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      Biden has revived democratic capitalism – and changed the economic paradigm

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      Biden has revived democratic capitalism – and changed the economic paradigmRobert ReichThe president’s domestic successes offer a rebuke to disciples of Reagan: the ‘free market’ has never existed How can inflation be dropping at the same time job creation is soaring?Schools and universities are ground zero for America’s culture war | Moira DoneganRead moreIt has taken one of the oldest presidents in American history, who has been in politics for over half a century, to return the nation to an economic paradigm that dominated public life between 1933 and 1980, and is far superior to the one that has dominated it since.Call it democratic capitalism.The Great Crash of 1929 followed by the Great Depression taught the nation a crucial lesson that we forgot after Ronald Reagan’s presidency: the so-called “free market” does not exist. Markets are always and inevitably human creations. They reflect decisions by judges, legislators and government agencies as to how the market should be organized and enforced – and for whom.The economy that collapsed in 1929 was the consequence of decisions that organized the market for a monied elite, allowing nearly unlimited borrowing, encouraging people to gamble on Wall Street, suppressing labor unions, holding down wages, and permitting the Street to take huge risks with other people’s money.Franklin D Roosevelt and his administration reversed this. They reorganized the market to serve public purposes – stopping excessive borrowing and Wall Street gambling, encouraging labor unions, establishing social security and creating unemployment insurance, disability insurance and a 40-hour workweek. They used government spending to create more jobs. During the second world war, they controlled prices and put almost every American to work.Democratic and Republican administrations enlarged and extended democratic capitalism. Wall Street was regulated, as were television networks, airlines, railroads, and other common carriers. CEO pay was modest. Taxes on the highest earners financed public investments in infrastructure (such as the national highway system) and higher education.America’s postwar industrial policy spurred innovation. The Department of Defense developed satellite communications, container ships and the Internet. The National Institutes of Health did trailblazing basic research in biochemistry, DNA and infectious diseases.Public spending rose during economic downturns to encourage hiring. Even Richard Nixon admitted “we’re all Keynesians”. Antitrust enforcers broke up AT&T and other monopolies. Small businesses were protected from giant chain stores. By the 1960s, a third of all private-sector workers were unionized.Large corporations sought to be responsive to all their stakeholders – not just shareholders but employees, consumers, the communities where they produced goods and services, and the nation as a whole.Then came a giant U-turn. The Opec oil embargo of the 1970s brought double-digit inflation followed by the Fed chair Paul Volcker’s effort to “break the back” of inflation by raising interest rates so high the economy fell into deep recession.All of which prepared the ground for Reagan’s war on democratic capitalism.From 1981, a new bipartisan orthodoxy emerged that the so-called “free market” functioned well only if the government got out of the way (conveniently forgetting that the market required government). The goal of economic policy thereby shifted from public welfare to economic growth. And the means shifted from public oversight of the market to deregulation, free trade, privatization, “trickle-down” tax cuts, and deficit-reduction – all of which helped the monied interests make more money.What happened next? For 40 years, the economy grew but median wages stagnated. Inequalities of income and wealth ballooned. Wall Street reverted to the betting parlor it had been in the 1920s. Finance once again ruled the economy. Spurred by hostile takeovers, corporations began focusing solely on maximizing shareholder returns – which led them to fight unions, suppress wages, abandon their communities and outsource abroad.Corporations and the super-rich used their increasing wealth to corrupt politics with campaign donations – buying tax cuts, tax loopholes, government subsidies, bailouts, loan guarantees, non-bid government contracts and government forbearance from antitrust enforcement, allowing them to monopolize markets.Democratic capitalism, organized to serve public purposes, all but disappeared. It was replaced by corporate capitalism, organized to serve the monied interests.Joe Biden is reviving democratic capitalism.From the Obama administration’s mistake of spending too little to pull the economy out of the Great Recession, he learned that the pandemic required substantially greater spending, which would also give working families a cushion against adversity. So he pushed for the giant $1.9tn American Rescue Plan.This was followed by a $550bn initiative to rebuild bridges, roads, public transit, broadband, water and energy systems. And in 2022, the biggest investment in clean energy in American history – expanding wind and solar power, electric vehicles, carbon capture and sequestration, and hydrogen and small nuclear reactors. This was followed by the largest public investment ever in semiconductors, the building blocks of the next economy.Notably, these initiatives are targeted to companies that employ American workers.Biden has also embarked on altering the balance of power between capital and labor, as did FDR. Biden has put trustbusters at the head of the Federal Trade Commission and the Antitrust Division of the justice department. And he has remade the National Labor Relations Board into a strong advocate of labor unions.Unlike his Democratic predecessors, Biden has not sought to reduce trade barriers. In fact, he has retained several from the Trump administration. But unlike Trump, he has not given a huge tax cut to corporations and the wealthy. It’s also worth noting that in contrast with every president since Reagan, Biden has not filled his White House with former Wall Street executives. Not one of his economic advisers – not even his treasury secretary – is from the Street.I don’t want to overstate Biden’s accomplishments. His ambitions for childcare, eldercare, paid family and medical leave were thwarted by senators Joe Manchin and Kyrsten Sinema. And now he has to contend with a Republican House.Biden’s larger achievement has been to change the economic paradigm that has reigned since Reagan. He is teaching America a lesson we once knew but have forgotten: that the “free market” does not exist. It is designed. It either advances public purposes or it serves the monied interests.Biden’s democratic capitalism is neither socialism nor “big government”. It is, rather, a return to an era when government organized the market for the greater good.
