While the headline topic above is just a joke (most of you would know that), what really happened will come as no surprise. Donald Trump and the Trump family have been in real estate for three generations. That same family group has recently invested heavily in the crypto market.
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Which two industries just received hundreds of billions of dollars in tax breaks awarded by the Trump-controlled Treasury Department and IRS. If you just blurted out real estate and crypto, give yourself a kewpie doll. Yes, using a loophole, the Treasury has enacted unlegislated tax cuts that reward these two industries. This recent cut to the Alternative Minimum Tax (designed to keep large corporations and the uber-wealthy paying at least some tax) is in addition to the $4 trillion package of cuts signed into law in July.
Those earlier cuts allowed multinationals to avoid taxes by, among other things, claiming duplicate losses in multiple countries at once. These recent actions will contribute hundreds of billions of dollars to the federal deficit and will be in addition to the trillions of dollars from the July billionaire bonanza.
As the New York Times reported recently, “A holy grail of tax planning is figuring out a deduction that businesses can claim on their tax return — but one that they don’t report to investors, which would dent their profits, potentially hurt their stock price and thus depress compensation paid to executives.” The minimum tax also hit the crypto market who sought a special “carve out”. Trump to the rescue. As a new crypto industry participant, he has been kind to crypto.
How does any of this impact the “little guy”? To quote Tennessee Earnie Ford, “Another day older and deeper in debt.”
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