It’s time to shut down the likes of Donald Trump, who game the current tax system to their benefit and pay ZERO in taxes. That’s ZERO for America.
Bernie is going to introduce legislation that does just that. Go Bernie!
www.sanders.senate.gov/...
WASHINGTON, Oct. 4 – Sen. Bernie Sanders (I-Vt.) announced Tuesday he would introduce legislation in the next session of Congress to fix our rigged tax system and close loopholes Donald Trump used to possibly avoid paying federal income taxes for nearly two decades.
“Special tax breaks and loopholes in a corrupt tax code enable billionaires and powerful corporations to avoid paying their fair share of taxes while sticking the burden on the middle class,” Sanders said. “It's time to create a tax system which is fair and which asks the wealthy and powerful to start paying their fair share of taxes.”
Special breaks and loopholes in the tax code favor wealthy real estate investors like Trump and do nothing to boost the economy. These breaks likely made it easier for him to claim losses of $916 million in the 1990s and avoid paying income taxes in subsequent years.
“I will be introducing comprehensive legislation at the beginning of the next session of Congress to do just that,” Sanders said.
www.politicususa.com/…
Here is the list of loopholes that Sen. Sanders is trying to close:
Exemption for real estate from passive loss rules. (Section 469)
The passive loss rules, enacted as part of President Ronald Reagan’s Tax Reform Act of 1986, generally bar taxpayers from using losses from a business the taxpayer is not really involved in to offset active income. An exception was made for real estate, meaning Trump can use his real estate losses to offset any other income, whether it is book royalties or compensation for starring on the Apprentice.
Exemption for real estate from at-risk rules. (Section 465)
Also enacted as part of the Tax Reform Act of 1986, the at-risk rules bar taxpayers from claiming losses for investment beyond the money they put in or that they are directly liable for. Again, real estate was largely exempted, meaning Trump could claim losses exceeding what he actually invested.
Like-kind exchanges. (Section 1031)
Usually, capital gains on property are taxed when the property is sold, but taxpayers can swap pieces of property of the same type and claim that they have no gain to report to the IRS because there was technically no sale. The exchanges are often a sham because they often involve vastly different properties.
Debt and Depreciation.
Under current law, investors can combine tax breaks for borrowing with tax breaks when an investment rapidly loses values. So an investor like Trump can borrow money to make an investment, take deductions for the interest he pays on the debt and take deductions if the property depreciates.