THE ERA WHICH WAS: When DJT paid the AMT!

TUESDAY, SEPTEMBER 29, 2020

The NYT's sleight of hand: Walter Cronkite wasn't crazy. Neither was David Brinkley.

In 1965, Cronkite anchored the CBS Evening News. Huntley co-anchored NBC's evening news program, The Huntley-Brinkley Report.

Brinkley's co-anchor was Chet Huntley. He didn't seem to be crazy either. None of these fellows did.

In 1963, these network news programs had been expanded from 15 to 30 minutes per night. Essentially, this was all a person could watch when it came to TV news. 

In short, there wasn't a lot of TV news in 1965. Even better, the people who anchored these nightly news programs didn't seem to be crazy. 

You rarely saw them make crazy statements. We're not sure they ever did!

In truth, it was hard to hear crazy statements in 1965. Our current era, The Era Which Was, hadn't quite started yet.

That said, talk radio was starting in San Francisco, not far from where we were finishing high school.  If memory serves, a bit of the Crazy actually was starting to show up there as Les Crane, and then Ira Blue, screamed and yelled at their callers.

(Crane would even slam the phone down on his callers. It was like talking to NAME WITHHELD at the Washington Post!)

We recall being puzzled by the turn toward the loud, the opinionated and the crazy on those KGO programs. That was largely because there hadn't been a lot of crazy around before that.

In 1965, it was actually hard to hear crazy statements. If you wanted to hear one version of the Crazy, you had to send away to the John Birch Society. After that, you'd have to wait until they mailed you back. 

In the meantime, there were Cronkite, Brinkley and Huntley. They delivered their half-hour news reports. That wasn't just the way it was, that was also all there was.

Today, thanks to new technologies, the Crazy is everywhere. And not only that! The Crazy is everywhere  on a 24-hour basis. 

Some of the crazy, or the selective, or the misleading or flatly inaccurate comes from organized corporate  sources. Talk radio, cable TV and the Internet are sources of the crazy or wrong on a round-the-clock basis.

That said, a large amount of the misleading or bogus now comes to us from regular people. "Social media" makes this possible. On occasion, Putin joins in!

The Crazy is everywhere today, and we humans are lacking in basic discernment. It's also true that our biggest journalistic stars may not always be well informed or fully cogent.

Yesterday morning, at 6 A.M., we were watching Morning Joe. We'd quit the show within the last year, so ridiculous had it become. Yesterday, we wondered how Joe would handle the bombshell report about the commander's taxes.

The program opened with videotape of Donald J. Trump saying that he does pay taxes. Also, that the New York Times' giant front-page report was "fake news." 

As he's done for six years, Trump said he'd release his tax returns once the IRS audit was done. 

"The IRS doesn't treat me well," the commander in chief complained. Then, Joe and Mika said this:

JOE (9/28/20): You know, he's actually right, Mika. He does pay taxes He—I think, what was it, last year, he paid $750 in taxes?

MIKA: Yeah.

JOE: Ten out of 15 years he paid zero percent in taxes? Think actually of the nurses who paid more in federal income taxes than Donald Trump over the last decade. Think of all the construction workers...

As everyone else on the planet knew, the celebrities had it wrong. Below, you see paragraphs 1, 2 and 5 of the bombshell report the stars were now discussing:

BUETTNER ET AL (9/28/20): Donald J. Trump paid $750 in federal income taxes the year he won the presidency. In his first year in the White House, he paid another $750.

He had paid no income taxes at all in 10 of the previous 15 years—largely because he reported losing much more money than he made.

[...]

The New York Times has obtained tax-return data extending over more than two decades for Mr. Trump and the hundreds of companies that make up his business organization, including detailed information from his first two years in office. It does not include his personal returns for 2018 or 2019. 

The lengthy report doesn't cover Trump's tax payments from "last year." On Sunday evening, we'd watched several hours of pundit discussions which made this basic point clear.

The Times report doesn't cover Trump's taxes from last year. Now it was Monday morning, and Joe and Mika didn't seem to know that. 

Their error doesn't make any difference; at this point, nothing does. But Joe and Mika are seven- or eight-figure TV stars, and they literally didn't know the first thing about the Times report.

This doesn't qualify as the Crazy, although this sort of thing does help nudge the Crazy along. 

Yesterday afternoon and evening, we were puzzled as various TV pundits offered dueling capsule accounts of what the Times had reported.