      Robert Reich, a former US secretary of labor, is professor of public policy at the University of California, Berkeley, and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com
      TopicsState of the Union addressOpinionJoe BidenBiden administrationUS politicsDemocratsUS domestic policyUS economycommentReuse this content More

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      Prosecutors likened Trump to mob boss and had to prove he wasn’t insane – book

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      Prosecutors likened Trump to mob boss and had to prove he wasn’t insane – bookMark Pomerantz, who was on New York team investigating tax affairs, reportedly compares ex-president to John Gotti New York prosecutors building a case against Donald Trump for allegedly lying about his wealth for tax purposes had to show the former president was “not legally insane”, one of those prosecutors reportedly writes in an eagerly awaited new book.Why prosecutors might get Trump – and not Biden – for classified documentsRead moreThe lawyer, Mark Pomerantz, also reportedly compares Trump, the only confirmed candidate for the Republican presidential nomination in 2024, to famous figures in the world of organised crime including John Gotti, the “Teflon Don” who died in prison in 2002.In messages seen by the Guardian on Friday, one former Trump administration official called the comparison “unfair to the late Mr Gotti”.Pomerantz was part of attempts by the Manhattan district attorney’s office to build a case against Trump, but quit in February 2022 as the DA, Alvin Bragg, decided not to indict.Pomerantz is now the author of The People vs Donald Trump: An Inside Account, due to be published in the US on Tuesday. The book has angered Bragg, who is still investigating Trump, and the former president, who has threatened to sue.News outlets obtained the book on Friday. The Daily Beast reported Pomerantz’s words about Trump and insanity.“To rebut the claim that Trump believed his own ‘hype’,” Pomerantz writes, the Beast says, “we would have to show, and stress, that Donald Trump was not legally insane.“Was Donald Trump suffering from some sort of mental condition that made it impossible for him to distinguish between fact and fiction?”According to the Beast, Pomerantz writes that lawyers “discussed whether Trump had been spewing bullshit for so many years about so many things that he could no longer process the difference between bullshit and reality”.The New York Times also obtained the book. It reported that Pomerantz says Trump rose to fame and power “through a pattern of criminal activity”.“He demanded absolute loyalty and would go after anyone who crossed him,” Pomerantz reportedly writes. “He seemed always to stay one step ahead of the law. In my career as a lawyer, I had encountered only one other person who touched all of these bases: John Gotti, the head of the Gambino organised crime family.”A lawyer for Trump, Joe Tacopina, told the Times: “Injecting the name John Gotti into this seems like just another desperate attempt by Pomerantz to sell books.”Pomerantz reportedly writes that he considered a racketeering case under New York laws used against mobsters, an idea eventually dropped as too ambitious.Bragg has recently revived the investigation of Trump’s role in a 2016 hush money payment to an adult film star, Stormy Daniels, who claims an affair with Trump that the ex-president denies.The Manhattan DA is reportedly seeking cooperation from Allen Weisselberg, the Trump Organization chief financial officer recently given a five-month jail sentence for tax offences.Trump faces legal jeopardy on numerous other fronts, from his attempts to overturn the 2020 election to his retention of classified documents and a rape allegation by the writer E Jean Carroll, a claim Trump denies. The former president also faces an ongoing civil suit over his financial practices brought by the New York state attorney general, Letitia James.On Friday, Bragg told the Times: “Our skilled and professional legal team continues to follow the facts of this case wherever they may lead, without fear or favor.“Mr Pomerantz decided to quit a year ago and sign a book deal. I haven’t read the book and won’t comment on any ongoing investigation because of the harm it could cause to the case.”Pomerantz denies prejudicing investigations of Trump. According to the Beast, he writes that when he was on the team, prosecutors “had a case, but it was not without issues, and certainly could not be described as a slam dunk”.He also reportedly describes disagreements within Bragg’s team about how to proceed.“It was frustrating to feel like we were about to march into battle and were strapping on our guns and equipment, but when we looked around at the rest of the platoon we saw a lot of conscientious objectors,” Pomerantz reportedly writes.The Times said: “The book’s description of conversations between Mr Pomerantz and Mr Bragg’s team could arguably complicate the investigation. In particular, Mr Pomerantz detailed Mr Bragg’s opposition to using Michael D Cohen, a longtime fixer for Mr Trump who turned on the former president, as a witness, an awkward disclosure now that Mr Cohen may become one of Mr Bragg’s star witnesses.”Cohen was jailed for offences including the payment to Daniels. He said this week he had once again given his phones to investigators.In his book, the Times said, Pomerantz calls Bragg’s investigation “the legal equivalent of a plane crash”, caused by “pilot error”.On Friday, Bragg told the Times: “Mr Pomerantz’s plane wasn’t ready for takeoff.”TopicsBooksDonald TrumpUS politicsUS taxationUS crimeOrganised crimePolitics booksnewsReuse this content More

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      Trump tax returns: key takeaways from the records release

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      AnalysisTrump tax returns: key takeaways from the records releaseAssociated Press in WashingtonThe former president had a bank account in China, failed to donate in 2020 and claims Democrats ‘weaponized’ his taxes In one of its last acts under Democratic control, the House of Representatives on Friday released six years of Donald Trump’s tax returns, dating to 2015, the year he announced his presidential bid.Trump tax returns show China bank account as six years of records releasedRead moreThe thousands of pages of returns were the subject of a prolonged legal battle after Trump broke precedent by not releasing his tax returns while running for, and then occupying, the White House.Here are some key takeaways from a review of the documents:Trump had a bank account in ChinaDuring a 2020 presidential debate, Trump was asked about having a bank account in China. He said he closed it before he began his campaign for the White House four years earlier.“The bank account was in 2013. It was closed in 2015, I believe,” Trump said. “I was thinking about doing a deal in China. Like millions of other people, I was thinking about it. I decided not to do it.”The tax returns contradict that account. Trump reported a bank account in China in his returns for 2015, 2016 and 2017.The returns show accounts in other foreign countries including the UK, Ireland and St Martin in the Caribbean. By 2018, Trump had apparently closed all his overseas accounts other than the one in the UK, home to one of his flagship golf properties.The returns do not detail the amount of money held in those accounts.No reported charitable giving in 2020In the final year of his presidency, Trump reported making no charitable donations. That was in contrast to the prior two years, when Trump reported about $500,000 (£414,060) worth of donations. It is unclear if any of the figures include his pledge to donate his $400,000 presidential salary back to the US government. He reported donating $1.1m in 2016 and $1.8m in 2017.Money from the arts worldTrump collected a $77,808 annual pension from the Screen Actors Guild and a $6,543 pension in 2017 from another film and TV union, and reported acting residuals as high as $14,141 in 2015, according to the tax returns.Trump has made cameo appearances in various movies, notably Home Alone 2: Lost in New York, but his biggest on-screen success came with his reality TV shows The Apprentice and The Celebrity Apprentice.Trump reported paying a little more than $400,000 from 2015 to 2017 in “book writer” fees. In 2015, Trump published the book, Crippled America: How to Make America Great Again, with a ghostwriter. The same year, Trump reporting receiving $750,000 in fees for speaking engagements.Trump vows paybackTrump broke political tradition by not releasing his tax returns as a candidate or as president. Now Republicans warn that Democrats will pay a political price by releasing what is normally confidential information.Trump underscored that in a statement on Friday morning, after his returns were made public.Kayleigh McEnany a ‘liar and opportunist’, says former Trump aide Read more“The great USA divide will now grow far worse,” he said. “The Radical Left Democrats have weaponized everything, but remember, that is a dangerous two-way street!”Republicans on the House ways and means committee, which has jurisdiction over tax matters and released the Trump documents, warned that in the future the committee could release the returns of labor leaders or supreme court justices. Democrats countered with a proposal to require the release of tax returns by any presidential candidate – legislation that is unlikely to pass, given that Republicans take control of the House next week.Republicans cannot disclose Joe Biden’s tax returns – because they are already public. Biden resumed the longstanding bipartisan tradition of releasing his tax records, disclosing 22 years’ worth of filings during his 2020 campaign.TopicsDonald TrumpTrump administrationUS politicsUS taxationUS CongressHouse of RepresentativesDemocratsanalysisReuse this content More

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      Trump says tax returns release will ‘lead to horrible things for so many people’ – as it happened

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      Donald Trump has responded to the release of his tax returns by Democrats on the House ways and means committee, saying that they “show how proudly successful I have been”.In a statement released by his campaign, Trump pushed back against the move, saying: “The Democrats should have never done it, the supreme court should have never approved it, and it’s going to lead to horrible things for so many people.”He continued: “The great USA divide will now grow far worse. The radical, left Democrats have weaponized everything, but remember, that is a dangerous two-way street!“The ‘Trump’ tax returns once again show how proudly successful I have been and how I have been able to use depreciation and various other tax deductions as an incentive for creating thousands of jobs and magnificent structures and enterprises.”It’s nearly 4pm in Washington DC. Here is a round-up of today’s developments on Trump’s tax returns and more:
      Despite Trump previously pledging that he would forgo his $400,000 salary if he became president, his tax returns indicate otherwise. According to Trump’s tax returns, he reported $0 in charitable giving in 2020 – his last year in office. In 2017, Trump donated $1.8 million and approximately half a million dollars in 2018 and 2019 each.
