NY Times: Donald Trump is rich because his father gave him lots of money

It’s politically incorrect to say this but Donald Trump is not a self-made billionaire. From the New York Times:

But The Times’s investigation, based on a vast trove of confidential tax returns and financial records, reveals that Mr. Trump received the equivalent today of at least $413 million from his father’s real estate empire, starting when he was a toddler and continuing to this day.

and he got much of this money the way the rich often get their money, he swindled it:

Much of this money came to Mr. Trump because he helped his parents dodge taxes. He and his siblings set up a sham corporation to disguise millions of dollars in gifts from their parents, records and interviews show. Records indicate that Mr. Trump helped his father take improper tax deductions worth millions more. He also helped formulate a strategy to undervalue his parents’ real estate holdings by hundreds of millions of dollars on tax returns, sharply reducing the tax bill when those properties were transferred to him and his siblings.

These maneuvers met with little resistance from the Internal Revenue Service, The Times found. The president’s parents, Fred and Mary Trump, transferred well over $1 billion in wealth to their children, which could have produced a tax bill of at least $550 million under the 55 percent tax rate then imposed on gifts and inheritances.

The Trumps paid a total of $52.2 million, or about 5 percent, tax records show.

Fred Trump gave Donald money in multiple ways, all designed to minimize taxes,:

He made Donald not just his salaried employee but also his property manager, landlord, banker and consultant. He gave him loan after loan, many never repaid. He provided money for his car, money for his employees, money to buy stocks, money for his first Manhattan offices and money to renovate those offices. He gave him three trust funds. He gave him shares in multiple partnerships. He gave him $10,000 Christmas checks. He gave him laundry revenue from his buildings.

and if Fred Trump could get others to partially pay, all the better:

Each year Fred Trump spent millions of dollars maintaining and improving his properties. Some of the vendors who supplied his building superintendents and maintenance crews had been cashing Fred Trump’s checks for decades. Starting in August 1992, though, a different name began to appear on their checks — All County Building Supply & Maintenance.

Mr. Walter’s computer systems, meanwhile, churned out All County invoices that billed Fred Trump’s empire for those same services and supplies, with one difference: All County’s invoices were padded, marked up by 20 percent, or 50 percent, or even more, records show.

The Trump siblings split the markup, along with Mr. Walter.


The Trumps used the padded All County invoices to justify higher rent increases in Fred Trump’s rent-regulated buildings. Fred Trump, according to Mr. Walter, saw All County as a way to have his cake and eat it, too. If he used his “expert negotiating ability” to buy a $350 refrigerator for $200, he could raise the rent based only on that $200, not on the $350 sticker price “a normal person” would pay, Mr. Walter explained. All County was the way around this problem. “You have to understand the thinking that went behind this,” he said.

As Robert Trump acknowledged in his deposition, “The higher the markup would be, the higher the rent that might be charged.”

State records show that after All County’s creation, the Trumps got approval to raise rents on thousands of apartments by claiming more than $30 million in major capital improvements. Tenants repeatedly protested the increases, almost always to no avail, the records show.

Donald would have lost his money a couple times if this father hadn’t bailed him out, such as:

Donald Trump took on a mien of invincibility. The stock market crashed in 1987 and the economy cratered. But he doubled down thanks in part to Fred Trump’s banks, which eagerly extended credit to the young Trump princeling. He bought the Plaza Hotel in 1988 for $407.5 million. He bought the Eastern Airlines shuttle fleet in 1989 for $365 million and called it Trump Shuttle. His newest casino, the Trump Taj Mahal, would need at least $1 million a day just to cover its debt.

On Dec. 17, 1990, Fred Trump dispatched Howard Snyder, a trusted bookkeeper, to Atlantic City with a $3.35 million check. Mr. Snyder bought $3.35 million worth of casino chips and left without placing a bet. Apparently, even this infusion wasn’t sufficient, because that same day Fred Trump wrote a second check to Trump’s Castle, for $150,000, bank records show.

