Back in 2012 I wrote a post kvetching about the political discourse concerning taxes. The issue was about the income tax and, specifically, Romney’s infamous 47% comment. At the time, the debate focused on whether the people who don’t pay income tax remain invested in the system. Most people were implying “no”, but I argued that they still pay taxes, in the form of property, sales, and payroll taxes. The only difference is that when tax-day rolls around, they do not owe anything else and often get a refund. These other taxes, which pay for roads and schools, and the refund itself—which means that they prepaid the taxes and are getting it back—mean that they are still invested in the system.
Now it is 2016 and one of the presidential candidates is a) refusing to release his tax returns and b) defending himself against accusations. After the New York Times published a tax form that showed nine hundred and fifteen million dollars in losses and alleged it was Donald Trump’s 1995 filing, the Trump campaign put out a press release. In it they defended the allegation that Trump didn’t need to pay taxes for 18 years because of this one huge loss, pointing out that it was only the federal income tax that was exempted and that Trump has paid millions of dollars in sales/property/excise/etc taxes. (We’ll ignore the statement about charitable giving that is, by most accounts, at best an exaggeration.) In other words, it is okay that Trump doesn’t pay federal income tax because he pays other taxes, just like everyone else. Note that the release does not directly claim that Trump is smarter than other people for not paying taxes, as he did in the debate, nor does it suggest that the tax dollars would be wasted.
The claim in the press release should be familiar after reading the two paragraphs. Other than the scale, it is the same argument I put forward in 2012 to say that not paying income tax is not the same thing as not being invested in the system. Unlike in 2012, the question is never whether or not Trump is invested in the system. Trump’s not paying income tax does not mean that he is not invested in the system, pardon the negatives. Trump wants to be invested in the system so that he can work the system, as his campaign claims about his intimate familiarity of the tax code or the blunt statements that he made political donations to get a seat at the table.
Nor, I should add, am I saying that he should pass up loopholes in the system, though I would prefer to close some of these exemptions. Right now I am talking about optics and discourse. Trump’s statement makes only a vague argument from the tax code, with an ambiguous claim to fix(sic) it.
Trump’s defense for not paying income tax is the same one that can be used in defense of people without money. The concrete position is I pay other taxes, so why is it a problem that I get out of paying income tax?. It is this doublethink that is stuck in my craw: the fact that when people who can barely afford food and shelter don’t pay income taxes they lack buy-in to the system, while a very wealthy person who doesn’t pay income taxes and defends it the same way the poorer people should, it makes him smart. I don’t want to get into the value judgement about what is equitable, but this sort of benefit of the doubt is certainly a privilege of the wealthy.