Donald Trump never wanted to be president.
His lofty political upset is just an impulsive publicity stunt to line his family’s pockets, get revenge on those who have humiliated him, and promote his ailing brand by exploiting America’s divisive politics and deification of superficial entertainment.
According to Fortune magazine:
“In the early 1990s, Trump skirted personal bankruptcy by forging deals with lenders that substantially lowered his mountainous debt load. Under IRS rules, debt relief is considered taxable income. The borrower is required to report as income every dollar that creditors write down in loans that he or she has personally guaranteed, minus the fair market value of the assets surrendered to the banks as part of the restructuring package. The resulting income is then subject to both federal and state taxes.“
Banks Offer Trump A Miracle Bailout
In 1992, major lenders agreed to subtract $1.3 billion from the $3.5 billion Trump owed them with the concession Trump jettison $770 million of $885 million in loans from a group of Citibank lenders.
The banks then seized portions of Trump’s empire: The Trump Shuttle, the Atlantic City Regency Hotel, and a 28 percent share in the Alexander’s department stores. Trump was able to retain three Atlantic City casinos, the Penn Yards along the Hudson River, and Trump Tower in Manhattan.
“Trump’s tax liability from debt relief for that year could still have been substantial, possibly tens of millions of dollars.”
According to the IRS, if a borrower is “insolvent,” – his or her liabilities exceed assets – and the dollar amount of his or her negative net worth exceeds assets by more than the debt relief’s amount, he or she owes nothing in income taxes on debt relief.
The negative net worth’s amount becomes substantial enough to efface all pending taxes.
CPA James Rosa, principal at HBK, in Youngstown, Ohio, explains:
“Insolvency is the way out. If liabilities exceed the fair market value of the assets, the borrower is absolved from paying taxes.”
The banks Trump was dealing with recorded a total of $1.3 billion of Trump’s liabilities in 1992. It’s possible, then, Trump’s total eligible remaining debt was enough to eliminate or lower the amount of taxes he would owe the IRS.
Trump boasted to Business Week after the bailout he was still worth $1.5 billion. Business Week analyzed this to confirm, and found that accounting valued Trump’s liabilities at $1.4 billion more than his assets.
The financial disclosure statement Trump was required to sign when declaring his candidacy lists 16 loans from 11 banks, totaling at least $335 million. Most noticeably is Deutsche Bank, which lent at least $295 million:
- $125 million in 2012 to help Trump purchase Trump National Doral, a golf course, and
- $170 million line of credit last year for Trump’s new hotel down the street from the White House on Pennsylvania Avenue.
Deutsche Bank has a looming lobbying presence in Washington.
It also has a presence in…Russia!
Which brings us to the run-up to the presidential election.
The Road To Trump
In 2011, Trump stepped into the political spotlight when he announced President Barack Obama was not born in the United States. This coincided with the ratings decline of Trump’s NBC shows The Apprentice and Celebrity Apprentice, and the souring of NBC’s relationship with Trump as Trump began spouting extreme political positions.
That April, President Obama dressed down Donald Trump at the White House Correspondents‘ Dinner, lampooning Trump’s penchant for conspiracy theories and lack of political acumen.
Trump was not amused. Some credit that night as the moment he decided to run for president.
In June 2015, NBC officially cut Trump loose after his campaign announcement in which he famously labeled Mexican immigrants “rapists” and “murderers,” and proposed building a wall along our border.
It’s no secret Trump has myriad entanglements in Russia. Could it be Trump is so up to his blonde hair plugs in debt he engaged in a Faustian bargain with Russia because of his obligation to Deutsche Bank?
It’s also no secret Russian president Vladimir Putin despises former Secretary of State Hillary Clinton because of her hard-line stance against Russia while she was secretary of state.
Since the 1990s, Trump has been in some serious financial dire straits; his brand was failing; he started spouting Alex Jones-esque conspiracy theories; and the President of the United States made a fool of him.
Connect Trump’s business ties to Russian oligarchs with his craven need for revenge on Obama. Add Vladimir Putin’s similar disdain for Obama and his mission to re-ignite the Cold War.
Trump is a reality TV celebrity. He understands the American public’s hunger for drama and controversy. He understands the “wait and see” cliff-hanger will leave most doing just that. He chose the most high-profile position in the world to promote his brand and knew the mainstream corporate media would hand him thousands of hours of ratings-driven free air time.
No wonder Trump is guarding his tax returns like a child’s pacifier.
No wonder he delivered such ridiculous, over-the-top ad-hominem attacks any other time in history would have gotten a serious contender for president disqualified.
No wonder he ran against establishment Republicans on mostly Democratic positions– promising defend Social Security and Medicare, providing health care for all, putting an end to “dumb wars.”
No wonder never imagined being president would be so hard.