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Cathy Wilcox  |
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| Pat Hudson |
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| David Rowe |
Donald Trump’s policy agenda could precipitate a global financial crisis and fuel inflation, one of the world’s leading analysts has warned, with fears Australians will suffer higher interest rates and a $36 billion hit to the domestic economy @theage pic.twitter.com/0VFn0oz7YY
— MattGolding Cartoons (@GoldingCartoons) November 7, 2024
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| First Dog On The Moon |
It is perhaps well to remember that whilst the cronyism, venality and often industrial scale corruption of national governments is well known in history, here in Australia we appear to hold the quaint notion that as a democracy we will not be led by the likes of a Pahlavi, Marcos or Putin. Men who sought not only authoritarian power but also to enrich themselves from the public purse and their nation’s resources.
But does the example of the former Morrison Government and what is happening in the U.S. right now not make one wonder if we here in Australia need to clearly define limits to the powers held by a prime minister and, perhaps also require all members of any federal Cabinet or outer ministry to present their tax returns to the Parliament for formal audit every year they are in government?
For that matter, perhaps it is well past time that members of a federal government are denied access to taxpayer funds to defray court ordered financial penalties & legal costs in relation to defamation or sexual harassment proceedings.
Both Morrison & Trump ignored democratic principles and processes whenever they chose, with Trump’s action being perhaps the more egregious. However, one has to wonder if profiteering from public office was something both national governments did – if not to the same scale at least with the same frequency.
In Australia we will never know because we have such weak mechanisms to monitor or prevent such things. The Parliament often being reluctant to police members' specific pecuniary interests, the Constitution not shutting the door firmly enough on profiting from the Crown and the Register of Members’ Interests being nothing more than a risible fig leaf covering suspected dodgy trusts and self-managed super funds.
Consider former U.S. president Donald Trump’s financial affairs and ask yourselves: Could some of the prime ministers and/or ministers in office between September 2013 and May 2022 have conducted their own financial affairs in a similar manner?
To call the business structure that Donald John Trump built – carried with him into the White House and back out again - ‘Byzantine’ is being kind.
It appears to be a maze of est. 500 inter-related companies, subsidiaries, partnerships, trusts, overseas bank accounts and possibly shells, potentially designed to literally push financial bullshite uphill until a business income loss or tax credit could be established on paper for personal benefit.
During his first presidential election campaign in 2016 Trump self-reported net wealth of almost US$10 billion with debts of at least US$265 million – thought at the time to be achieved by an exaggeration of property and brand values and that his net wealth would be closer to est. US$4.1 billion. There were calls to show his tax return. He promised to reveal his tax returns but didn’t.
As president he continued to falsely complained that his tax affairs were under almost continuous Internal Revenue Service (IRS) audit so it was impossible for him to release them.
Once the nation voted him out of office Trump went to the U.S. Supreme Court in an attempt to stop the release of his tax returns for the years 2015 through to 2020. A legal battle he lost in TRUMP, DONALD J., ET AL. V. COMM. ON WAYS AND MEANS, ET AL on 22 November 2022.
He was so successful in his resistance up until then that only one incomplete mandatory IRS audit occurred during his presidency - being ordered in September 2019 for the tax year 2016, but never completed and appears to have been quietly abandoned. Trump appointee as IRS Commissioner, Charles P. Rettig, reportedly excused the then president from the mandatory auditing process sometime during his tenure as commissioner.
On 16 June 2021 the U.S. Congress House Committee of Ways and Means wrote to the Treasury Secretary seeking details of the required annual mandatory audits of Trump’s personal tax returns during his presidency, unaware of the true state of affairs.
