Trump’s tax woes continue to be a focal point following Saturday’s New York Times piece that revealed Trump avoided federal income tax obligations for nearly two decades. And now it looks like Newsweek is jumping on the bandwagon as well.
A recent report uncovered that Donald Trump’s $915 million loss in 1995 was not by any means his first epic business failure. And Trump went to daddy for an unprecedented financial handout. $35 million to be exact, or luxury couch cushion change.
The latest information from Trump’s taxes are contained in the decades-old, little-read files of the Division of Gaming Enforcement for the New Jersey Department of Law and Public Safety. New Jersey officials compiled the records in 1980 and 1981 as a result of Trump’s quiet first effort to break into the casino business, several years before actually joining the gaming industry. Through Trump Plaza Corporation, a holding company incorporated in New Jersey the previous year, Trump applied for a casino license, setting off a state investigation of his background and his businesses.
This is when we learn that Trump is by no means a skilled businessman, but rather a petulant and spoiled man-child who had his rich father prop him up for much of his career.
The application came on almost the exact same day as the opening of the development Trump portrayed as his biggest success—the rebuilding of the Commodore Hotel in Midtown Manhattan into the Grand Hyatt New York. But Trump’s success in that deal—as well as every project that preceded it—came because he was born with a silver shovel in his mouth. His father, a major New York developer named Fred Trump, had personally guaranteed the construction loan from his banker at Chase Manhattan so that his son could do the project. Through that same banker, Fred Trump also arranged for Donald Trump to obtain a personal line of credit of $35 million at Chase Manhattan. In one more bit of evidence that the wealthy are not like you and me, the bank gave Trump the loan without even requiring a written agreement.
Now any businessman worth a penny (not 35 million dollars) would be careful with all that dough. They would guard it like the Night’s Watch in Game of Thrones. But Trump is a chimp with a loaded weapon who can’t be trusted with anything.
But Trump was unable to control his spending. He loaded himself up with debt from the credit line in an apparent belief that he could make enough money through other deals and investments to cover the interest payments. This was the same logic that led him to assume billions of dollars in borrowings during the late 1980s for the casinos, the almost incomprehensible business decision that led to their bankruptcies that played out for over a decade.
Trump’s entire raison d’être is that he’s a skilled businessman who’s so smart he doesn’t need to pay taxes like us peons, but the reality is that the Donald is nothing but a colossal screw up who only got ahead by virtue of being born into obscene wealth.
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