Tuesday, November 8, 2016
Calvin H. Johnson (Texas), Bought Law:
In 1991, Donald Trump bought a tax opinion from Wilkie Farr, a New York law firm, that allowed him to avoid tax on roughly a billion dollars of income. The legal theory behind the opinion is that there was no reduction of deductions if the banks traded their Trump-depleted debt for a partnership interest. The theory has neither the literal wording of the statute nor any court case on its said. Nonetheless the theory called Trump to keep a billion dollars of fake tax losses to shelter a billion dollars' of luxury consumption from tax when nothing was lost as a matter of economics.
We can state with a high degree of confidence that had the IRS challenged the theory in court, as its duty to God and Country required, it would have prevailed.