This letter requested all audit materials from 2015 to 2020 with particular reference to:
whether an IRS examination of the returns took place and the present status of the audits, the applicable statutes of limitations, and the issues considered:
1. The Federal income tax returns of Donald J. Trump (Form 1040),
2. The Federal income tax returns of the Donald J. Trump Revocable Trust,
3. The Federal income tax returns of DJT Holdings LLC (Form 1065),
4. The Federal income tax returns of DJT Holdings Managing Member LLC (Form 1120-S),
5. The Federal income tax returns of DTTM Operations LLC (Form 1065),
6. The Federal income tax returns of DTTM Operations Managing Member Corp (Form 1120-S),
7. The Federal income tax returns of LFB Acquisitions Corp (Form 1120-S),
8. The Federal income tax returns of LFB Acquisition LLC (Form 1065), and
9. The Federal income tax returns of Lamington Farm Club, LLC d/b/a Trump National Golf Club-Bedminster (Form 1120-S).
Trump’s personal tax returns were joint filings with his wife Melania and listed one son as a dependent. He stated his main source of income was derived from “Management Services”, “Aviation”, “Speaking Engagements”, “Real Estate”, “Golf”, “Ice Skating Rink”, and “Restaurant”.
For a man who repeatedly bragged about his business acumen and wealth in the billions, his 2015 personal and business tax returns indicated that he carried forward business loses of US$105.15 million and he and his wife declared a 2015 calendar year joint negative income of $31.7 million leaving a nominal tax bill of $0.
So by 2015 either he was fast approaching the need for yet another strategic corporate bankruptcy or he had applied the most ‘creative’ accountancy when dealing with the U.S. IRS for that year and the following five years.
Either way, once in the Oval Office Trump appears to have continued to follow his own unique tax return template so that by 2020 he was still paying low tax or no tax – apparently due in part to sizeable business income losses at two of the nine entities whose tax returns were requested by the House Committee on Ways and Means – DJT Holdings Managing Member LLC and DTTM Operations LLC. It is interesting to note that 2020 was also a year devoid of charitable donations by Mr. & Ms. Trump and, it seems that there is some suspicion that previous charitable donation figures may be largely unsupported by appropriate documentation.
Page 2 of the House Committee on Ways and Means Final Report spells out some specific accounting concerns:
• Charitable contributions—whether the 2015 conservation easement deduction of $21 million and other large donations reported on the Schedule A were supported by required substantiation.
• Verification of Net Operating Loss Carryover Schedule—whether the amount of net operating loss carryover in 2015 of $105,157,825 and future years was proper.
• Unreimbursed partnership/S corporation expenses—whether the terms of the partnership agreements supported unreimbursed expense deductions totaling $27 million over six years.
• Related party loans—whether loans made to the former President’s children are loans or disguised gifts that could trigger gift tax.
• Cost of goods sold deductions by DJT Holdings—whether these deductions of about $126.5 million over five years is appropriate when it is not clear what DJT Holdings is selling from the face of the return.
• LFB Acquisition LLC—whether there is any support for changes in the management fees and general and administrative expenses of LFB Acquisition that were significantly higher in 2017 ($1.9 million and $2.8 million, respectively) than 2016 ($750,000 and $549,000, respectively) and 2018 ($707,000 and $570,000, respectively).
In fact when it comes to actually paying personal income tax Donald and Melania Trump paid US$641,951 tax in 2015, $US$750 in 2016, $US$750 in 2017, US$999,466 in 2018, US$133,445 in 2019 and US$0 in 2020, claiming a refund of US$5,468,593.
Then there is the matter of the two shell companies set up by Trump’s then personal attorney Michael Cohen in 2016, Resolution Consultants LLC and Essential Consultants LLC. The former allegedly created for the US$120,000 purchase and then suppression of a story by former Playboy Playmate Karen McDougal about her involvement with Trump and the latter created to pay US$130,000 to former adult-film star Stephanie Clifford, professionally known as Stormy Daniels.
It has been reported that Trump had claimed the second personal expense of $130,000 as a business expense though whether he did that in his 2016 tax returns or later I have been unable to ascertain.