Some pundits said that Donald K. Trump had paid no income taxes in 10 of the 17 years on which the Times was reporting. Others said he had paid no income taxes in 11 of 18 years.

We're still not entirely sure where the eighteenth year comes from (more to follow). We saw no one stop to explain.

That isn't the Crazy either. It simply represents the culture of round-the-clock TV news.

Might we state the obvious? "Cable news" would be much more competent if it didn't create so much product. 

The same might be said of opinion columns. Consider Bret Stephens's column in this morning's New York Times.

Why do Trump voters vote for Trump? That strikes us as a very important question.

It's also true that there's no easy way to answer any such question. Today, Stephens reports his interview with one Trump voter, a gay woman in New York City who's a registered Democrat.

According to Stephens, "she was enthusiastic for Bernie Sanders in 2016" but will vote for Trump this year. Stephens reports her reasons for favoring Trump, failing to note that some of her statements make little sense on a purely factual basis.

(We'd be less dismissive of some of her views make perfect sense. For example, we share her view that Biden-Harris is a weak ticket.)

Do Democrats have something to learn from this one voter, who Stephens describes as an "outlier?" Almost surely, the answer is yes, but Stephens makes no attempt to say what it is.

We'd like to see our favorite stars speak to more Trump voters. Even so, it seemed to us that Stephens was phoning it in.

That doesn't qualify as the Crazy, just as the not super-sharp. That said, let's return to the basic claim made in the New York Times news report. As we do, let's ponder a possible sleight of hand within the the lengthy report.

Below, you see paragraphs three million and three million and one from the ten million paragraph report. Assuming the highlighted statements are accurate, they seem to undermine what the Times said way up in paragraph 5:

BUETTNER: Mr. Trump was periodically required to pay a parallel income tax called the alternative minimum tax, created as a tripwire to prevent wealthy people from using huge deductions, including business losses, to entirely wipe out their tax liabilities.

Mr. Trump paid alternative minimum tax in seven years between 2000 and 2017—a total of $24.3 million, excluding refunds he received after filing.

For the record, Buettner seems to be speaking about eighteen years in that passage, rather than seventeen. Elsewhere, he seems to say that the Times examined new data for eighteen years, including the year 2000.

("The Times examined and analyzed the data from thousands of individual and business tax returns for 2000 through 2017, along with additional tax information from other years.")

How many new years of data did the Times obtain? You'd almost think that financial journalists could keep such matters straight. 

Much more significantly, consider what Buettner says about the AMT—the alternative minimum tax.

As Buettner notes, the AMT was created as a type of substitute for the federal income tax.  If, under the tax code's welter of rules, an individual ended up owing no income tax, he would have to pay the AMT instead.

Sad! According to the Times, in seven years when Trump "paid no income tax," he did make AMT submissions—and those submissions totaled slightly more than $24 million. 

During those seven years, Trump averaged $3.5 million per year in AMT submissions. Did we mention the fact that the AMT was designed as an alternate form of—as a substitute or replacement for—the federal income tax?

During seven of the years in question, Trump paid no "income tax"—but he paid an average of $3.5 million in the alternative minimum tax! Journalistically, that has to be an all-time example of a "distinction without a difference." 

Sadly, it seems to leave us with only three years when the commander paid no income tax. Let's review the basic concepts:

The T in AMT does in fact stand for "tax." (The A stands for "alternative.") 

In other words, the AMT was designed as an alternative form of the income tax. It takes the place of the income tax when, under the rules of the game, no "income tax" is owed.

Yesterday morning, Joe and Mika (literally) didn't know the first thing the Times had said. Beyond that, it's hard to tell if the new data the Times acquired covers seventeen or eighteen years.

That's fairly minor stuff. The kicker would be this:

At some point, Stephens' outlier Trump supporter is going to hear about the way the New York Times glossed the role of the alternative minimum tax. 

She'll be told that the Times was selling fake news about the commander. Are we sure that claim will be inaccurate?

The Crazy starts to arrive on the scene when various people stop listening to people like Cronkite and Brinkley. When they decide that it makes no sense to credit the New York Times.

It seems to us that the Times report involved some sleight of hand. Did Cronkite and Brinkley ever do that?

Before The Era Which Was took shape, very few people thought that!

Again with what Joe said: Again, here's what Joe said:

JOE (9/28/20): You know, he's actually right, Mika. He does pay taxes He—I think, what was it, last year, he paid $750 in taxes?

