Correct me if I'm wrong, but it sounds like your company would be minimizing tax moreso than you as a person. I would venture that if you paid yourself a salary, youd pay tax on that much like an employee.
My comment is directed moreso at his personal tax returns than his creative way of his company minimizing tax.
That is possible - but what about situations where that money remains within an entity I control. Usually someone at a certain level of income will have control over multiple "buckets" and those buckets are basically their own "people" with their own tax returns. So I may have 5 companies that all file a tax return and my personal tax return doesn't show much. To be honest, at this point I don't fully understand it because I am just learning and preparing for what is probably 2-3 years away (if I am lucky).
But this is why having an average citizen look at a businessman returns can be really misconstrued - his personal returns are probably the smallest that of a large picture. It isn't that he isn't paying, it is that he is not "twchnically" the one earning the money or paying the taxes.
It is like when everyone was upset that Romney had off-shore bank accounts and the average person thought that was a way of avoiding taxes. It is not. Americans are responsible for paying income taxes regardless of where the money is kept. Rich people keep accounts in various jurisdictions to impair legal access from lawsuits. It isn't only legal, it is prudent.
He still earns money. And he still avoids paying personal taxes.
He said he earned 418m in 2018, and yet only paid $750 in tax. In his own words "do as I say, not as I do"
Have you seen his actual return saying he paid $750? Because all I have seen is unsubstantiated news articles making claims from, at best, unnamed sources. It wouldn't be the first time false news articles were .are about him, see the Russia investigation and articles about him calling the troops lovers, which even people who were there and don't like Trump said never happened, but the articles run without facts and claim "unnamed source".
But Biden is on tape calling the troops "stupid bast*rds" to their faces.
Anyway, when he says he made it, again, it could easily be that entities which he owns made it and paid on a separate return. From a technical standpoint it is a separate entity, but for all intensive purposes it is his income.
Anyway, I admit I am learning a lot of this and do not quite fully understand it so I probably am not explaining well and maybe have some details wrong.
Also reducing taxable income by paying your daughter to advise you is a bit dubious. The guy knows how to play the system, and yet if it were a Democrat you would be screaming from the rooftops at how he is stealing govt money to finance his own interests.
To be fair, this isnt limited to Trump, it just highlights how the tax system can be played by the wealthy, and us regular folk are left to pick up the pieces.
I'd much prefer if they abolished income tax altogether so that shady stuff like this didnt need to exist, but people would just find other ways to avoid sales tax.
Paying someone $100,000 to not pay taxes of $40,000 doesn't seem like a good way to pay the system and this is a perfect example of a legit situation being skewed. The money she was paid was an expense to the company and she would have had to pay the taxes on that income, at a likely higher rate than Trump would have paid with the methods available to someone with his means. This is completely legit and not a very good way to evade paying taxes, since it will cost more than just paying the taxes.
But we agree - income tax should be either dramatically simplified at minimum and eliminated at best.