It is noted that, in the three years from 2017 to 2019 Trump donated the annual US$400 million presidential salary “solely for public purposes” in order to get a back a combined total of US$1,200 million as a deduction on his tax bills, according to The Washington Post.
As for an overview of Trump’s business practices…..
To quote Page 5 of the House Committee on Ways and Means’ 20 December 2022 Final Report:
Numerous investigative reports have revealed that the former President, through the complex arrangements of his personal and business finances, has engaged in aggressive tax strategies and decades-long tax avoidance schemes, including taking a questionable $916 million deduction, using a grantor trust to control assets, manipulating tax code provisions pertaining to real estate taxes, and extensively using pass-through entities. Media reports have also revealed that he benefited from massive conservation easements, and that certain of his golf courses failed to properly account for wages paid to employees, raising questions about compliance with payroll and Social Security tax laws. As President, he took pride in “brilliantly” maneuvering the tax laws to his personal benefit. Even as he was championing the Tax Cuts and Jobs Act of 2017, the former President referred to the tax code as “riddled with loopholes” for “special interests—including myself.”
BACKGROUND
The House Committee on Ways and Means “REPORT ON THE INTERNAL REVENUE SERVICE'S MANDATORY AUDIT PROGRAM UNDER THE PRIOR ADMINISTRATION (2017-2020” Final Report of 20 December 2022 can be found at:
On 30 December 2022 the House Committee on Ways and Means released a zip file containing all Donald John Trump’s personal & business tax returns via Attachment E. Links to the full range of documents the Committee has released can be found at the bottom of this document at:
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| Donald Trump in defeat IMAGE: www.afr.com, 8 November 2020 |
AXIOS, Off the rails: Behind Trump's post-election meltdown, 18 January 2020:
Beginning on election night 2020 and continuing through his final days in office, Donald Trump unraveled and dragged America with him, to the point that his followers sacked the U.S. Capitol with two weeks left in his term. This Axios series takes you inside the collapse of a president.
Episode 1: A premeditated lie lit the fire
Trump’s refusal to believe the election results was premeditated. He had heard about the “red mirage” — the likelihood that early vote counts would tip more Republican than the final tallies — and he decided to exploit it.
"Jared, you call the Murdochs! Jason, you call Sammon and Hemmer!”
President Trump was almost shouting. He directed his son-in-law and his senior strategist from his private quarters at the White House late on election night. He barked out the names of top Fox News executives and talent he expected to answer to him.
“And anyone else — anyone else who will take the call," he said. “Tell these guys they got to change it, they got it wrong. It’s way too early. Not even CNN is calling it.”
As the clock ticked over into the first minutes of Nov. 4, Trump’s lawyer Rudy Giuliani ranted to top campaign aides: "There's no way he lost; this thing must have been stolen. Just say we won Michigan! Just say we won Georgia! Just say we won the election! He needs to go out and claim victory." Trump’s campaign manager Bill Stepien later told associates: "That was fucking crazy."
For weeks, Trump had been laying the groundwork to declare victory on election night — even if he lost. But the real-time results, punctuated by Fox’s shocking call, upended his plans and began his unraveling.
Trump had planned for Americans to go to bed on Nov. 3 celebrating — or resigned to — his re-election. The maps they saw on TV should be bathed in red. But at 11:20 p.m. that vision fell apart, as the nation’s leading news channel among conservatives became the first outlet to call Arizona for Joe Biden. Inside the White House, Trump's inner circle erupted in horror.
Over the next two months, Trump took the nation down with him as he descended into denial, despair and a reckless revenge streak that fueled a deadly siege on the U.S. Capitol by his backers seeking to overturn the election. This triggered a constitutional crisis and a bipartisan push to impeach Trump on his way out the door, to try to cast him out of American politics for good.
