts say it is possible that Trump pays very low income taxes, or no taxes at all, using tactics available to wealthy investors and developers, such as depreciating the value of real estate. [The Washington Post]
Trump has defended his privacy regarding his finances as being "none of your business" and is poised to become the first major party presidential nominee in 40 years to refuse to release his returns. By declining to make the information public, it is unknown how much money Trump makes, gives to charity, or how he uses deductions and shelters to squeeze out of paying taxes. Trump has said before that he fights "very hard to pay as little tax as possible."
"At some point, he could be the tax collector-in-chief. He'd supervise the IRS, making sure all of us live up to our own tax responsibilities," tax policy expert Joe Thorndike told The Washington Post. "People deserve to know ... how a person like that plays the game."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Mitt Romney has previously blasted Trump over his hesitation to release financial information, claiming that Trump's returns could very well be hiding "a bombshell of unusual size."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeva Lange was the executive editor at TheWeek.com. She formerly served as The Week's deputy editor and culture critic. She is also a contributor to Screen Slate, and her writing has appeared in The New York Daily News, The Awl, Vice, and Gothamist, among other publications. Jeva lives in New York City. Follow her on Twitter.
-
Will divisions over trans issue derail Keir Starmer's government?
Today's Big Question Rebellion is brewing following the Supreme Court's ruling that a woman is defined by biological sex under equality law
By Sorcha Bradley, The Week UK
-
Why UK scientists are trying to dim the Sun
In The Spotlight The UK has funded controversial geoengineering techniques that could prove helpful in slowing climate change
By Abby Wilson
-
Gandhi charges: Narendra Modi's 'vendetta' against India's opposition
The Explainer Another episode threatens to spark uproar in the Indian PM's long-running battle against the country's first family
By Harriet Marsden, The Week UK
-
Musk vows DOGE pullback as Tesla profits plunge
Speed Read The Tesla SEO says he will soon step back from government matters to devote more time to the company
By Peter Weber, The Week US
-
IMF sees slump from tariffs, Trump tries to calm markets
Speed Read The International Monetary Fund predicts the U.S. and global economies will slow significantly due to the president's trade war
By Peter Weber, The Week US
-
DHS chief Kristi Noem's purse stolen from eatery
Speed Read Homeland Security Secretary Kristi Noem's purse was stolen while she dined with family at a restaurant in Washington, D.C.
By Peter Weber, The Week US
-
Trump stands by Hegseth amid ouster reports
Speed Read The president dismissed reports that he was on the verge of firing Defense Secretary Pete Hegseth over a second national security breach
By Rafi Schwartz, The Week US
-
Hegseth reportedly shared war plans in 2nd group text
Speed Read The defense secretary sent information about an attack in Yemen to a Signal group chat that included his wife and brother
By Peter Weber, The Week US
-
Judge threatens Trump team with criminal contempt
Speed Read James Boasberg attempts to hold the White House accountable for disregarding court orders over El Salvador deportation flights
By Rafi Schwartz, The Week US
-
Biden slams Trump's Social Security cuts
Speed Read In his first major public address since leaving office, Biden criticized the Trump administration's 'damage' and 'destruction'
By Peter Weber, The Week US
-
El Salvador refuses to return US deportee
Speed Read President Nayib Bukele of El Salvador said he would not send back the unlawfully deported Kilmar Ábrego García
By Peter Weber, The Week US