Donald Trump’s tax revelations could lead to retaliation, widespread exposure

The release of financial details will tarnish the former US president’s reputation but it also risks retaliatory action that exposes US political figures of all stripes.

Despite reporting tens of millions of dollars in earnings each year, Donald Trump paid only $US750 ($1118) in tax in 2016 and 2017. Picture: Chandan Khanna / AFP

The imminent release of Donald Trump’s tax returns after a protracted legal battle intensifies the gloom surrounding the former president, but it could have far-reaching consequences for US political figures of all stripes.

As well as refusing to separate himself from any of his businesses that might create a conflict of interest in the White House, Trump was the first US president in modern times to refuse to publish his tax returns on taking office, justifying this break with tradition by claiming that he was under audit by the Inland Revenue Service.

Documents revealed by the Democratic-led House ways and means committee on Tuesday confirmed suspicions his claim was not true.

In fact, the IRS only launched an audit on the day the committee first requested Mr Trump’s returns in 2019, which triggered the legal struggle as he battled to keep his financial records under wraps.

The documents also suggest Mr Trump paid little or no income tax between 2015 and 2020. Despite reporting tens of millions of dollars in earnings each year, he paid only $US750 ($1118) in tax in 2016 and 2017.

In 2020 he paid nothing at all, claiming huge business losses that offset his income. Trump and his Republican allies have argued that the vote to release his returns is a politically motivated attack.

“If this injustice can happen to President Trump, it can happen to all Americans without cause,” his campaign said.

The Democrats argue that it was Mr Trump who first broke precedent by concealing his returns. With the Republicans preparing to take control of the House next year, however, a Republican-led committee could take retaliatory action to expose the tax returns of political rivals.

The chaos of the Trump presidency left US political norms broken in its wake. The battle to unravel the mystery of his tax returns threatens to shatter another.

The Times