Patton: Hillary Releases Tax Returns; Trump Won't

Hillary and Bill Clinton have released their joint 2015 federal tax returns. The Clintons earned $10.6 million in 2015, and paid an effective tax rate of 30.6 percent. The wealthiest Americans pay about 25 percent; the average American pays around 10 percent. (NPR Politics, 8/12/2016). Hillary Clinton has now released 39 years of federal tax returns over the course of her career.

"Monica Prasad, a Northwestern University sociologist who focuses on taxes, noted in an email that the Clinton's rate may be higher, too, because 'she's not taking advantage of all the deductions and exemptions that other high earners take advantage of.'") . . .

"They earn a lot of income and they paid a lot of taxes. That's the way the system is supposed to work. William Gale. a co-director of the Urban-Brookings Tax Policy Center in Washington D.C. told me." (Nora Kelly, The Atlantic, 8/12/2016)

Indeed, the Clintons have satisfied the Buffett Rule, proposed by billionaire Warren Buffett, whereby anyone with adjusted gross income of more than $1 million should pay a minimum of 30 percent in federal taxes.

The Clintons gave $1 million to their private Clinton Family Foundation, which is different from the Clinton Foundation that has been in the news.

Hillary's running mate, Tim Kaine, along with his wife Anne, reported an adjusted annual income during 2015 of $313,441 upon which they paid $63,000 in federal income tax for an effective rate of 20 percent.

By contrast, Donald Trump has consistently refused to release his federal income tax returns, and has offered a variety of flimsy excuses. At first, he claimed that he wouldn't do so because his taxes were under audit. However,"nothing , including an audit, 'prevents individuals from sharing their income tax information,' an IRS spokesman said." (Drew Harwell, Washington Post, 5/20/2016). Indeed former president Richard Nixon did so while under investigation for the Watergate scandal.

Other unlikely arguments offered by the Trump campaign included (a) there is nothing important to be learned from them, (b) Trump's tax returns are too complicated for the general public to understand, and (c) it's none of your business. Nonetheless, critics continue to press for release of his returns.

Why are Trump's tax returns important? They may tell us (a) does Trump has any conflicts of interests, particularly with Russia, which might influence his decisions as president; (b) does Trump pay any taxes at all; (c) is he as rich as he claims to be; (d) is he keeping money off- shore; (e) does he abuse tax loopholes; and (f) does Trump give as much to charity as he claims?

"In recent months, news organizations have unearthed public records that give a glimpse of what Mr. Trump paid in income taxes for eight of the last 41 years. The records show Mr. Trump paid income taxes in 1975, 1976, and 1977 about $71,000 in all from a total reported income of about $218,000 over those three years. For three other years - 1978, 1979 and 1984 - records how Mr. Trump paid no income taxes at all. In 1991 and 1993, New Jersey gambling commission records indicate he paid little or no income taxes.

"Given the expansive web of tax breaks available to real estate developers (like Trump), tax experts say it would not be surprising if Mr. Trump paid little or no income taxes in the other 33 years during this time span, even as he amassed billions of dollars in wealth. (Steve Ederaug, New York Times, 8/12/2016.

Even leading Republicans are urging Trump to release his taxes.

Republican Sen. Mitch McConnell, the Majority leader of the United State Senate, said, "For the last 30 or 40 years, every candidate for president has released their tax returns, and I think Donald Trump should as well."

Mitt Romney, the Republican presidential candidate in 2012, commented, "We will only really know if he's a real deal or a phony if he releases his tax returns."

Ted Cruz, Republican Senator from Texas, noted "He doesn't want to do it because presumably there is something in there that is bad."

George Will, well-known conservative columnist, remarked, "That's one more reason why we're not seeing his tax returns because he is deeply involved in dealing with Russian oligarchs."

Even Donald Trump thinks Donald Trump should release his tax returns. In a 2012 interview recorded before Trump started running for president, he said, "You know if you're running at a minimum probably you're going to have to show your returns. If you didn't see the tax returns, you would think there is almost like, something's wrong, What's wrong."

Indeed, Mr. Trump, that's exactly what we're thinking. What's wrong? What's wrong?

Gary Patton is the author of two books, Selling Mt. Washington, a political satire, and Outtastatahs: Newcomers' Adventures in New Hampshire, a work of regional humor.