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

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.


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.

FOLLOW THE MONEY

Corporations and billionaires don’t fund journalism like ours that exists to shake things up. Instead, support from readers allows Mother Jones to call it like it is without fear, favor, or false equivalence.

And right now, a longtime friend of Mother Jones has pledged an incredibly generous gift to inspire—and double—giving from online readers. That's huge! Because you can see that our fall fundraising drive is well behind the $325,000 we need to raise. So if you agree that in-depth, fiercely independent journalism matters right now, please support our work and help us raise the money it takes to keep Mother Jones charging hard. Your gift, and all online donations up to $94,000 total, will be matched and go twice as far—but only until the November 9 deadline.

$400,000 to go: Please help us pick up the pace!

payment methods

FOLLOW THE MONEY

Corporations and billionaires don’t fund journalism like ours that exists to shake things up. Instead, support from readers allows Mother Jones to call it like it is without fear, favor, or false equivalence.

And right now, a longtime friend of Mother Jones has pledged an incredibly generous gift to inspire—and double—giving from online readers. That's huge! Because you can see that our fall fundraising drive is well behind the $325,000 we need to raise. So if you agree that in-depth, fiercely independent journalism matters right now, please support our work and help us raise the money it takes to keep Mother Jones charging hard. Your gift, and all online donations up $94,000 total, will be matched and go twice as far—but only until the November 9 deadline.

$400,000 to go: Please help us pick up the pace!

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate