December 15th, 2015

Trump's reported $750 tax bill is smaller than the average payment for an American household making $20,000 a year

Donald Trump .JPGREUTERS/Kevin Lamarque

Summary List Placement

President Donald Trump paid only $750 in federal income taxes in 2016 and 2017, and none for many years before, according to a new bombshell report in The New York Times published Sunday.

The Times obtained tax-return data spanning almost two decades for the president and his companies. They indicated his small tax payments are a product of his business empire losing a substantial amount of cash.

"Trump's tax returns suggest he has only ever been successful as a showman, not at running actual businesses," Lily Batchelder, a tax law professor at New York University, wrote on Twitter.

The $750 figure is drawing a big amount of public attention. It's a substantially smaller tax bill compared to what millions of Americans owe the federal government every year.

"People with modest means pay more than that and I think that's really gonna get under people's skin," Seth Hanlon, a tax expert at the left-leaning Center for American Progress, told Business Insider.

He noted a single worker without children earning $18,000 annually would have paid $760 in income taxes in 2017 — an amount roughly equal to Trump, a self-professed billionaire who's long enjoyed a lavish lifestyle.

Batchelder shared a chart illustrating average tax payments for households during the first year of Trump's presidency.

Tweet Embed:
To give some perspective, here is how much households in each income group paid, on average, in 2017. Trump paid less than those earning under $5K, and less then every income group earning more than $20K. 3/x

The data — drawn from the IRS — shows Trump's tax payment is less compared to households earning between $20,000 and $25,000 each year. Around 9 million people filed tax returns in that group, said Matthew Gardner, a senior fellow at the Institute of Taxation and Economic Policy, a progressive think tank.

Hanlon said Trump's small tax bills were emblematic of "a broken tax code and a person who steps over the line."

"Business owners, especially in real estate, have lots of opportunities to avoid taxes that working people don't have," he said. "Trump seems to be taking full advantage of every deduction available to him legally and then some."

Read more: 3 top investing executives lay out the biggest risks to markets heading into a volatile election season — and share their best recommendations for navigating what happens next

Trump used a raft of expenses connected to his TV show "The Apprentice" — which businesses can write off — to reduce tax payments. Among them: $70,000 used to style his hair.

During a White House press conference on Sunday, Trump defended his tax practices. "I've paid a lot, and I paid a lot in state income taxes, too," he said.

Trump's tax maneuvers quickly drew criticism from Democrats. Joe Biden's presidential campaign quickly turned the $750 figure into a 30-second ad comparing the president's tax payments to those of essential workers such as teachers, firefighters, and nurses, who paid much more.

Tweet Embed:
Well that was quick — the Biden team just released their first ad on the reporting released today on Trump's taxes in the @nytimes

Top congressional Democrats also blasted Trump after the Times report.

"It is a sign of President Trump's disdain for America's working families that he has spent years abusing the tax code while passing a GOP Tax Scam for the rich that gives 83 percent of the benefits to the wealthiest 1 percent," House Speaker Nancy Pelosi said in a statement, referring to the 2017 Republican tax cuts.

NOW WATCH: What happens to animals during wildfires

See Also:

Data & News supplied by
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.