Finally, former President Donald Trump’s tax returns have been released and reveal that in 2020, he paid no tax. In 2016, he only paid $750 in tax.
He was able to do this despite him and his wife Melania earning tens of millions in investment income by offsetting business losses and claiming tax depreciation for the properties he owns.
Tax avoidance is perfectly legal, and Mr Trump did nothing wrong. The IRS reported that they had insufficient resources to carefully examine his estimated 400 business interests.
So why was Mr Trump reluctant to reveal his tax returns as is customary amongst US Presidents?
According to a Democrat spokesperson, this was because he was trying to hide his lack of business acumen.
In terms of comparison with previous Presidents Clinton, GW Bush and Obama, Trump had the highest income but due to efficient tax planning paid the lowest rate of tax.
The comparison also showed that Presidential book writing can be extremely lucrative with previous presidents earning millions from their memoirs.
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