National

Josh Marshall thinks there is more, much more on the horizon with Donald and his taxes (or lack thereof).

After thinking over the Times revelation, I wonder whether there's a much, much bigger story here that the Times didn't put together or more likely did see but couldn't prove. In any case, here's what I'm thinking. We've known for years that the collapse of Trump's debt ridden casino empire in Atlantic City almost destroyed him more than two decades ago. He was able to wriggle through by a number of angles and connivances. But one of the biggest was that he was able to convince his lenders that they'd be even worse off if he was cleaned out and removed from the picture entirely. Convincing them that he was in essence too big or too important to fail, they took major 'haircuts' (losses) that allowed him to survive. He got others to absorb the impact of the losses, repackaged other parts and put them through bankruptcy, etc. The key question is how much of the Atlantic City losses did Trump absorb in real terms? How much of those losses were forgiven or written off formally? And perhaps most importantly, how much of those losses were squirreled away or 'parked' in places which effectively put them in a sort of limbo or suspended animation - neither truly absorbed nor forgiven? Here's where the Times revelation comes into play. If you sustain real capital losses, you can apply those losses to cancel out future income/profits and reduce your tax liability. But if your losses are canceled out by debt forgiveness, the debt forgiveness is counted as income. That cancels out the losses that would provide you with the tax benefit. In other words, you can't have your cake and eat it too.

At the end of this campaign, more likely than not, Donald Trump will be arrested for tax evasion on hundreds of millions of dollars of income. And then he will be locked up.

Donald Trump “declared a $916 million loss on his 1995 income tax returns, a tax deduction so substantial it could have allowed him to legally avoid paying any federal income taxes for up to 18 years,” records obtained by the New York Times show. “The 1995 tax records, never before disclosed, reveal the extraordinary tax benefits that Mr. Trump, the Republican presidential nominee, derived from the financial wreckage he left behind in the early 1990s through mismanagement of three Atlantic City casinos, his ill-fated foray into the airline business and his ill-timed purchase of the Plaza Hotel in Manhattan.” “Tax experts hired by The Times to analyze Mr. Trump’s 1995 records said that tax rules especially advantageous to wealthy filers would have allowed Mr. Trump to use his $916 million loss to cancel out an equivalent amount of taxable income over an 18-year period.”

Jason gets his wish. “As the last full month of this presidential contest begins, Hillary Clinton is shifting toward a pure base-turnout strategy, inching away from her all-out effort to lure disaffected Republicans in favor of a traditional get-Democrats-to-the-polls effort that mirrors Barack Obama’s 2012 game-plan,” Politico reports. “Gone are Clinton’s regular references to winning over moderate conservatives and her sly allusions to GOP leaders meant to give defecting Republicans a framework for abandoning their nominee. With 39 days to go, Brooklyn headquarters and battleground state operatives are activating the massive surrogate machinery, a heavy early voting push, and a large-scale registration offensive they think they need to secure a win in November.”

This plan would be an economic boon to New Castle, Delaware City, Port Penn, Leipsic, Little Creek, Bowers Beach, Milford, Lincoln, Ellendale, Georgetown, and Lewes.