But in four years, Trump had remade the Republican Party in his own image, inspiring and activating tens of millions of Americans who weren’t abandoning him anytime soon. He’d once bragged he could shoot another person on Fifth Avenue and not lose his voters. In reality, many of them had eagerly lined up to commit violence on his behalf.
As Trump prepared for Election Day, he was focused on the so-called red mirage. This was the idea that early vote counts would look better for Republicans than the final tallies because Democrats feared COVID-19 more and would disproportionately cast absentee votes that would take longer to count. Trump intended to exploit this — to weaponize it for his vast base of followers.
His preparations were deliberate, strategic and deeply cynical. Trump wanted Americans to believe a falsehood that there were two elections — a legitimate election composed of in-person voting, and a separate, fraudulent election involving bogus mail-in ballots for Democrats.
In the initial hours after returns closed, it looked like his plan could work. Trump was on track for easy wins in Florida and Ohio, and held huge — though deceptive — early leads in Pennsylvania and Michigan.
But as Bill Hemmer narrated a live "what if" scenario on his election telestrator from Studio F of Fox’s gargantuan Manhattan headquarters, the anchor sounded confused. "What is this happening here? Why is Arizona blue?" he asked on camera, prodding the image of the state on the touch screen, unable to flip its color. "Did we just call it? Did we make a call in Arizona?" Because of a minor communication breakdown, Hemmer's screen had turned Arizona blue before he or the other anchors, Bret Baier and Martha MacCallum, found out that Fox’s Decision Desk had called it.
Trump was steaming and he wanted to see his top aides immediately. His son-in-law Jared Kushner, chief of staff Mark Meadows, campaign manager Stepien, senior strategist Jason Miller, and data cruncher Matt Oczkowski took the elevator up to the third floor of the residence at the White House. They met Trump and the first lady halfway between his bedroom and the living room at the end of the hall. Trump peppered them with questions. What happened? What the hell is going on at Fox?
Oczkowski told Trump that based on the campaign’s modeling he thought Fox was wrong and “we’re going to narrowly win” by maybe 10,000 votes or less, “razor close.” But the reality was, hundreds of thousands of votes were outstanding in Maricopa County and the picture was too cloudy to be sure. Then Trump told Kushner to call the Murdochs…..
Read the full segment here.
Episode 2: Barbarians at the Oval
President Trump plunked down in an armchair in the White House residence, still dressed from his golf game — navy fleece, black pants, white MAGA cap. It was Saturday, Nov. 7. The networks had just called the election for Joe Biden.
In the Yellow Oval Room, the same room where FDR learned of the Japanese attack on Pearl Harbor in 1941, stewards brought hors d’oeuvres on trays while Trump gathered his closest political advisers to assess what options he had left.
Top aides including campaign manager Bill Stepien, senior adviser Jason Miller, conservative political activist and external Trump adviser David Bossie, and Justin Clark, the deputy campaign manager, leveled with him. As they saw it, he had one last long shot at victory. It would require them to win enough outstanding votes in Arizona and Georgia to squeak home in those two states, and to win a legal challenge to election practices in Wisconsin.
"You have a 5% to 10% chance of this happening," Clark told the president. "But all of these things have to go right.” Trump listened calmly and told them their plan was worth a shot.
But it would never get off the ground. Plan B, driven by Rudy Giuliani and a parallel track of conspiracists, was already coming together, unfolding before the original advisers' own eyes.
It would soon overtake the campaign's legal operation, feeding the president false claims including the idea that the election could be overturned.
On the day after the election, Nov. 4, top staff including Stepien, Clark, Miller, general counsel Matthew Morgan and Jared Kushner had gathered at Trump campaign headquarters in Arlington, Virginia. They believed this would be a serious search for a path to 270 electoral votes through credible legal challenges.
Then Giuliani, Sidney Powell and a swelling conspiracy crew marched into the room — literally.
These two groups — the professional staff and the Giuliani cabal — filled in around one long, rectangular table in a conference room walled in by frosted glass. The pattern repeated itself the day after that and the day after that….
