The Sport of Tax Avoidance

May 11, 2019

Let’s be clear: the terms ‘tax evasion’ and ‘tax avoidance’ are often used interchangeably. However, only those activities which occur in a tax avoidance scheme are considered lawful.

Plenty of reliable media sources have carefully examined and reported on the awful legacy of Donald Trump’s multiple bankruptcies on a myriad of small businesses: architects, carpet suppliers, lighting and electrical distributors, even custom cabinet-makers.

A recent expose published by The New York Times focused on Trump’s taxes and revealed a previously unexposed nuance:  many of his unpaid bills were essentially ‘double counted’ through the magic of accrual accounting.  Thus, Trump and his Organization underpaid many vendors, while concurrently creating a paper loss for Trump which translated into a ‘tax loss carryforward’ good to shield future profits from future taxation.

If people had been able to look at this bad behavior as a base line, and project it forward, they might have been able to see how much damage The Donald has already done to families and communities in the U.S.

Following his inauguration in January 2017, Trump’s operating principles haven’t changed at all.

A direct result of the introduction of Trump operating principles into the Executive Office has become an oblique assault on moderate and small family-owned businesses across the U.S. — in the manufacturing sector; in retail; agriculture; mining; ranching; hospitality; media; transportation; entertainment; food; construction; business services; technology; and more.

The foundation of success epitomized in the American Dream is entrepreneurial — hard work, focus and sacrifice oriented to a long term view.

The minority of small business operators who operate like Trump — those who operate at the margins and take advantage of honest business people who operate on the platform of honesty and honor — get put out of business quickly.

Tax avoidance – using any and every loophole to avoid paying taxes – is legal, even when some of the activities involved may be considered by some to be morally repugnant.

Somehow, Trump has been able to use his unique combination of charisma and showmanship to fool a rather sizeable segment of American adults into believing his shtick.

How very sad…

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