Last updated on September 25th, 2023 at 02:04 pm
Sen. Bernie Sanders is taking action against billionaires like Trump who dodge taxes with new legislation that closes the wealthy’s tax avoidance loopholes.
In a statement, Sen. Sanders said, “Special tax breaks and loopholes in a corrupt tax code enable billionaires and powerful corporations to avoid paying their fair share of taxes while sticking the burden on the middle class. It’s time to create a tax system which is fair and which asks the wealthy and powerful to start paying their fair share of taxes.”
Here is the list of loopholes that Sen. Sanders is trying to close:
Exemption for real estate from passive loss rules. (Section 469)
The passive loss rules, enacted as part of President Ronald Reagan’s Tax Reform Act of 1986, generally bar taxpayers from using losses from a business the taxpayer is not really involved in to offset active income. An exception was made for real estate, meaning Trump can use his real estate losses to offset any other income, whether it is book royalties or compensation for starring on the Apprentice.
Exemption for real estate from at-risk rules. (Section 465)
Also enacted as part of the Tax Reform Act of 1986, the at-risk rules bar taxpayers from claiming losses for investment beyond the money they put in or that they are directly liable for. Again, real estate was largely exempted, meaning Trump could claim losses exceeding what he actually invested.
Like-kind exchanges. (Section 1031)
Usually, capital gains on property are taxed when the property is sold, but taxpayers can swap pieces of property of the same type and claim that they have no gain to report to the IRS because there was technically no sale. The exchanges are often a sham because they often involve vastly different properties.
Debt and Depreciation.
Under current law, investors can combine tax breaks for borrowing with tax breaks when an investment rapidly loses values. So an investor like Trump can borrow money to make an investment, take deductions for the interest he pays on the debt and take deductions if the property depreciates.
Bernie Sanders is literally out to make Donald Trump pay.
Freeriders like Donald Trump hurt the US economy by taking advantage of public services while not paying their fair share of the bill. What Donald Trump did wasn’t smart. It was selfish. Trump expects people who are struggling to keep the lights on and food on the table to subsidize him.
When billionaires like Donald Trump pay what they should be paying, it lessens the burden on everyone else.
Bernie Sanders is planning to drop the hammer on tax-avoiding billionaires like Donald Trump when the next session of Congress gavels in, and if Hillary Clinton wins the White House, Sanders will have a president standing by and ready to sign his legislation if Democrats can get it through Congress.
Donald Trump is about to be steamrolled by the political revolution of Bernie Sanders.
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