During U.S. presidential debate On Monday night at Hofstra University, the United States’ Republican presidential flag bearer, Donald Trump indicated that perhaps he doesn’t pay any taxes. This generated insinuations in many quarters suggesting he does not pay his fair share.
Hilary Clinton of Democrats first raised the prospect of Trump not paying any federal income tax during a discussion of why Trump hasn’t released his tax returns. She based the allegation on several returns Trump once provided in order to receive an Atlantic City casino license, although he did pay federal income tax in some of those years. During the debate, the duo started arguing on the large federal debt, while Clinton stylishly raised it that perhaps it would be smaller if Trump paid income tax in the past years and to this Trump seemed to have replied “It would be squandered too. Believe me”.
Acording to Mr Tom Wheelwright, Rich Dad Advisor on mybestadvisors.com, an online finance coaching platform, the eyebrow illustrates the lack of financial education surrounding tax system.
Tom explained; “the U.S. tax system raises about $2.1 Trillion every year. However, it also provides tax benefits of over $17.1 Trillion. The tax law is a series of incentives for business owners and investors to encourage certain activities. One of the most encouraged activities is real estate.
In fact, it would be shocking if, under the current U.S. tax law, Donald Trump pays any taxes at all. While people can argue all day long about whether this is fair, this is the reality and Mr. Trump is not alone. In fact, any U.S. Taxpayer who owns a significant amount of real estate probably pays very little tax.
The tax law punishes employees and rewards employers and investors. This is true in every country, not just in the U.S. The government uses the tax law to encourage people to follow its policies.”
According to Tom’s Analysis, Donald Trump, being a big time real estate investor was talking from this angle.
The summary of it is, be an investor, no matter how small. It is safe for you!
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