In December 1987, records show, Fred Trump bought a 7.5 percent stake in Trump Palace, a 55-story condominium building his son was erecting on the Upper East Side of Manhattan. Most, if not all, of his investment, which totaled $15.5 million, was made by exchanging his son’s unpaid debts for Trump Palace shares, records show.
Four years later, in December 1991, Fred Trump sold his entire stake in Trump Palace for just $10,000, his tax returns and financial statements reveal. Those documents do not identify who bought his stake. But other records indicate that he sold it back to his son.

And now he’s President of the United States. It makes me proud.

Trump doesn’t care about the law

I posted a week ago that ICE and CBP don’t care too much about following the law. Donald Trump shows where this attitude comes from in a series of tweets:

We cannot allow all of these people to invade our Country. When somebody comes in, we must immediately, with no Judges or Court Cases, bring them back from where they came. Our system is a mockery to good immigration policy and Law and Order. Most children come without parents..

So he’s saying the US should stop following the law to uphold Law and Order? Interesting. A later tweet:

Hiring manythousands of judges, and going through a long and complicated legal process, is not the way to go – will always be disfunctional. People must simply be stopped at the Border and told they cannot come into the U.S. illegally.

He again suggests the US should do something illegal and throws in a lie–if people come to the border to ask for asylum they’re not illegal. This is part of his political correctness, anything he does is fine while anything he doesn’t like is illegal.

How Betsy Devos studies violence in schools

Well, this is just surreal:

“Will your commission look at the role of firearms as it relates to gun violence in the schools?” Leahy asked.

“That is not part of the commission’s charge, per se,” DeVos replied.

“I see. So you’re studying gun violence and not considering the role of guns,” Leahy said.

“We are actually studying school safety and how we can ensure the students are safe at school,” DeVos said.

And they’re not doing much studying of school safety either (bold added):

DeVos’s commission has never met, but she has hosted listening sessions at Education Department headquarters and last week visited a Maryland elementary school that employs a strategy that teaches students interpersonal skills and encourages them to connect with one another. Gun restrictions were not discussed during the session, which lasted nearly five hours.

The Education Department is set to host a forum Thursday, allowing members of the public to share their suggestions on reducing school violence with the commission. DeVos, who is traveling to Switzerland to learn about Swiss-style apprenticeships, will not be in attendance.

She’s one of the best, Trump hired only the best.

MA Family Institute wants discrimination back

Massachusetts added gender identity to the list of reasons people can’t be discriminated against in 2016. That’s very upsetting to some people so they’re trying to get it overturned by ballot:

A November ballot question asking voters whether to keep or repeal the state’s 2016 antidiscrimination law is expected to be the first statewide referendum on transgender rights, taking the national temperature on a fiery hot social issue.

Leading the repeal effort are conservative and religious activists and some of the same groups that tried unsuccessfully for years to prevent or stop same-sex marriage in Massachusetts. Their Keep MA Safe campaign — whose website features the bathroom video — suggests that the rights afforded by the state’s antidiscrimination law are infringing upon others’ privacy and potentially endangering women and children.

“A man can enter a woman’s space at any time, without any proof of any sort of medical or psychological condition, merely based on his internal sense of self if he says he identifies as a woman,” said Beckwith, president of the Massachusetts Family Institute.

I have no problem with transgender people being in the same bathroom as me.  I’d be much more worried if Beckwith was in a stall next to me, he seems overly conscious of exactly who is in the bathroom with him.

More political correctness

For some reason, career employees in the federal government don’t much like President Trump:

Trump’s frequent attacks on the “deep state” have engendered deep distrust between career and political employees, pushing many long-time civil servants toward the exits and raising the possibility of a government-wide brain drain.

And while some workers, such as Border Patrol agents, are feeling newly empowered under Trump, morale at other agencies is so low that some employees said they were suffering from increased anxiety and depression that has complicated their personal relationships and even led to heavier drinking.

Several career employees said they were keeping their heads down and ignoring possible avenues for promotions because they have little interest in being subjected to the political infighting that has taken hold in many agencies.

