search
Sections List
American Journal News

Meet the working people who paid the price for Trump's gigantic tax deduction

With scant weeks remaining before Election Day, the bombshell NYT report that Donald Trump declared a $916 million loss in 1995 and may have paid no federal taxes in the ensuing years has rocked the political world. This is a story of ruined lives and wrecked companies left behind by Trump’s business failures. We wanted to know more about the […]

By Tommy Christopher - October 03, 2016
Share
Campaign 2016 Trump

With scant weeks remaining before Election Day, the bombshell NYT report that Donald Trump declared a $916 million loss in 1995 and may have paid no federal taxes in the ensuing years has rocked the political world. This is a story of ruined lives and wrecked companies left behind by Trump’s business failures.

We wanted to know more about the victims of his disastrous business and financial practices, people his own campaign manager once said had “suffered” at his hands.

Because Trump has refused to release his tax returns, we don’t know exactly how many years he has avoided paying taxes. We do know, however, that the failures that led to the massive 1995 write-off involved his three Atlantic City casinos, and that these failures also led Trump to stiff people like J. Michael Diehl, who was forced to take a $30,000 loss for pianos he sold to the Trump Taj Mahal in 1989. Diehl waited for months to be paid for his work, and the devastating 30% loss was the best the casino would offer him.

Then there is Paul Friel, who says his father’s cabinetmaking company was eventually put out of business after nearly 60 years thanks to Trump. The Edward J. Friel Company was contracted in the early 1980s to build cabinets for the slot machines at Trump Plaza, and they expected to receive a payment of $84,000 upon completion. But Trump bought out the contract from the general contractor and then refused to make the payment. Not only was Edward Friel unable to collect the money he was owed, he also found himself shut out of other Atlantic City projects, due, he believes, to Trump’s influence. Several years later, the company was forced to file for bankruptcy.

Another enormous loss was inflicted on the Jenkins family. Their company, Triad Building Specialties, installed toilet partitions at the Trump Taj Mahal, and wound up receiving only 30 cents on the dollar three years later following the Taj bankruptcy in 1991.

These are just a few of the many people who have been stiffed by Trump in the past and the present, but their stories have been given new life by the Times report, and so cable news is beginning to put faces to some of the names in those accounts:

If these stories aren’t galling enough, there’s one more detail that the Times hints at, and which a release of Trump’s actual tax returns could confirm. While many of the contractors who worked on Trump’s casinos wound up having to settle for pennies on the dollar, if they survived at all, Trump’s sweet tax deal means that he probably didn’t even pay taxes on the money they had to write off to him (emphasis mine):

Reports by New Jersey’s casino regulators strongly suggested that Mr. Trump had claimed large net operating losses on his taxes in the early 1990s. Their reports, for example, revealed that Mr. Trump had carried forward net operating losses in both 1991 and 1993. What’s more, the reports said the losses he claimed were large enough to virtually cancel out any taxes he might owe on the millions of dollars of debt that was being forgiven by his creditors. (The I.R.S. considers forgiven debt to be taxable income.)

That means that the taxpayers, who presumably included folks like Diehl, the Jenkins family, and the Friels, ate the cost of what Trump should have paid on those forgiven debts as well as potentially 18 years worth of his income taxes.

Hillary Clinton has been making Trump’s atrocious business record a focus of her campaign for quite some time, but it looks like the stories of small businesses and hourly employees swindled by Trump are beginning to break through, just in time for the second presidential debate.

(Peter Daou and Alison R. Parker contributed to this article)


Read More
Biden campaign launches new ad focused on Affordable Care Act

Biden campaign launches new ad focused on Affordable Care Act

By Kim Lyons, Pennsylvania Capital-Star - May 08, 2024
Trump leaves door open to banning medication abortion nationwide

Trump leaves door open to banning medication abortion nationwide

By Jennifer Shutt, States Newsroom - April 30, 2024
Biden on abortion rights: President expects to give speech Tuesday on new Florida 6-week ban

Biden on abortion rights: President expects to give speech Tuesday on new Florida 6-week ban

By Mitch Perry, Florida Phoenix - April 22, 2024
Biden calls for expanded child tax credit, taxes on wealthy in $7.2 trillion budget plan

Biden calls for expanded child tax credit, taxes on wealthy in $7.2 trillion budget plan

By Jennifer Shutt, States Newsroom - March 11, 2024
Biden rallies Democrats in Las Vegas: ‘Imagine the nightmare’ if Trump reelected

Biden rallies Democrats in Las Vegas: ‘Imagine the nightmare’ if Trump reelected

By April Corbin Girnus, Nevada Current - February 05, 2024
UAW delivers rousing presidential endorsement for Biden over ‘scab’ Trump

UAW delivers rousing presidential endorsement for Biden over ‘scab’ Trump

By Ashley Murray, States Newsroom - January 24, 2024
AJ News
Latest
Florida abortion ban puts GOP Rep. Anna Paulina Luna’s anti-choice views in spotlight

Florida abortion ban puts GOP Rep. Anna Paulina Luna’s anti-choice views in spotlight

By Jesse Valentine - May 07, 2024
Trump leaves door open to banning medication abortion nationwide

Trump leaves door open to banning medication abortion nationwide

By Jennifer Shutt, States Newsroom - April 30, 2024
Republican Caroleene Dobson wants Alabama abortion ban to go nationwide

Republican Caroleene Dobson wants Alabama abortion ban to go nationwide

By Jesse Valentine - April 30, 2024
Ohio Gov. DeWine said he didn’t know of millions in FirstEnergy support. Is it plausible?

Ohio Gov. DeWine said he didn’t know of millions in FirstEnergy support. Is it plausible?