      The Biden administration on Friday finalized regulations to protect hundreds of thousands of streams, wetlands and other waterways across the country. The new rules repeal a Trump-era rule federal courts threw out and environmentalists said left waterways vulnerable to pollution.
      In addition to listing China as a foreign country that had a Trump-tied bank account, Trump also listed business income, taxes and expenses in several other countries on his tax returns. Those include Israel, Mexico, United Arab Emirates, India, Qatar, Panama, Puerto Rico, the Philippines, South Korea and Brazil, among others.
      Texas Democratic representative Lloyd Doggett has responded to the release of Tump’s tax returns, saying that “Americans should be outraged” by how little the former president paid in federal taxes in recent years.“I think it’s really outrageous… Here is the most powerful man in the world, the self-described clever genius who brags of his wealth almost daily and he did not pay taxes that the most modest wage earner in this country would pay,” he told MSNBC.
      Daniel Goldman, now a congressman-elect from New York but in a former role lead Democratic counsel in Donald Trump’s first impeachment, has a question about what the Trump tax returns released today show: “Trump had bank accounts in China while he was in office until 2018. Generally, you only have bank accounts in a foreign country if you are doing transactions in that country’s currency.”
      President Joe Biden is granting full pardons to six people, the White House has announced. In a statement released on Friday, a White House spokesperson said that the pardons are for six individuals “who have served their sentences and have demonstrated a commitment to improving their communities and the lives of those around them.”
      On Thursday, in a recount triggered by the closeness of the first count, the Democratic candidate for attorney general, Kris Mayes, was declared the winner for a second time, beating the Republican candidate, Abe Hamadeh. As the Associated Press reports, though, Mayes won the recount by less than she won the first count, finishing “280 votes ahead … down from a lead of 511 in the original count [with] the reason for the discrepancy not immediately clear.”
      Donald Trump’s tax returns indicate that he held overseas bank accounts while he was president. One page of the returns indicate the United Kingdom, Ireland, China and Saint Martin as foreign countries where Trump’s financial accounts were located. Tax records reviewed by the New York Times in 2020 revealed that Trump paid nearly $200,000 in taxes to China, according to the outlet.
      The House ways and means Republican leader Kevin Brady of Texas has responded to the release of Donald Trump’s tax returns, calling it a a “political weapon” and a “regrettable stain.” “Going forward, all future Chairs of both the House Ways and Means Committee and the Senate Finance Committee will have nearly unlimited power to target and make public the tax returns of private citizens, political enemies, business and labor leaders or even the Supreme Court justices themselves,” he said.
      Democratic representative Don Beyer of Virginia has compared Donald Trump to former president Richard Nixon in light of Trump’s tax returns release. In a statement released on Friday regarding Trump’s returns, Beyer, who sits on the House ways and means committee, said: “Despite promising to release his tax returns, Donald Trump refused to do so, and abused the power of his office to block basic transparency on his finances and conflict of interest which no president since Nixon has foregone.”
      Donald Trump has responded to the release of his tax returns by Democrats on the House ways and means committee, saying that they “show how proudly successful I have been”. In a statement released by his campaign, Trump pushed back against the move, saying: “The Democrats should have never done it, the supreme court should have never approved it, and it’s going to lead to horrible things for so many people.” He continued: “The great USA divide will now grow far worse. The radical, left Democrats have weaponized everything, but remember, that is a dangerous two-way street!”
      The release of Donald Trump’s tax returns follows a congressional report released earlier this month that revealed that Trump and his wife Melania did not pay any federal income tax in 2020. The report also found for a few years, the couple reported negative income and little or no tax liability. In addition, it found that the Internal Revenue Service failed to carry out mandatory audits of Trump during his first two years as president.
      House Democrats have released former president Donald Trump’s tax returns that span over six years. The release of the returns marks the latest blow for Trump who was impeached twice by the Democratic-led House and was later acquitted by the Senate. In a written statement, Representative Richard E. Neal of Massachusetts, the chairman of the Ways and Means Committee said, “Our findings turned out to be simple — I.R.S. did not begin their mandatory audit of the former president until I made my initial request,” the New York Times reports.
      An Arizona man who participated in the January 6 riots told the January 6th Select Committee that the “crazy” conspiracy theories about him working with the government has deeply affected his life. In an interview released on Thursday, Ray Epps told the committee that he has received death threats and that his grandchildren were bullied at school following far-right conspiracy theories that he was working for the FBI.“The only time I’ve been involved with the government was when I was a Marine in the United States Marine Corps,” Epps, who was a supporter of Donald Trump, said.
      Donald Trump’s former communications director has called Kayleigh McEnany, Trump’s last White House press secretary a “liar and an opportunist.” According to testimony released on Thursday, Alyssa Farah Griffin was asked by the January 6th Select Committee where McEnany “fell” after the 2020 election. In response, Farah Griffin said, “I’m a Christian woman…so I will say this. Kayleigh is a liar and an opportunist.”