MIKA: Yeah.

JOE: Ten out of 15 years he paid zero percent in taxes? Think actually of the nurses who paid more in federal income taxes than Donald Trump over the last decade. 

Oof! In seven of those ten years, Trump "paid zero percent in taxes" unless you count the millions he paid in that alternative tax!

Those nurses did pay more than Trump in "federal income taxes." But he paid millions more than they did in that alternative tax.

Absent further explanation, this strikes us as sleight of hand. Could a sensible person possibly say that this is slightly "fake?"


43 comments:

  1. Seven of 17 years, I think - not 7 of 10.

    ReplyDelete
    Replies
    1. Somerby is dumb as shit. He is so eager to bolster Trump, then oof belly flop face-plant.

      Delete
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  2. "Do Democrats have something to learn from this one voter, who Stephens describes as an "outlier?" Almost surely, the answer is yes, but Stephens makes no attempt to say what it is."

    We're happy to say we agree, dear Bob: the answer is yes.

    Obviously, a lot of people, humyn beings, vote for Our Beloved Commander because they are sick and tired of your liberal-hitlerian zombie cult.

    But please explain this, dear Bob: why do you, liberals, care so much about other people's taxes?

    Specifically, the head of the executive branch of the US government, what difference does it make how much taxes he paid in a given year?

    Tsk. Talk about The Crazy, dear Bob...

    ReplyDelete
    Replies
    1. Mao said it all when it said this:
      Я вельмі дурны і не думаю добра

      Delete
  3. Somerby uses the AMT to pretend that Trump did actually pay taxes. He also highlights words in a passage but not these words:

    "excluding refunds he received after filing"

    The AMT amounts cited do not take into account refunds Trump received. If you get a refund, then you didn't pay that amount but some lesser amount (or nothing at all) depending on the size of the refund.

    Somerby pretends that he doesn't understand what this means. He ignores it entirely, while accusing the Times of lying about whether Trump paid taxes or not.

    I will believe the NY Times before I believe Somerby. You might as well say that Trump is a billionaire because of his gross receipts, excluding expenses and liabilities.

    And what part of "money laundering" does Somerby not understand? Sounds like all of it!

    ReplyDelete
    Replies
    1. "Somerby pretends that he doesn't understand what this means. "

      Do you understand what this means, dear dembot? You get a refund when you overpaid previously. Why shouldn't it be excluded, my dear?

      Delete
    2. If you get a refund, then you didn't pay that amount in tax.

      Note also that in 2005 Trump had to pay AMT, but AMT was revised in 2017 as part of Trump's tax bill and now it affects far fewer millionaires.

      To answer your question, Mao, Trump didn't overpay, he filed fraudulent returns. That is catching up with him now.

      Delete
    3. AMT accounts for 2016-2017, and five of the years 2000-2015, so 7 years of AMT and 10 years of paying zero taxes.

      Oof Somerby gets it wrong, but thinks others are crazy. What a fucking moron.

      Delete
    4. Trump paid $750 for 2016 and 2017.

      Delete
    5. Yes, those are two of the AMT years.

      Delete
    6. "For 2015, he paid $641,931, his first payment of any federal income tax since 2010."

      Delete
    7. Trump's tax payments are crazy, 7 yrs he paid the AMT and 10 yrs he paid $0.

      Delete
    8. "If you get a refund, then you didn't pay that amount in tax."

      Again, you get a refund if you paid too much previously. Is this so complicated? You can get it as a payment, or you can use it to offset your next tax due.

      "he filed fraudulent returns"

      If you know someone who filed fraudulent returns, please call a social worker immediately.

      Delete
    9. Trump is suspected of tax fraud, he is being audited by the IRS.

      (Much like when a kid's fingers are covered in chocolate, he is suspected of taking a cookie from the cookie jar.)

      Since 2000, Trump paid 7yrs of AMT and 10 yrs of paying zero.

      His "business" is a house of cards.

      Delete
    10. So, we're clear about the refund, then?

      "Trump is suspected of tax fraud, he is being audited by the IRS."

      Dear dembot, people are not audited by the IRS because they are suspected of tax fraud. An audit might raise suspicions, and then there would be an investigation. High net-worth taxpayers are audited quite often, for obvious reasons.

      "His "business" is a house of cards."

      His business is his business. And your business is to litter the web with Orange Man Bad garbadge.

