Accountants do play a
role in that world, after all, and recently our world has received a brighter
spotlight with the refusal of presidential candidate to release his tax
returns.
Every major party
candidate has released their tax returns since 1972. Mitt Romney caused some
talk in 2012 when he did not do so as early as is usual (around the typical
April deadline), but he eventually graced the world with a 203-page return from
2010 and a 379-page opus from 2011. Ross Perot, though, refused to release his returns
when he ran for president in 1992 (and with all the Gary Johnson talk on the
edges of this election, it is impressive to note that Perot garnered almost 19
percent of the popular vote then), because it seems to be what billionaires do.
I feel I first have to
state that Trump’s claim that he cannot release his return while it is under
audit is not valid. Yes, the audit may result in a couple of changes, but they
promise not to be that substantial,
And as Forbes’ Kelly Phillips Erb astutely pointed out
months ago, there is value in Trump releasing what he
actually filed, no matter what the final result is.
On one hand, it seems
understandable that people with the level of wealth of Trump and Perot would
not want those numbers publicly known. At the same time, however, it is not
like those who normally run for president are destitute. So it raises the
question, just what information is included when one releases a tax return?
First, the return would
give only a rough look at how much Trump is actually worth. He claims it is
billions of dollars at times, while his detractors claims it is a much smaller
number. My bet would be that the truth lies – like it does with almost
everything – somewhere in the middle. A tax return, though, deals in taxable
income, not overall worth, even when it runs to hundreds of pages.
The returns do actually
show some things, though, and a big one is just how much someone pays in taxes.
And I think this is the piece that could come to light and be the most
divisive. When debates rage over how much taxes one should pay – especially
among the extremely wealthy – it would be ammunition for opponents if they were
to find that Trump paid no or minimal taxes.
That situation seems to
be Trump’s reality, as we saw from the leaked returns that recently came to
light. Back in May, Trump also told ABC’s George Stephanopoulos
that “I fight very hard to pay as little tax as possible.” As I stated when I
wrote of the leaked returns a couple of weeks ago, this does not mean that
Trump has done anything illegal, shady or underhanded. If the fact that he
could pay next to nothing bothers someone, then the correct place to put the
blame is on the system, not on someone working within that system.
The returns would also
show how much money Trump gives to charity. This is another of those polarizing
issues. Trump claims he is charitable, while his detractors say he the money he
claims to donate are done through other organizations, where even if he is
involved, it is not actually his money going to the charity. Again, you know
where I believe the truth usually lies.
Some other things we
could learn from a return are real estate holdings and taxes, the possible
existence of offshore accounts, businesses in which one is involved and the
presence of household employees.
Would there be anything
in a return so shocking as to shift votes? That depends upon the importance and
value one places on certain issues. There is information there, though, and
more than one might realize if you only think of simpler tax returns. At this
point, we have to accept that we are not going to see this information. That is
unless Ben Affleck infiltrates Trump Tower and absconds with it.
No comments:
Post a Comment