      That’s it from me, Maya Yang, as we end today’s live blog on the politics of Capitol Hill and beyond. Have a great weekend! Despite Trump previously pledging that he would forgo his $400,000 salary if he became president, his tax returns indicate otherwise.According to Trump’s tax returns, he reported $0 in charitable giving in 2020 – his last year in office.In 2017, Trump donated $1.8 million and approximately half a million dollars in 2018 and 2019 each, the tax returns indicate.The Biden administration on Friday finalized regulations to protect hundreds of thousands of streams, wetlands and other waterways across the country.The Associated Press reports: The new rules repeal a Trump-era rule federal courts threw out and environmentalists said left waterways vulnerable to pollution.The rule defines which “waters of the United States” are protected by the Clean Water Act. For decades, the term has been a flashpoint between environmental groups that want to broaden limits on pollution and farmers, builders and industry groups that say extending regulations too far is onerous for business.The Environmental Protection Agency (EPA) and the Department of the Army said the reworked rule was based on definitions in place before 2015. Federal officials said they wrote a “durable definition” of waterways to reduce uncertainty.More from the Associated Press here:Biden administration drafts new rules to protect streams and wetlandsRead moreHere’s some interesting lunchtime reading from Andrew Lawrence about Maxwell Frost, the Florida congressman-elect who is set to become the first Gen Z member of Congress. Safe to say, Frost’s move to Washington has not proved entirely smooth sailing…When the Guardian last visited 25-year-old Maxwell Alejandro Frost, in September, he was campaigning to become the first Gen Z member of the US Congress, and driving Uber shifts to make ends meet in the meantime. In early November he defeated his Republican rival, Calvin Wimbish, by a considerable margin, winning 59% of the vote in Florida’s 10th congressional district, which includes Orlando and many of its surrounding theme parks.Frost’s life has only become messier since. Chiefly, he has yet to sort out his living accommodation in Washington DC, and must decide whether to keep paying rent for the Orlando home he shares with two others, as well as working out how to foot these bills until his $174,000 (£142,000) federal salary kicks in. He says: “I’ll probably crash on someone’s couch in DC for the first month at least.”Even finding potential roommates among his fellow representatives brings unforeseen challenges for the congressman-elect, who has been back and forth for freshman orientations. “A lot of people are looking to get their roommates before 3 January,” says Frost. “I just can’t operate on that timeline. Even after I start getting paid it’s not like I’m flush in one day. I have a lot of debt.” Earlier this month he vented on Twitter about being turned down for a DC apartment due to bad credit: “This ain’t meant for people who don’t already have the money,” he wrote.Read on:‘I’ll be crashing on someone’s couch till I get paid’: life as the first Gen Z congressmanRead moreIn addition to listing China as a foreign country that had a Trump-tied bank account, Trump also listed business income, taxes and expenses in several other countries on his tax returns. Those include Israel, Mexico, United Arab Emirates, India, Qatar, Panama, Puerto Rico, the Philippines, South Korea and Brazil, among others. In response to the release, Democratic representative Raja Krishnamoorthi of Illinois tweeted: .css-cumn2r{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}“Releasing six years’ worth of Donald Trump’s tax returns…should help us understand any connections to foreign entities that may have influenced his decision-making as president.”Releasing six years’ worth of Donald Trump’s tax returns ensures transparency with the American people, and should help us understand any connections to foreign entities that may have influenced his decision-making as president. https://t.co/4jqYmofdf9— Congressman Raja Krishnamoorthi (@CongressmanRaja) December 30, 2022
      Texas Democratic representative Lloyd Doggett has responded to the release of Tump’s tax returns, saying that “Americans should be outraged” by how little the former president paid in federal taxes in recent years. .css-cumn2r{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}“I think it’s really outrageous…both with regard to Trump personally and with regard to Trump’s Internal Revenue Service administration. Here is the most powerful man in the world, the self-described clever genius who brags of his wealth almost daily and he did not pay taxes that the most modest wage earner in this country would pay,” Doggett told MSNBC.
      “Nothing in one year, $75o dollars a year and others, all of this related to claims for big losses, big deductions, big credits, taking advantage of every loophole and because of the sorry job that Trump’s IRS did, we don’t know how many of these were legal loopholes, for the rich and how many of them were unjust and illegal” he said, adding, “Americans should be outraged by that.” “Here is the most powerful man in the world…and he did not pay the taxes that the most modest wage earner in this country would pay…Americans should be outraged by that”: Rep. Lloyd Doggett on Trump’s tax returns. pic.twitter.com/dWLS2FMpxo— MSNBC (@MSNBC) December 30, 2022
      Daniel Goldman, now a congressman-elect from New York but in a former role lead Democratic counsel in Donald Trump’s first impeachment, has a question about what the Trump tax returns released today show:.css-cumn2r{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}Trump had bank accounts in China while he was in office until 2018. Generally, you only have bank accounts in a foreign country if you are doing transactions in that country’s currency.
      What business was Trump doing in China while he was president?On the subject of Republicans, China and investment arrangements, here’s some further reading from the Guardian’s Lloyd Green:American muckrakers: Peter Schweizer, James O’Keefe and a rightwing full court pressRead moreOur Washington bureau chief, David Smith, and Sam Levine have filed their first report on today’s main politics news, the release of Donald Trump’s tax returns.Six years of Donald Trump’s tax returns were made public by a congressional panel on Friday, ending the former president’s long-running effort to break precedent and keep them secret.The returns date from 2015 to 2020 and span nearly 6,000 pages, including more than 2,700 pages of individual returns from Trump and his wife, Melania, and more than 3,000 pages from Trump’s businesses. Sensitive information such as social security and bank account numbers have been redacted.A House of Representatives report released earlier this month analyzed the documents and showed Trump and his wife Melania paid no federal income tax in 2020, the last full year he was in office. From 2015 to 2020, Donald and Melania Trump had several years in which they reported negative income and little or no tax liability.The report also found that the Internal Revenue Service (IRS) failed to conduct mandatory audits of Trump during his first two years in office. By contrast, there were audits of Joe Biden for the 2020 and 2021 tax years, according to the White House.Richard Neal, the Democratic chairman of the ways and means committee, said in a statement: “A president is no ordinary taxpayer. They hold power and influence unlike any other American. And with great power comes even greater responsibility.”He added: “We anticipated the IRS would expand the mandatory audit program to account for the complex nature of the former president’s financial situation yet found no evidence of that. This is a major failure of the IRS under the prior administration, and certainly not what we had hoped to find.”Full story:Six years of Donald Trump’s tax returns made public by US House panelRead morePresident Joe Biden is granting full pardons to six people, the White House has announced.In a statement released on Friday, a White House spokesperson said that the pardons are for six individuals “who have served their sentences and have demonstrated a commitment to improving their communities and the lives of those around them.”.css-cumn2r{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}“President Biden believes America is a nation of second chances, and that offering meaningful opportunities for redemption and rehabilitation empowers those who have been incarcerated to become productive, law-abiding members of society,” the statement added.
