Tuesday, October 18, 2016

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. 

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