      Tsk. Oh well, to each their own.

      Delete
    11. Trump is suspected of tax fraud, he is being audited by the IRS, the IRS does not do random audits.

      Trump has failed at virtually all of his businesses, often filing for bankruptcy. He has found success in self-promotion, conning rubes into thinking he is something he is not. If one wants to fall prey to his con, more power to them.

      Since 2000, Trump paid 7yrs of AMT and 10 yrs of paying zero.

      Delete
    12. "the IRS does not do random audits"

      Huh? Please tell your dembot supervisor to correct the script; you sound like an ignorant idiot.

      "Trump has failed at virtually all of his businesses, often filing for bankruptcy." blah, blah, blah

      You're welcome to an opinion, dear dembot, but why do you care? Again, his business is his business.

      Delete
    13. "conning rubes into thinking he is something he is not"

      Call your parents, Mao. Tell them they're talking about you on the internet.

      Delete
    14. Trump wants others to be more respectful to him and his supporters, he thinks people are too rude to him, he said at a recent press conference.

      wah

      Then instead of releasing his taxes, he released a lot of hot air from his piehole. According to some, he also releases another gas from his other hole every time he wobbles a step - thus enforcing social distancing in his own unique manner.

      Having said that, for the rubes, and the fucking morons:

      Trump is suspected of tax fraud, he is being audited by the IRS, the IRS does not do random audits, they are based on suspicion, and in Trump's case, fraud, not an accounting error.

      Trump has failed at business - abusing and causing hardship for hundreds of workers, failed at being president - causing the worst economic crash since the Great Depression, and failed to respond to Covid - causing the unnecessary deaths of tens of thousands of people.


      And since 2000, Trump paid 7yrs of AMT and 10 yrs of paying zero taxes.

      Delete
    15. Trump confirms the IRS position:

      "The IRS does not treat me well. They treat me like the tea party, like they treated the tea party. They don’t treat me well. They treat me very badly. You have people in the IRS that they treat me very, very badly"

      Some say he is not smart, interesting.

      Delete
    16. "Trump is suspected of tax fraud"

      My dear, may we suggest that by copy-pasting the same drivel 3 times in a row while ignoring our responses, you simply declare (as if we needed another confirmation) that you are a bot? So, fine, another soros-bot, who cares.

      Delete
  4. On what planet would thinking that Biden-Harris is a weak ticket drive you into the arms of Trump?

    These Trump voters do not tell the truth when they are interviewed. Their answers make no sense, but Somerby thinks they have something to tell us. What exactly?

    ReplyDelete
  5. What a coincidence! Somerby was for Sanders and now he is supporting Trump too. He never tells us why though.

    What a coincidence! Russia was for Sanders and also for Trump.

    What a coincidence! A handful of Sanders voters stayed home instead of voting for Hillary in three states, which swung the electoral college for Trump. Now the Russians get whatever they want from their Putin-lovin' president.

    What a coincidence! Russia is still meddling in US elections to help get Trump reelected. I wonder how? Maybe Somerby knows.

    ReplyDelete
    Replies
    1. The question is: Who funds Somerby?

      Delete
  6. From USA Today:

    "The Times: "In fact, confidential records show that starting in 2010 he claimed, and received, an income tax refund totaling $72.9 million – all the federal income tax he had paid for 2005 through 2008, plus interest. The legitimacy of that refund is at the center of the audit battle that he has long been waging, out of public view, with the I.R.S.""

    This is why it is correct to say that Trump paid no taxes, despite the AMT, until 2015.

    "The Times: "Examining the Trump Organization’s tax records, a curious pattern emerges: Between 2010 and 2018, Mr. Trump wrote off some $26 million in unexplained 'consulting fees' as a business expense across nearly all of his projects."

    Some of these consulting fees went to Ivanka Trump. These amounts are greater than the amounts paid in taxes of any kind. Inflated operating expenses across his businesses show similar offsets against his income that reduced his taxes.

    These are not legal and they cheat the American people because the many people with much smaller incomes wind up paying instead.

    Trump's money laundering for Russian mobsters is a different issue that will be investigated now that his "loans" are out in the open.

    ReplyDelete
    Replies
    1. Somerby is bad at math and reading comprehension, the NY Times correctly stated that between 2000-2017, Trump had 7 yrs of AMT and 10 yrs of no payment.

      Delete
    2. The AMT was offset by the $72.9 million refund.