      “The President remains committed to providing second chances to individuals who have demonstrated their rehabilitation – something that elected officials on both sides of the aisle, faith leaders, civil rights advocates, and law enforcement leaders agree our criminal justice system should offer.”The pardoned group include individuals who served in the US military, survived domestic abuse, and volunteer in their communities.More elections news from Arizona, a swing state where pro-Trump Republicans have of late caused a lot of trouble with claims of electoral fraud in races in which they were beaten.On Thursday, in a recount triggered by the closeness of the first count, the Democratic candidate for attorney general, Kris Mayes, was declared the winner for a second time, beating the Republican candidate, Abe Hamadeh.As the Associated Press reports, though, Mayes won the recount by less than she won the first count, finishing “280 votes ahead … down from a lead of 511 in the original count [with] the reason for the discrepancy not immediately clear”.In a statement, Mayes said she was “excited and ready to get to work as your next attorney general and vow to be your lawyer for the people”.The AP continues:.css-cumn2r{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}“Outside court, Mayes attorney Dan Barr said the results should give the public confidence in elections, despite the adjustments in vote totals as a result of the recount.
      ‘They didn’t just do a rubber stamp of what it was,’ Barr said. ‘They did a careful evaluation of the votes and they came up with a different result. And so I think people should have a lot of confidence in the process.’
      Hamadeh said the discrepancies in the latest results from his race were shockingly high. ‘My legal team will be assessing our options to make sure every vote is counted,’ he said. Hamadeh hasn’t conceded to Mayes.The Arizona governor’s race was also close, but not close enough to trigger a recount. The Democratic candidate, Katie Hobbs, won it, by a little more than 17,000 votes. The Republican candidate – the pro-Trump election denier Kari Lake – went to court over her defeat, but lost.Some further reading:Arizona judge declines to sanction Kari Lake for lawsuit challenging electionRead moreDonald Trump’s tax returns indicate that he held overseas bank accounts while he was president. One page of the returns indicate the United Kingdom, Ireland, China and Saint Martin as foreign countries where Trump’s financial accounts were located. A bank account in China.#TrumpTaxReturns pic.twitter.com/CLdBvFhK9U— David Corn (@DavidCornDC) December 30, 2022
      Tax records reviewed by the New York Times in 2020 revealed that Trump paid nearly $200,000 in taxes to China, according to the outlet. During the 2020 presidential campaign, Trump accused his oppponent Joe Biden of being “weak on China” and claimed that the Biden family was “selling out our country” to China. The House ways and means Republican leader Kevin Brady of Texas has responded to the release of Donald Trump’s tax returns, calling it a a “political weapon” and a “regrettable stain.”In a statement issued on Friday, Brady said: .css-cumn2r{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}“With the publicly released transcript of Democrats’ secret executive session, Americans now have confirmation that there was never a legislative purpose behind the public release of these confidential records and that the IRS was conducting audits prior to Democrats’ request.
      “Despite these facts, Democrats have charged forward with an unprecedented decision to unleash a dangerous new political weapon that reaches far beyond the former president, overturning decades of privacy protections for average Americans that have existed since Watergate.
      “Going forward, all future Chairs of both the House Ways and Means Committee and the Senate Finance Committee will have nearly unlimited power to target and make public the tax returns of private citizens, political enemies, business and labor leaders or even the Supreme Court justices themselves.
      “This is a regrettable stain on the Ways and Means Committee and Congress, and will make American politics even more divisive and disheartening. In the long run, Democrats will come to regret it.”Democratic representative Don Beyer of Virginia has compared Donald Trump to former president Richard Nixon in light of Trump’s tax returns release. In a statement released on Friday regarding Trump’s returns, Beyer, who sits on the House ways and means committee, said: .css-cumn2r{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}“Despite promising to release his tax returns, Donald Trump refused to do so, and abused the power of his office to block basic transparency on his finances and conflict of interest which no president since Nixon has foregone.” Beyer went on to add: .css-cumn2r{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}“Trump acted as though he had something to hide, a pattern consistent with the recent conviction of his family business for criminal tax fraud. As the public will now be able to see, Trump used questionable or poorly substantiated deductions and a number of other tax avoidance schemes as justification to pay little or no federal income tax in several of the years examined.” Donald Trump has responded to the release of his tax returns by Democrats on the House ways and means committee, saying that they “show how proudly successful I have been”.In a statement released by his campaign, Trump pushed back against the move, saying: “The Democrats should have never done it, the supreme court should have never approved it, and it’s going to lead to horrible things for so many people.”He continued: “The great USA divide will now grow far worse. The radical, left Democrats have weaponized everything, but remember, that is a dangerous two-way street!“The ‘Trump’ tax returns once again show how proudly successful I have been and how I have been able to use depreciation and various other tax deductions as an incentive for creating thousands of jobs and magnificent structures and enterprises.”The release of Donald Trump’s tax returns follows a congressional report released earlier this month that revealed that Trump and his wife Melania did not pay any federal income tax in 2020.The report also found for a few years, the couple reported negative income and little or no tax liability.In addition, it found that the Internal Revenue Service failed to carry out mandatory audits of Trump during his first two years as president.For more details, read Sam Levine’s reporting here:Donald Trump’s tax returns released by US House committeeRead moreTrump previously responded to the committee’s decision to release his returns, calling it an “outrageous abuse of power”..css-cumn2r{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}“There is no legitimate legislative purpose for their action. And if you look at what they’ve done, it’s so sad for our country,” he said, adding, “It’s nothing but another deranged political witch hunt which has been going on from the day I came down an escalator in Trump Tower.”House Democrats have released former president Donald Trump’s tax returns that span over six years. The release of the returns marks the latest blow for Trump who was impeached twice by the Democratic-led House and was later acquitted by the Senate. In a written statement, Representative Richard E. Neal of Massachusetts, the chairman of the Ways and Means Committee said, “Our findings turned out to be simple — I.R.S. did not begin their mandatory audit of the former president until I made my initial request,” the New York Times reports.Stay tuned for more details as we review the returns. An Arizona man who participated in the January 6 riots told the January 6th Select Committee that the “crazy” conspiracy theories about him working with the government has deeply affected his life. In an interview released on Thursday, Ray Epps told the committee that he has received death threats and that his grandchildren were bullied at school following far-right conspiracy theories