Read the full segment here.
Episode 3: Descent into madness ... Trump: "Sometimes you need a little crazy"
The conspiracy goes too far. Trump's outside lawyers plot to seize voting machines and spin theories about communists, spies and computer software.
President Trump was sitting in the Oval Office one day in late November when a call came in from lawyer Sidney Powell. "Ugh, Sidney," he told the staff in the room before he picked up. "She's getting a little crazy, isn't she? She's really gotta tone it down. No one believes this stuff. It's just too much."
He put the call on speakerphone for the benefit of his audience. Powell was raving about a national security crisis involving the Iranians flipping votes in battleground states. Trump pressed mute and laughed mockingly.
"So what are we gonna do about it, Sidney?" Trump would say every few seconds, whipping Powell more and more into a frenzy. He was having fun with it. "She really is crazy, huh?" he said, again with his finger on the mute button.
It was clear that Trump recognized how unhinged his outside legal advisers were. But he was becoming increasingly desperate about losing to Joe Biden, and Powell and her crew were willing to keep feeding the grand lie that the election could be overturned….
Read the full segment here.
Episode 4: Trump turns on Barr
Trump torches what is arguably the most consequential relationship in his Cabinet.
Attorney General Bill Barr stood behind a chair in the private dining room next to the Oval Office, looming over Donald Trump. The president sat at the head of the table. It was Dec. 1, nearly a month after the election, and Barr had some sharp advice to get off his chest. The president's theories about a stolen election, Barr told Trump, were "bullshit."
White House counsel Pat Cipollone and a few other aides in the room were shocked Barr had come out and said it — although they knew it was true. For good measure, the attorney general threw in a warning that the new legal team Trump was betting his future on was "clownish."
Trump had angrily dragged Barr in to explain himself after seeing a breaking AP story all over Twitter, with the headline: "Disputing Trump, Barr says no widespread election fraud." But Barr was not backing down. Three weeks later, he would be gone.
The relationship between the president and his attorney general was arguably the most consequential in Trump's Cabinet. And in the six months leading up to this meeting, the relationship between the two men had quietly disintegrated. Nobody was more loyal than Bill Barr. But for Trump, it was never enough.
The president had become too manic for even his most loyal allies, listening increasingly to the conspiracy theorists who echoed his own views and offered an illusion, an alternate reality…..
Read the full segment here.
Episode 5: The secret CIA plan
Trump vs. Gina — The president becomes increasingly rash and devises a plan to tamper with the nation's intelligence command.
In his final weeks in office, after losing the election to Joe Biden, President Donald Trump embarked on a vengeful exit strategy that included a hasty and ill-thought-out plan to jam up CIA Director Gina Haspel by firing her top deputy and replacing him with a protege of Republican Congressman Devin Nunes.
The plan stunned national security officials and almost blew up the leadership of the world's most powerful spy agency. Only a series of coincidences — and last minute interventions from Vice President Mike Pence and White House counsel Pat Cipollone — stopped it.
The ploy to rattle Haspel and perhaps intentionally trigger her resignation unfolded in a lurching and incompetent way, like a bad Monty Python skit, on one chaotic day in early December.
White House Chief of Staff Mark Meadows was ordered to fire — and then immediately unfire — the CIA's Deputy Director Vaughn Bishop.
In his place, Trump planned to install Kash Patel — a former top Intelligence Committee staffer to Nunes who had served on Trump's National Security Council but had no agency experience. In Trump's mind, this could potentially lead to Patel running the agency without needing to get Senate confirmation.
Trump had spent his last year in office ruminating over Haspel. Some of Trump's hardcore allies, including Fox Business host Maria Bartiromo, had been publicly raising doubts in his mind about her. He grew to distrust her and instead wanted a loyal ally at the top of the CIA.
She wasn't the only national security official the president wanted out…..
Read the full segment here.
