Trump’s Tax Return Suggests He’s the Most Incompetent Billionaire in the Nation

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Tonight’s exciting news: David Cay Johnston somehow got hold of the first page of Donald Trump’s 2005 federal tax return. He released it on the Rachel Maddow show tonight:

Here are Trump’s major sources of income:

  • Interest income: $9 million
  • Business income: $42 million
  • Capital gains: $32 million
  • Rental income: $67 million
  • Miscellaneous: $2 million
  • Total: $152 million

After a writeoff of $103 million, his adjusted gross income clocked in at $49 million. His taxable income came in at $31 million and his tax bill for this was $5 million. That’s a tax rate of about 3 percent. Ka-ching!

Sadly for Trump, the Alternative Minimum Tax kicked in, which meant he had to pay $38 million in taxes. I guess it’s no wonder that Trump doesn’t think very highly of the Alternative Minimum Tax.

Without more pages from his tax return, there’s a limit to what we can learn from this. Trump’s income of $150 million fits fairly well with the estimates I’ve seen. But I will add one thing.

Trump’s total investment income was $108 million, and Trump claims to be worth $5 billion or so, depending on what day you ask him. That means he earned a return on his assets of about 2 percent. In 2005! During the housing bubble! I’m no tax expert, and maybe he had hundreds of millions in capital gains that he didn’t realize that year. Who needs more than $150 million in income, after all? It still seems pretty low, though, and if Trump really did earn a return of only 2 percent he is, by long odds, the most incompetent billionaire in the country.

Alternatively, of course, Trump is actually worth about $1-2 billion and he earned something like a 5-10 percent return. Take your pick.

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THE TRUTH...

is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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