that he was working for the FBI. .css-cumn2r{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}”The only time I’ve been involved with the government was when I was a Marine in the United States Marine Corps,” Epps, who was a supporter of Donald Trump, said. .css-cumn2r{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}“We had a tour bus come by our home and our business with all these whacked out people in it…There are good people out there that was in Washington. Those aren’t the people that’s coming by our house. This attracts — when they do this sort of thing, this attracts all the crazies out there,” he added. In his interview, Epps identified Republican representatives including Kentucky’s Thomas Massie, Florida’s Matt Gaetz and Georgia’s Marjorie Taylor Greene as congress members who helped spread the conspiracy theories about him. .css-cumn2r{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}“I mean, it’s real crazy stuff, and [Massie] brought that kind of stuff to the floor of the House. When that happened, it just blew up. It got really, really bad…Him and, gosh, Gaetz and Greene, and, yeah, they’re just blowing this thing up. So it got really, really difficult after that. The crazies started coming out of the woodwork.”Donald Trump’s former communications director has called Kayleigh McEnany, Trump’s last White House press secretary a “liar and an opportunist.”According to testimony released on Thursday, Alyssa Farah Griffin was asked by the January 6th Select Committee where McEnany “fell” after the 2020 election.In response, Farah Griffin said, “I’m a Christian woman…so I will say this. Kayleigh is a liar and an opportunist.”Farah Griffin went on to add that McEnany was a “smart woman” and “not an idiot.”.css-cumn2r{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}“She knew we lost the election, but she made a calculation that she wanted to have a certain life post-Trump that required staying in his good graces. And that was more important to her than telling the truth to the American public.”For more details on Farah Griffin’s testimony, check out Martin Pengelly’s reporting here:Kayleigh McEnany a ‘liar and opportunist’, says former Trump aide Read moreGood morning, Guardian readers!The House ways and means committee is scheduled to release the former president’s tax returns today, after the panel’s vote last week.The documents are expected to include Trump’s tax returns from 2015 to 2021 and will be the first formal release of his financial records from his time as president. Last month, the Democrat-controlled committee obtained the returns as part of an investigation into Trump’s taxes, following a lengthy court battle that resulted in the supreme court ruling in the committee’s favor.The committee’s report released last week revealed its findings that the Internal Revenue Service broke its own rules by not auditing Trump for three of the four years of his presidency. As a presidential candidate in 2016, Trump broke decades of precedent by refusing to release his tax returns.We will be bringing you the latest updates surrounding the release, so stay tuned. More

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      Trump tax returns show China bank account as six years of records released

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      Trump tax returns show China bank account as six years of records releasedReturns date from 2015 to 2020 and span nearly 6,000 pages as former president rails against effort by ‘radical left Democrats’ Six years of Donald Trump’s tax returns were made public by a congressional committee on Friday, ending the former president’s long-running effort to break precedent and keep them secret.Trump says tax returns release will ‘lead to horrible things for so many people’ – liveRead moreThe documents, dating from 2015 to 2020, offer insights into the complex finances and foreign bank accounts of a man who was accused of abusing the presidency for personal profit and who has already announced another bid for the White House.A House of Representatives report released earlier this month analyzed the documents and showed Trump and his wife Melania paid no federal income tax in 2020, the last full year he was in office.The couple paid $641,931 in federal income taxes in 2015, the year Trump began his campaign for president. They paid $750 in 2016 and 2017, nearly $1m in 2018, $133,445 in 2019 and $0 in 2020, the year Trump unsuccessfully sought re-election.Such numbers reflect heavy business losses and undermine Trump’s self-perpetuated narrative of commercial wealth and success – a crucial part of his brand during his successful 2016 campaign.Trump reported bank accounts in Britain, China and Ireland from 2015 to 2017, and from 2018 only reported a bank account in Britain.During a presidential debate in 2020, Trump said the Chinese account “was closed in 2015, I believe” and insisted: “I closed it before I even ran for president, let alone became president.”Responding to the release on Friday, Daniel Goldman, a congressman-elect from New York who was counsel to House Democrats in Trump’s first impeachment, said: “Generally, you only have bank accounts in a foreign country if you are doing transactions in that country’s currency. What business was Trump doing in China while he was president?”The returns also show Trump claimed foreign tax credits for taxes paid on business ventures around the world, including licensing arrangements for the use of his name on development projects and his golf courses in Scotland and Ireland.During his first three years in office, Trump apparently fulfilled his campaign promise to give his salary to charity. But in 2020, he reported $0 in charitable giving.The returns span nearly 6,000 pages, including more than 2,700 pages of individual returns from Trump and Melania and more than 3,000 pages from Trump’s businesses. Sensitive information such as social security and bank account numbers have been redacted.Trump responded angrily to their release, saying in a statement: “The Democrats should have never done it, the supreme court should have never approved it, and it’s going to lead to horrible things for so many people. The great USA divide will now grow far worse. The Radical Left Democrats have weaponized everything, but remember, that is a dangerous two-way street!”Defending his business record, he added: “The ‘Trump’ tax returns once again show how proudly successful I have been and how I have been able to use depreciation and various other tax deductions as an incentive for creating thousands of jobs and magnificent structures and enterprises.”The congressional report published last week also found that the Internal Revenue Service (IRS) failed to conduct mandatory audits of Trump in his first two years in office. By contrast, there were audits of Joe Biden for the 2020 and 2021 tax years, according to the White House.Richard Neal, the Democratic chairman of the ways and means committee, said in a statement on Friday: “A president is no ordinary taxpayer. They hold power and influence unlike any other American. And with great power comes even greater responsibility.“We anticipated the IRS would expand the mandatory audit program to account for the complex nature of the former president’s financial situation yet found no evidence of that. This is a major failure of the IRS under the prior administration, and certainly not what we had hoped to find.”Trump’s finances have been shrouded in mystery since the 1980s and his days as a New York property developer. In 2016, he became the first major-party candidate for president in four decades to refuse to release his tax returns. He continued to do so in office.In 2019, the House ways and means committee, which has the authority to see any taxpayer’s federal returns, requested the documents from the treasury department. The Trump administration refused to provide them, setting off a three-year legal battle. In November, the supreme court ruled that the committee could access the returns.Last week, the committee decided in a party-line vote to make the returns public. Democrats argued that transparency and the rule of law were at stake. Republicans said the release would set a dangerous precedent with regard to privacy protections.Don Beyer, a Virginia Democrat, presided over a pro forma House session on Friday as the returns were released, days before Democrats cede control to Republicans.Beyer said: “Despite promising to release his tax returns, Donald Trump refused to do so, and abused the power of his office to block basic transparency on his finances and conflicts of interest which no president since Nixon has foregone.