Until this week, I lived in a wonderful state of
ignorance, leading a life that suited me well, being kind to old ladies
crossing a road, ruffling the heads of children as they played, rarely speeding,
and altogether trying to be a worthwhile member of society. And then, AMT
descended upon me, disturbing not only my equilibrium but, as Star Wars fans
would term it, “The Force.” I had my Mario Balotelli moment. “Why me?”[1] Why did AMT have to raise
its ugly head now when all was right with my world, with the exception of one
or two little things, like expenditure exceeding income, not to mention a pain
in my back?
If you are still with me, I suspect you’ll be
asking, WTF is AMT? The latter stands for “alternative minimum tax.” It is a
tax imposed by the American government to ensure the mega wealthy pay a fairer
share of tax. We now know in 2005, President Trump was targeted by the AMT police
because a two-page section of his tax return has been published by MSNBC. It
disclosed that the President paid $38m in federal taxes on more than $150m
income. He was then trapped by a tax rule that he has now promised to abolish.
If he puts the proposal to Congress, will he be accused of yet another conflict
of interest? A point of interest is the level of income he enjoyed twelve years
ago and his phenomenal contribution to the US Treasury. If his income has
remained at similar levels, by any definition he is an uber-rich man.
Mr Trump took exception to
the disclosure, with good reason. The White House accused MSNBC of violating a
federal law that prohibits the unauthorised release of tax returns. It is
illegal to publish an unauthorised tax return or "return
information." Any violation of the law is treated as a felony punishable
by a fine in any amount not exceeding $5,000, or imprisonment of not more than
5 years. It is a serious offence. In response, MSNBC claimed First Amendment
privilege. If a media organisation has not conspired to steal material or obtain
it from government but simply received it from a private citizen, a criminal conviction
is uncertain.[2]
So if the President wants to take the matter further, an interesting clash would
develop. Do federal laws on disclosure trump – pardon the expression - the Bill
of Rights?
The
President’s tax history has been under scrutiny since he launched his Presidential
campaign. Both Democrats and Republicans and more than a million petitioners
have demanded to see his tax returns. During the campaign, Mr Trump first said
he would release them once an audit was completed. Then he made a U turn and,
just two days after his inauguration, White House adviser Kellyanne Conway announced
the President was not going to release his tax returns because “people didn’t
care.” You have to admit that Conway is nothing but consistent in her daft
public announcements. Such an abrupt refusal followed months of Trump dancing
around the issue.
This
time, Mr.Trump has law on his side. Individual income tax returns are
private information, protected by law from unauthorized disclosure. Indeed, the
Internal Revenue Service is barred from releasing any taxpayer information
whatsoever, except to authorized agencies and individuals. Like all other
citizens, U.S. Presidents enjoy this protection of their privacy.
However, it is not Presidential to hide or appear
to hide behind the law. The American people look upon their Presidents as
people who have climbed above the hurly-burly of politics and whose
responsibilities and obligations are much greater than mere compliance with the
law. There is a perceived morality to the Presidency. This office has a higher
duty than other political offices. Failure to disclose might cause a
presumption that Mr Trump has something to hide.
President Obama was excused from disclosure but
it was felt unnecessary because his income was known to be solely his
government salary and royalties from his books. His capital assets comprised
only government bonds. President George W Bush released partial information but
before him Presidents Clinton, Bush, Reagan, Carter and Nixon made full
disclosure. Oddly, Gerald Ford released only summary data. Neither Presidents
Johnson, Kennedy nor Eisenhower released any tax information but Truman made
full disclosure. FDR released no returns during his Presidency but returns are
made available in the Roosevelt Library.
I feel some sympathy for Mr Trump. He is a
successful businessman, a self-proclaimed billionaire whose tax affairs will be
complex. I know of no serious allegations that he has cheated on his taxes or
has broken any tax laws. Indeed, it seems he is audited regularly, thus the IRS
must be satisfied with his compliance. However, if the President maintains his
refusal to disclose details of his tax affairs, it could result in another
brick in the wall being constructed by his many opponents, a wall in which he,
not Mexicans, will be enclosed.
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[1] Mario Ballotelli
was a Premier League footballer, constantly in trouble with the authorities
both on and off the pitch. He habitually claimed persecution with the cri de coeur,
“why me?”
[2] MSNBC journalist,
David Cay Johnson, said he had been sent the two-page tax summary “over the
transom”, i.e. unsolicited. No evidence has been produced so far to identify
the anonymous sender.
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