And it all comes back to classic political correctness:

“From their point of view, they didn’t want to be surprised by finding out that we were looking at subject ‘X,’” he said. “When I pushed back and said we can’t do that, we don’t know what we’ll be publishing three years from now because we haven’t done the science yet, they’d say, ‘Well what are you hiding?’”

Last year, a team at the National Archives and Records Administration was told by senior NARA officials that it couldn’t put on a program that would have examined the historic context of immigration to the United States because it might attract “unwanted attention” to the Trump administration and put the agency’s funding in jeopardy, according to a NARA employee. “This was a year after we were able to host Black Panthers and a founder of Black Lives Matter,” the employee said. A NARA spokesperson did not comment.

Not being PC is treason for Trump

President Trump really doesn’t like it when people don’t genuflect his way:

President Donald Trump mocked Democrats Monday for their stony reactions during his State of the Union speech last week, saying that it was even “treasonous.”

“They were like death and un-American. Un-American. Somebody said, ‘Treasonous.’ I mean, yeah, I guess, why not,” he said to laughter.

“Can we call that treason? Why not,” he added. He made the remarks during a speech at a manufacturing plant in Cincinnati, Ohio.
“I mean they certainly didn’t seem to love our country that much,” he said, adding it was “very, very sad.”
Trump’s comments came less than a week after he delivered his State of the Union address in which he preached the virtue of bipartisanship.
If you’re not a Trump sycophant then you’re in-American. And just for fun:

Trump’s remarks came during a free-wheeling, highly partisan speech he gave at a factory in Cincinnati on Monday. The speech was billed as official government business, meaning taxpayers footed Trump’s expenses rather than the Republican Party, which is supposed to cover costs when the president is on political business.

The White House insisted the event was not political, even as Trump traveled with Rep. Jim Renacci aboard Air Force One. Renacci, a Republican whose Akron-based district is across the state from Cincinnati, is vying to challenge Democratic Sen. Sherrod Brown in 2018.

So, he was calling Democrats un-American during a speech where he was bending the rules just a touch. Nice symbolism.

Trump supports businesses over workers

Since a law was passed by the Obama administration, the Trump administration is trying to get rid of it (via here):

The proposal rescinds a 2011 rule that asserted tips are the property of workers who earn them. That revision of the Fair Labor Standards Act covered scenarios in which restaurants and other employers supplemented tipped workers’ earnings by paying at least the full minimum wage.
Since the rule’s release in December, worker advocacy groups and Obama administration officials have vehemently opposed it. They point to language that permits companies to keep gratuities for themselves, provided they pay workers at least the federal minimum wage of $7.25 per hour and don’t apply a tip credit that allows them to pay as little as $2.13 per hour, depending on the state.

What is the Trump argument?

The department has previously defended criticism of the proposal by saying the move would lead to higher pay for some low-wage workers who don’t traditionally earn tips, such as dishwashers. The DOL has also argued that managers would be dissuaded from stealing tips, out of fear of employee turnover and decreased morale. The department further noted that it included in the proposal a qualitative analysis, which doesn’t include dollar figures.

The department decided to study this and found:

Senior department political officials—faced with a government analysis showing that workers could lose billions of dollars in tips as a result of the proposal—ordered staff to revise the data methodology to lessen the expected impact, several of the sources said. Although later calculations showed progressively reduced tip losses, Labor Secretary Alexander Acosta and his team are said to have still been uncomfortable with including the data in the proposal. The officials disagreed with assumptions in the analysis that employers would retain their employees’ gratuities, rather than redistribute the money to other hourly workers. They wound up receiving approval from the White House to publish a proposal Dec. 5 that removed the economic transfer data altogether, the sources said.

There’s your typical PC action by the Trump administration: they don’t like what something says so they pretend it doesn’t exist. After all Donald Trump says he helps workers so anything that says otherwise must be wrong. Trump cares much more about the perception than the reality, so down the memory hole goes the report.

Previous Older Entries

%d bloggers like this: