Mick Mulvaney concedes that tax is theft

While defending the Trump administrations budget proposals, Mick Mulvaney concedes that taxation is theft.

To be fair, his statement is in the context of what he considers bad expenditures, which apparently are social services for people who are too poor to pay tax. Some of whom are the people who voted for Trump, after he promised that he would bring their jobs back.

Apparently the tax breaks given to the rich will create the jobs.

Mulvaney has not explained how that will happen.

The poor can feel relieved that they will be saved from being branded as criminals. Whew.

Trump Towers, a few years ago

“Kids we need to need to plan.”

“What’s up?”

“It’s about depreciation.”

You love depreciation!

“I do, but at some point it’s going to catch up with us.”

“What do you mean?”

“Well you know how the tax code allows us to keep two separate sets of books, one for the banks and another for the IRS?”

“You’ve said that before, but I’ve never really understood how it works.”

“Well the banks value our properties at their current worth, and the IRS looks at the value of the properties at cost minus depreciation. That difference means that we can borrow against the full value of the properties, and write-off the interest and the depreciation against income for tax purposes. If we keep buying properties and writing off the depreciation plus the interest, we don’t pay tax on the difference in the values, until we sell them.”

“Well that’s simple then. Don’t sell them!”

“It also happens when I die!”

“What happens then?”

“The IRS takes all the depreciation written off over the years as income.”

“How much does it come to?”

“A lot!”

“So we’ll just sell a few of the properties to pay the taxes.”

“After you pay off the mortgages, there still won’t be enough cash.”

“So what do we do?”

“We need to change the tax code, especially the part that covers estate duty.”

“The politicians will never agree to that! Not even the Republicans.”

“There are a number of politicians who are very concerned about the complexity of the tax code. The person at the head of that queue is Paul Ryan. Even The Economist says that the tax code needs reform. We just need to make sure that the estate duty is done away with, or at least significantly reduced.”

“And how are you going to convince them to do that?”

“I’m going to become the next President!”

More at:
26 U.S. Code § 6103 – Confidentiality and disclosure of returns and return information
Donald Trump’s Deep Love Of Tax Depreciation – An Affair To Remember
Donald Trump’s Possible $0 Tax Bill – That’s Why People Do Commercial Real Estate Development
Fixing the Broken Tax Code
Fixing the tax sieve
How Donald Trump Uses the Tax Code in Ways You Can’t
Ok, so where are the tax returns
Simpler, fairer, possible
Trump and his empire may benefit if GOP secures tax reform as his returns stay hidden from the country
Trump owes us his tax returns now more than ever
Wallace Global Fund
What is Depreciation, and Why Was it Mentioned in Sunday Night’s Debate?

Ok, so where are the tax returns

Donald, now that’s there’s no longer a reason to withhold them, let’s see those tax returns.

We know about the losses that you made in the 90’s where you compromised your creditors, but took full value on the tax write-offs. We know that you write off the value of your properties, even while they increase in value. All of that’s legal, but it’s still tax avoidance.

It will be interesting to see how you lead an administration that must fix the tax avoidance problem, as an admitted master of that scourge. Can you turn on your kind?