      Delete
    3. Regardless, the NY Times was right and Somerby is wrong.

      Delete
  7. The Times article says this:
    “When they got to line 56, the one for income taxes due, the amount was the same each year: $750.”

    And this:
    “After tabulating all the profits and losses from Mr. Trump’s various endeavors on Form 1040, the accountants came to Line 56, where they had to enter the total income tax the candidate was required to pay. They needed space for only a single figure.
    Zero.”

    Line 56, on older 1040 forms, included the alternative minimum tax.

    Thus, the Times is not making a phony distinction between “income tax” and AMT.

    (https://www.irs.gov/pub/irs-prior/f1040--2017.pdf)

    ReplyDelete
    Replies
    1. To be specific, line 56 was the sum of Tax, Alternative Minimum Tax and “excess advance premium tax credit repayment” (lines 44,45, and 46) minus various types of credits (lines 48-54).

      Delete
    2. mh, to be honest the article was fairly straightforward, it is Somerby that made a blunder in his eagerness to defend Trump.

      Delete
  8. Worse than that, the AMT is not really an Alternative. It is PART of the income tax. Looking at my 1040 from 2010, it is right there on line 45 - AMT (see instructions) attach form 6251.

    It is just as much a part of the income tax as Schedule A, schedule B, or the EIC.

    Somerby, and the Times even more so, and now people misreporting what the Times misreported, act like it is another tax, like property taxes or sales taxes or automobile taxes, that is separate from the Income tax.

    ReplyDelete
    Replies
    1. The NY Times is correct, Somerby is wrong. Trump paid AMT 7 yrs, paid zero tax for 10 yrs.

      Delete
  9. You start by assuming the Bret Stephens article is not a fraud. You never mention that possibility, and probably it never occurred to you there is something known as 'fake news'. Then an overly long discussion of some details of the unverified and somewhat weird report.

    ReplyDelete
  10. DAVID CAY JOHNSTON: Well, corporations, but not individuals, are allowed to smooth out their income for tax purposes. So, a business makes a profit, say, in seven years and loses money in three, they get to use the three losing years to offset their profits from the others.
    Trump did something different. When I got Donald’s 2005 income tax return, he only paid $3 million of regular income tax on an income of over $150 million. He paid a lower rate than the poorest half of American taxpayers, who that year made, on average, $16,000. But he did pay another $35 million of what’s called alternative minimum tax. And for real estate developers, that’s not really a tax.
    What happens is, the accounting rules cause you to pay the tax one year, and then the government gives it back to you in future years if you stay in the real estate business. Essentially, the government takes from you a zero-interest loan for a year.
    Now, Trump’s refund of $72 million-plus is supposed to be held back until it is reviewed by the staff of the congressional Joint Committee on Taxation. Any refund of more than $2 million is supposed to be reviewed first by the joint committee. Trump got the refund. He got the check. It’s not clear if there was a mistake made here or the joint committee passed on it. If they did, it’s probably because it was seen as an alternative minimum tax refund.
    But Donald’s claim, you know, that he pays a lot of taxes is based on not really paying taxes. It’s based on this system in which real estate developers may end up loaning the government money for a year or two at zero interest. That’s not a tax.»
    https://www.democracynow.org/2020/9/29/david_cay_johnston_trump_taxes

    ReplyDelete
  11. The Times hit piece did prove that Trump was telling it straight about being under audit.

    And no, being under audit is not in anyway akin to a criminal matter. That is just TDS Fueled© stupidity.

    ReplyDelete
    Replies
    1. Still shooting for that 5th-grade troll badge, I see.

      FAIL!

      Delete
    2. Deadbeat Trump is a business failure. Everyone now knows it. I heard people, just today, say Trump is a huge a national security risk. Probably the biggest in the history of the country. Sad.

      Delete
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  13. No mention of the high crime and the illegality of going into somebody's tax returns and reporting ANYTHING be it true or false?

    Not one word from the New York Times? Not one word from you? That is the very basis of this whole thing. There's no proof of anything. None. It's designed to be that way. That's why we have the IRS. You can get into the details if there has been wrongdoing. Have you heard the IRS say there's been any wrongdoing?

    So what business did anybody have discussing Trump's taxes when it was illegal for that information to be had? And cannot be proven because it is illegal for that information to be had?

    That ought to be as obvious to you as the reason that you don't walk down the middle of the streets.

    ReplyDelete
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