March 15, 2017

Trump Trying to Eliminate the Biggest Tax He Pays: The Alternative Minimum Tax

Newly reported Trump 2005 tax return shows $31 million, out of $37 million total, was paid under the alternative minimum tax – a tax he is trying to kill

 

WASHINGTON, D.C.President Trump’s newly reported 2005 federal tax return shows he is trying to eliminate the one tax that affects him far more than any other: the alternative minimum tax.

Journalist David Cay Johnston revealed a copy of two pages of Trump’s 2005 tax return on MSNBC’s The Rachel Maddow Show last night.

The return shows that Trump paid a total of $36.6 million in federal income taxes on his 2005 income. The vast majority of that total ($31.3 million) was compelled by the alternative minimum tax (AMT), a feature of the tax system designed to ensure that the wealthiest taxpayers cannot use deductions and tax credits to avoid all income taxes. Aside from AMT, Trump paid only $5.3 million in regular taxes and nearly $2 million in self-employment taxes on a total income of about $153 million in 2005.

Trump’s campaign tax plan proposed abolishing the AMT. It is clearly listed as the second item under “The Trump Tax Plan Achieves These Goals.”

“Without the Alternative Minimum Tax, Donald Trump would have paid a lower tax rate in 2005 than the poorest half of Americans—just 3.48%—despite income of more than $150 million. Trump wants to abolish the AMT. Now we know why,” said Americans for Tax Fairness Executive Director Frank Clemente.

“With the release of these two pages of Trump’s 2005 tax returns we learned that he paid federal income taxes in one year. But court documents and news reporting indicate that Trump has paid no such taxes, or very little, in at least five years. Now more than ever, we need a full accounting, which we will only get if the president releases his past tax returns, just as Hillary Clinton did.”

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Americans for Tax Fairness is a diverse coalition of 425 national and state endorsing organizations that collectively represent tens of millions of members. The organization was formed on the belief that the country needs comprehensive, progressive tax reform that results in greater revenue to meet our growing needs. ATF is playing a central role in Washington and in the states on federal tax-reform issues.

MEDIA CONTACT
TJ Helmsetter, Communications Director, Americans for Tax Fairness
thelmstetter@americansfortaxfairness.org