“Trump acted as though he had something to hide, a pattern consistent with the recent conviction of his family business for criminal tax fraud. As the public will now be able to see, Trump used questionable or poorly substantiated deductions and a number of other tax avoidance schemes as justification to pay little or no federal income tax in several of the years examined.”Kevin Brady of Texas, the ranking Republican, condemned the move, saying: “This is a regrettable stain on the ways and means committee and Congress, and will make American politics even more divisive and disheartening. In the long run, Democrats will come to regret it.”Trump stalled efforts to put his taxes in the public domain. Running for president in 2016, he promised to release them once he had been audited. But later that year he appeared to take pride in not paying taxes.Kayleigh McEnany a ‘liar and opportunist’, says former Trump aide Read moreDuring a presidential debate, his Democratic opponent, Hillary Clinton, said: “The only years that anybody’s ever seen were a couple of years when he had to turn them over to state authorities when he was trying to get a casino license, and they showed he didn’t pay any federal income tax.”Trump replied: “That makes me smart.”But in 2018 the New York Times reported leaked records that showed Trump received a modern-day equivalent of at least $413m from his father’s property holdings, much of it coming from “tax dodges” in the 1990s.In 2020 the paper showed Trump paid just $750 in federal income taxes in 2017 and 2018, and no income taxes at all in 10 of 15 years because he generally lost more than he made.Trump continues to face major scrutiny about his business practices. Earlier this month, a New York jury found the Trump Organization guilty of 17 counts of criminal tax fraud. Though Trump was not part of the trial, prosecutors said he was aware of the off-the-books practices at issue. Lawyers for the Trump Organization blamed Allen Weisselberg, the longtime chief financial officer.The New York attorney general, Letitia James, is suing Trump for fraud related to inflating his net worth. Trump and his company have denied wrongdoing.TopicsDonald TrumpMelania TrumpUS taxationRepublicansUS politicsUS CongressnewsReuse this content More

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      Republicans calling Trump’s tax returns ‘private’ don’t understand privacy | Jan-Werner Müller

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      Republicans calling Trump’s tax returns ‘private’ don’t understand privacyJan-Werner MüllerThe Trump years demonstrated that the norm of presidential candidates voluntarily releasing their returns is too weak Donald Trump’s biggest worries right now might not be about Congress having released six years of his tax returns. But it is an issue where Republicans can comfortably have it both ways: please Trump’s base, as they loudly perform indignation about Democrats’ conduct, even as they cease defending a politically weakened Trump against the charges of the January 6 committee.The Republican party has all but said that they will play tit-for-tat in the new Congress – investigations, impeachments, whatever it takes to troll Democrats and distract the public with political theater, as Republicans are unlikely to make good on campaign promises. Hence it is crucial to understand what made the release of Trump’s tax returns legitimate – and why Trump cannot appeal to privacy as a trump card – and why we must also put rules in place to prevent political witch-hunts.Kevin Brady – the top Republican on the House ways and means committee, which voted along partisan lines to release the returns – has warned that “the era of political targeting, and of Congress’s enemies list, is back and every American, every American taxpayer, who may get on the wrong side of the majority in Congress is now at risk.” Democrats, he alleges, have created “a dangerous new political weapon that overturns decades of privacy protections”.But in what sense is privacy really at stake here? Privacy is ultimately the right to control what is known about us. That right is not absolute, but it is crucial for developing intimate relationships, for experimenting with new ways of life, and, sometimes, for making a new start in circumstances when we need the luxury of appearing to others as strangers. Privacy matters for our lives with our nearest and dearest (while many legal theorists thought the right to abortion should not be justified as a matter of privacy, few would say there is no link at all); but it can also afford us anonymity, a key element in the arch-American enterprise of self-reinvention.This understanding contrasts with a conventional view according to which particular areas of life are automatically deemed private. Feminists spent decades arguing that the family should not be a black box such that everything happening inside it would remain unknown to outsiders, including the state. After all, deploying the private-public distinction this way enabled abuse of women and children by men who could deploy privacy as both shield and sword to cut down any criticism.In the same manner, it is a mistake to declare taxes automatically private. To be sure, people have a legitimate interest in not having their neighbors know their income, or the peculiar items they claim as deductions. But – unlike with intimate knowledge that really only a chosen few should know (such that sharing that knowledge is precisely a sign of intimacy) – most of us don’t mind that civil servants know something about us most other people don’t know. And that is because bureaucrats, unlike our neighbors, take no particular interest in us as individuals.Most of us happen not to be public figures. Public figures voluntarily give up some control over what is known about them – in fact, plenty of self-promoting celebrities force more information on us than we really care to know. But even public figures have an interest in privacy. After a recording was leaked, the whole world gawked at the Finnish prime minister, Sanna Marin, dancing and singing this summer, in a setting she had every reason to assume was private. She was right to complain about the leaked recording, and the (horrendously misogynist, needless to say) comments denying her the right to some private fun and release were wrong.Yet politicians wield the levers of state power in a democracy and are accountable to us in a way simply not true of pop stars and other famous figures. (Supreme court justices are an interesting case in-between.) The norm that presidential candidates release their tax returns is not about citizens’ nosiness, but their rightful concerns that powerful beings might be beholden to corporations and foreign powers – all red flags in Trump’s case in particular, of course.This rationale is not new. Nixon’s returns were analyzed by Congress; the Carter administration introduced mandatory audits of sitting presidents and vice-presidents. The Trump years demonstrate two things: that the informal norm of presidential candidates releasing returns is too weak, and that the system of mandatory auditing is not working.Both failed in the face of Trump. Trump appears not to have personally prevented the auditing during the first years of his presidency – but then again, that’s how autocracy works: underlings know what is expected without being told.Congress should pass laws to ensure both transparency and proper auditing of the most powerful in politics; none of that would have pernicious implications for other citizens, even fabulously famous ones.
