Advisors React to Times Report on Trump's Tax Returns

George W. Bush: $250,221

Barack Obama: $1,792,414

Donald Trump: $750

CPA Albert Campo tweeted that while the Times article about Trump's tax returns does raise questions and concerns, "the biggest concern we as tax preparers should have now are the incoming emails from clients asking: 'How can I pay no taxes like Trump?!'"

What Advisors Think

Financial planners queried by ThinkAdvisor revealed a smattering of opinions but a general consensus that the news would not impact Trump's reelection chances.

Jon Ulin, managing principal of Ulin Wealth Management & Co., in Baca Raton, Florida, said the news of "'The Don' paying minimal income taxes may do little to hurt his chances of getting re-elected, unless there was any wrong-doing in their preparation…

"While both candidates may have more than a few skeletons in their closets, bigger issues such as the pandemic and economy, along with future policies around taxes, social benefits, healthcare, trade and security of our country may be of greater importance to voters."

As for the Tuesday debate, "if candidates Trump and Biden can clearly communicate their policies that will affect us all for the next four years, and not jib-jabber over personal issues at the debates, perhaps voters will have a better understanding of what they are voting for."

Kashif Ahmed, president of American Private Wealth in Bedford, Massachusetts, opined that "if there is genuine tax avoidance that is within the law, then he will claim like he did in the past, that he is smart to take advantage of all the 'loopholes.' But for a self-claimed billionaire to pay what I spent at Costco this weekend alone, should raise some eyebrows."

Ahmed says he doubts any of Trump's "most loyal supporters will care" about the report's finding. "They will simply say 'look how smart he is.' And I doubt there are people left on the fence in this country. And plenty of people will see this [report] cynically, being that it came out so close to the election."

Nadine Marie Burns, president and CEO of A New Path Financial in Ann Arbor, Michigan, weighed in that "Trump and his firms own many properties and have the ability to take depreciation and business losses. The goal of most accountants is not to have their clients pay any more than required. Mr. Trump and his business do most likely pay vast amounts of property taxes on their establishments, as well as employment taxes for their employees.

"Just looking at federal tax rates does not give you a full picture. Does he pay insurance costs for these employees as well? What is his entire contribution to overall society? Does he pay a hair dresser for doing his TV hair — that person has a job now as well."

(Trump wrote off $70,000 in hairstyling expenses, according to the Times.)

Burns added: "More information is needed to make an assessment."

Robert Braglia of The Intelligent Decision in New York stated that he "still can't figure out if they want to demonstrate that he [Trump] is richer than he says or poorer. I'm more interested in how someone on a Congressional salary – 174k – for 43 years and a VP salary – 400k for four years and unemployed for four years manages to have THREE HOMES."

On the impact of the Times' report, "we'll know more in the coming weeks if this one sticks," said Shaun Melby of Melby Wealth in Nashville. "For the most part, I see this article reinforcing existing beliefs people have of President Trump. His supporters will love the idea he was able to not pay much in taxes while that exact same thought will madden his critics. There will be a handful of people this may sway, but I just don't see it moving the needle."

Melby added: "For most people, the nuances of the U.S. tax code are too complicated for the everyday taxpayer to wrap their head around when they are at the intricate level President Trump's tax returns are. The most concerning aspect of the article to me was that Trump's finances appear to be in a precarious position in the coming years."

— Related on ThinkAdvisor:

• Trump Paid Minimal Income Taxes in 2016, 2017: Report
• Gundlach Flirts With Fleeing California
• What Happens to the Economy and Markets After the Election?