The Fiscal Impact of Tax Evasion: A Trump-Style Tax Strategy

Recently, the exposure of Donald Trump's tax returns through MSNBC and other major media outlets has sparked discussions about the implications of a tax strategy similar to his. Given the controversy surrounding his reported tax payments, this article delves into the potential fiscal consequences if everyone followed a similarly evasive tax strategy.

The Trump Tax Strategy: A 25% Payment Gap?

Rachel Maddow, host of MSNBC, famously obtained a copy of Trump's tax returns, revealing that he paid 38 million dollars in taxes at a rate of 25%. This information has led many to question whether a flat tax rate of 25% is sufficient, especially when one considers the implications for the broader economy and national debt.

The Debt Ceiling and Inflation

If everyone were to follow this tax strategy, the US would find itself in a deeply troubling situation. The likely scenario would be an increase in the debt ceiling, followed by the creation of more currency to pay off the debt. Essentially, this would lead to inflation, devaluing the dollar and reducing the purchasing power of everyone.

Based on Trump's business record, it seems plausible that he would advocate for such a strategy if elected. However, the reality is that it is not feasible to bankrupt a country; the government can always print more money, albeit at the cost of diminishing the value of existing currency holdings. For someone like Trump, it would simply be a novelty to avoid bankruptcy.

Questioning the Current Tax System

The discussion around Trump's tax strategy raises fundamental questions about the tax system itself. Why can billionaires like Trump avoid paying taxes while others dutifully fulfill their legal duty to do so? Has this state of affairs been exacerbated by politicians like Hillary Clinton, who has been part of creating such a tax code?

Some key points to consider:

If Trump gets audited every year, it suggests that his strategy is legal or he would face charges. This brings into question the auditors and legal experts involved in his tax planning. Due to the complexity of the tax code, it's unlikely that anyone would pay more than the legally required amount without a significant benefit or moral imperative. The government, led by Hillary Clinton, has been complicit in shaping the current tax code, which favors the wealthy and may not be in the interest of the public. Accountants and attorneys working for the ultra-wealthy have a responsibility to remain ethical and not set them up to pay more than required.

Consequences of Tax Evasion

Tax evasion, similar to Trump's strategy, has far-reaching consequences beyond just the individual. If implemented on a national scale, it would mean:

No government services for the vulnerable, including the disabled and elderly. No funding for essential public infrastructure such as bridges, roads, water systems, and power grids. No investment in public education and security efforts to counter potential threats.

Conclusion

The tax strategy of someone like Donald Trump, if adopted by the general public, would have serious fiscal implications for the United States. It might seem novel or even patriotic for individuals to avoid paying taxes, but the broader impact would be devastating. As consumers, taxpayers, and citizens, it is essential to consider the long-term consequences of such strategies and advocate for a fair and just tax system.