By Marty Schladen, Ohio Capital Journal - April 29, 2024
GOP Rep. Zach Nunn suggests laws against hate crime aren’t needed

GOP Rep. Zach Nunn suggests laws against hate crime aren’t needed

By Jesse Valentine - April 15, 2024
GOP Senate candidate Hung Cao blames racial equity for Baltimore bridge tragedy

GOP Senate candidate Hung Cao blames racial equity for Baltimore bridge tragedy

By Jesse Valentine - March 29, 2024
GOP Rep. Jennifer Kiggans donates thousands to far-right extremists

GOP Rep. Jennifer Kiggans donates thousands to far-right extremists

By Jesse Valentine - March 08, 2024
Ohio senate candidate Bernie Moreno: “Absolute pro-life no exceptions.”

Ohio senate candidate Bernie Moreno: “Absolute pro-life no exceptions.”

By Jesse Valentine - March 07, 2024
Anti-China Republicans pocket thousands from Chinese owned conglomerate

Anti-China Republicans pocket thousands from Chinese owned conglomerate

By Jesse Valentine - March 04, 2024
Republican Eric Hovde makes inconsistent statements about family history

Republican Eric Hovde makes inconsistent statements about family history

By Jesse Valentine - February 26, 2024
Republican David McCormick invests millions in website that platforms Holocaust denial

Republican David McCormick invests millions in website that platforms Holocaust denial

By Jesse Valentine - February 09, 2024
Lawmakers will again take up bills expanding, tightening gun laws

Lawmakers will again take up bills expanding, tightening gun laws

By Annmarie Timmins, New Hampshire Bulletin - January 31, 2024
UAW delivers rousing presidential endorsement for Biden over ‘scab’ Trump

UAW delivers rousing presidential endorsement for Biden over ‘scab’ Trump

By Ashley Murray, States Newsroom - January 24, 2024
Republicans Sam Brown and Jeff Gunter sling mud in Nevada senate primary

Republicans Sam Brown and Jeff Gunter sling mud in Nevada senate primary

By Jesse Valentine - January 17, 2024
A Young Texas Woman Almost Died Due To The Texas Abortion Bans – Now She’s Battling To Save Other Women

A Young Texas Woman Almost Died Due To The Texas Abortion Bans – Now She’s Battling To Save Other Women

By Bonnie Fuller - January 10, 2024
Health care legislation preview: Maryland advocates want to focus on access, patients in 2024 session

Health care legislation preview: Maryland advocates want to focus on access, patients in 2024 session

By Danielle J. Brown, Maryland Matters - January 08, 2024
How GOP senate hopefuls try to excuse the  January 6 insurrection

How GOP senate hopefuls try to excuse the  January 6 insurrection

By Jesse Valentine - January 05, 2024
NH lawmakers will be taking up major voting bills this year. Here are some to watch for.

NH lawmakers will be taking up major voting bills this year. Here are some to watch for.

By Ethan DeWitt, New Hampshire Bulletin - January 04, 2024
Republican US Senate candidates want to make Trump’s tax cuts permanent 

Republican US Senate candidates want to make Trump’s tax cuts permanent 

By Jesse Valentine - December 22, 2023
Rand Paul went all in on the Kentucky governor’s race. It didn’t work.

Rand Paul went all in on the Kentucky governor’s race. It didn’t work.

By - December 15, 2023
Texas governor and attorney general do little to curb state’s chemical plant crisis

Texas governor and attorney general do little to curb state’s chemical plant crisis

By Jesse Valentine - December 08, 2023
Likely GOP Senate candidate Eric Hovde proposed tax hike for poorer workers and retirees

Likely GOP Senate candidate Eric Hovde proposed tax hike for poorer workers and retirees

By Jesse Valentine - December 07, 2023
Whitmer signs specific criminal penalties for assaulting health care workers into law

Whitmer signs specific criminal penalties for assaulting health care workers into law

By Anna Liz Nichols, Michigan Advance - December 06, 2023
105 Republicans voted to expel Santos for things Trump has also done

105 Republicans voted to expel Santos for things Trump has also done

By Jesse Valentine - December 05, 2023
For Texas Sen. Ted Cruz, another Trump term is another chance to kill Obamacare

For Texas Sen. Ted Cruz, another Trump term is another chance to kill Obamacare

By Jesse Valentine - December 04, 2023
Florida Sen. Rick Scott backs Donald Trump in revived push to repeal Obamacare

Florida Sen. Rick Scott backs Donald Trump in revived push to repeal Obamacare

By Jesse Valentine - November 30, 2023
Tate Reeves took donations from power company that hiked customer rates

Tate Reeves took donations from power company that hiked customer rates

By Jesse Valentine - November 06, 2023
Daniel Cameron ran on depoliticizing the Kentucky AG’s office. He made it more political.

Daniel Cameron ran on depoliticizing the Kentucky AG’s office. He made it more political.

By Jesse Valentine - November 03, 2023
Republican operatives sound every alarm on current trajectory of 2023 governor’s race

Republican operatives sound every alarm on current trajectory of 2023 governor’s race

By Adam Ganucheau, Mississippi Today - October 24, 2023
Biden campaign launches new ad focused on Affordable Care Act

Biden campaign launches new ad focused on Affordable Care Act

By Kim Lyons, Pennsylvania Capital-Star - May 08, 2024
Fate of ‘game changer’ women’s health care bill in hands of Missouri Senate

Fate of ‘game changer’ women’s health care bill in hands of Missouri Senate

By Anna Spoerre, Missouri Independent - May 08, 2024
Republican Kari Lake attacks Democratic opponent with deceitful, inaccurate ad

Republican Kari Lake attacks Democratic opponent with deceitful, inaccurate ad

By Jesse Valentine - April 30, 2024