      Jan-Werner Mueller teaches at Princeton and is a Guardian US columnist. His most recent book is Democracy Rules
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      Trump, Bankman-Fried and Musk are the monsters of American capitalism | Robert Reich

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      Trump, Bankman-Fried and Musk are the monsters of American capitalismRobert ReichFor them, and for everyone who still regards them as heroes, there is no morality in business or economics. The winnings go to the most ruthless If this past week presents any single lesson, it’s the social costs of greed. Capitalism is premised on greed but also on guardrails – laws and norms – that prevent greed from becoming so excessive that it threatens the system as a whole.Yet the guardrails can’t hold when avarice becomes the defining trait of an era, as it is now. Laws and norms are no match for the possibility of raking in billions if you’re sufficiently ruthless and unprincipled.Donald Trump’s tax returns, just made public, reveal that he took bogus deductions to reduce his tax liability all the way to zero in 2020. All told, he reported $60m in losses during his presidency while continuing to pull in big money.Every other president since Nixon has released his tax returns. Trump told America he couldn’t because he was in the middle of an IRS audit. But we now learn that the IRS never got around to auditing Trump during his first two years in office, despite being required to do so by a law dating back to Watergate, stating that “individual tax returns for the president and the vice-president are subject to mandatory review”.Of course, Trump is already synonymous with greed and the aggressive violation of laws and norms in pursuit of money and power. Worse yet, when a president of the United States exemplifies – even celebrates – these traits, they leach out into society like underground poison.Meanwhile, this past week the SEC accused Sam Bankman-Fried of illicitly using customer money from FTX from the beginning to fund his crypto empire.“From the start, contrary to what FTX investors and trading customers were told, Bankman-Fried, actively supported by Defendants, continually diverted FTX customer funds … and then used those funds to continue to grow his empire, using billions of dollars to make undisclosed private venture investments, political contributions, and real estate purchases.”If the charge sticks, it represents one of the largest frauds in American history. Until recently, Bankman-Fried was considered a capitalist hero whose philanthropy was a model for aspiring billionaires (he and his business partner also donated generously to politicians).But like the IRS and Trump, the SEC can’t possibly remedy the social costs that Bankman-Fried has unleashed – not just losses to customers and investors but a deepening distrust and cynicism about the system as a whole, the implicit assumption that this is just what billionaires do, that the way to make a fortune is to blatantly disregard norms and laws, and that only chumps are mindful of the common good.Which brings us to Elon Musk, whose slash-and-burn maneuvers at Twitter might cause even the most rabid capitalist to wince. They also raise questions about Musk’s other endeavor, Tesla. Shares in the electric vehicle maker dropped by almost 9% on Thursday as analysts grew increasingly concerned about its fate. Not only is Musk neglecting the carmaker but he’s appropriating executive talent from Tesla to help him at Twitter. (Tesla stock is down over 64% year-to-date.)Musk has never been overly concerned about laws and norms (you’ll recall that he kept Tesla’s factory in Fremont, California, going during the pandemic even when public health authorities refused him permission to do so, resulting in a surge of Covid infections among workers). For him, it’s all about imposing his gargantuan will on others.Trump, Bankman-Fried and Musk are the monsters of American capitalism – as much products of this public-be-damned era as they are contributors to it. For them, and for everyone who still regards them as heroes, there is no morality in business or economics. The winnings go to the most ruthless. Principles are for sissies.But absent any moral code, greed is a public danger. Its poison cannot be contained by laws or accepted norms. Everyone is forced to guard against the next con (or else pull an even bigger con). Laws are broken whenever the gains from breaking them exceed the penalties (multiplied by the odds of getting caught). Social trust erodes.Adam Smith, the so-called father of modern capitalism, never called himself an economist. He called himself a “moral philosopher,” engaged in discovering the characteristics of a good society. He thought his best book was not The Wealth of Nations, the bible of modern capitalist apologists, but the Theory of Moral Sentiments, where he argued that the ethical basis of society lies in compassion for other human beings.Presumably Adam Smith would have bemoaned the growing inequalities, corruption, and cynicism spawned by modern capitalism and three of its prime exemplars – Trump, Bankman-Fried, and Musk.TopicsUS newsOpinionUS politicsUS taxationDonald TrumpSam Bankman-FriedFTXUS economycommentReuse this content More

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      IRS failed to conduct timely mandatory audits of Trump’s taxes while president

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      IRS failed to conduct timely mandatory audits of Trump’s taxes while presidentInternal Revenue Service only began audit after prompting from Congress in 2019, House ways and means committee indicates US tax authorities failed to audit Donald Trump for two years while he was in the White House, Democratic lawmakers said, despite a program that makes tax review of sitting presidents compulsory.House committee votes to release Trump’s tax returns to the publicRead moreThe claim, in a report issued by Democrats on the House ways and means committee voting to release six years of Trump’s tax returns, raises questions over statements made by Trump and members of his administration that he could not release his tax returns, a convention for aspiring and sitting presidents, because he was undergoing an Internal Revenue Service audit.The new report suggests US tax authorities only began to audit Trump’s 2016 tax filings in 2019, more than two years into his presidency. The audit, a requirement dating back to the Nixon administration, came only after Democrats took control of the House and requested Trump’s tax information.“This a major failure of the IRS under the prior administration and certainly not what we had hoped to find,” said Richard Neal, the Democratic ways and means chairman.Nancy Pelosi, the outgoing House speaker, praised the committee’s work. She said it revealed an “urgent need” for legislation to ensure accountability and transparency during the audit of a sitting president’s tax returns, “not only in the case of President Trump, but for any president”.Despite a six-year, cat-and-mouse dispute over Trump’s taxes, an issue that reached the supreme court, the committee made no suggestion that Trump sought to lean on the IRS or discourage it from reviewing his paperwork.“What happened?” Steven Rosenthal, a senior fellow at the Urban-Brookings Tax Policy Center, told the Associated Press. “If it was not resolved, the IRS stalled. If it was resolved in Trump’s favor, then maybe the IRS rolled over and played dead. That’s what we have to find out.”The 29-page report, which found that the audit process was “dormant at best”, was published hours after the committee voted to release Trump’s returns, which are now being examined.Democrats argue that transparency and the rule of law are at stake. Republicans maintain that the release of Trump’s records sets a dangerous precedent.“Over our objections in opposition, Democrats have unleashed a dangerous new political weapon that overturns decades of privacy protections,” said Kevin Brady, the top Republican on the ways and means committee.“The era of political targeting, and of Congress’s enemies list, is back and every American, every American taxpayer, who may get on the wrong side of the majority in Congress is now at risk.”Trump has had a bad week. On Monday, the bipartisan January 6 committee voted to make a criminal referral to the justice department for Trump’s role in inciting the Capitol attack and attempting to overturn the election. The referral is not binding on prosecutors, who are conducting their own investigation.Earlier this month, the Trump Organization was convicted on tax fraud charges related to helping senior executives dodge income taxes on perks. The Manhattan district attorney, Alvin Bragg, has said Trump and his business are still under investigation.Trump’s tax records amount to thousands of pages and may take days to be made public as the committee works to redacted sensitive details.Trump made up audit excuse for not releasing tax returns on the fly, new book saysRead morePublication may not answer the question of why Trump fought vigorously not to release his returns.The New York Times reporter Maggie Haberman has reported that Trump simply made up his audit claim while on his campaign plane in 2016. The same paper found that Trump was facing an audit potentially tied to a $72.9m tax refund arising from $700m in losses he claimed in 2009 and that he had rolled over those losses to collect tax benefits on income for the subsequent nine years.The dispute over Trump’s tax returns speaks to a larger fight over the IRS. Democrats argue it is ill-equipped to audit high-income, complex tax returns, and instead targets filers in lower-income brackets.Democrats on the House ways and means committee are proposing legislation to beef up the IRS and to require a report no later three months from the filing of any president’s tax returns.Republicans plan to cut recent increases in funding to the IRS when they take the House majority in January.TopicsDonald TrumpHouse of RepresentativesUS politicsUS taxationnewsReuse this content More