Donald Trump suffered a $916 million loss in 1995 which may have allowed him to avoid paying federal taxes for almost two decades.
The GOP presidential candidate himself said he was “smart” for using the loopholes in U.S. tax laws and getting away with paying as little as legally possible.
Since the start of his presidential campaign, the billionaire real estate mogul has blasted others for evading taxes — including undocumented immigrants whom he has dubbed an economic burden and claimed wrongly were getting $4.2 billion in tax credits.
However, in the third presidential debate, his Democratic rival Hillary Clinton let go off a zinger that belied his claims.
“We have undocumented immigrants in America who are paying more federal income tax than a billionaire,” Clinton said, saying they cannot know whether Trump Foundation’s money goes to charities because he refuses to reveal his tax information.
Do illegal immigrants really contribute more than billionaires? Yes, they do and shame on Trump for lying.
A research study from the Institute of Taxation and Economy Policy revealed that immigrants without legal permission pay billions in the form of income, sales, property or excise tax, just like others living in the country — even though, lacking permission to be in the U.S. means they get much lower incomes than their legal counterparts. In 2013, there were an estimated 11 million immigrants in the United States and each state collected at least a few million dollars in taxes by the immigrants residing in them.
In the report, undocumented immigrants were found to pay $11.64 billion in miscellaneous taxes with at least half of them having registered individual Tax ID numbers. Many who have not registered for tax still have their taxes cut from their paychecks. Out of the nearly $12 billion total, $6.9 billion are paid as sales and excise taxes, $3.6 billion paid as property taxes and $1.1 billion paid in property taxes.
Approximately 75 percent of the population is estimated to pay into the U.S. Social Security system — benefits they won’t be receiving anyway unless they become legal U.S. citizens.
Looking at the total income paid, the report deduces that the average tax rate for illegal immigrants is actually higher than the rate paid by the country’s highest earners.
If all these immigrants were granted citizenship which will allow them to earn on par with registered immigrants, tax contribution could be boosted by an astounding $2.1 billion.