2018-10-03 00:14:16 UTC
An exhaustive and meticulously reported New York Times investigation that was
unleashed on the world on Tuesday has confirmed what weve known all along: rich
people are shady motherfuckers who feel no shame in gaming the systemand the
shadiest of them all was perhaps the Trump family, which amassed their hundreds
of millions on the back of cheap government loans, federal subsidies, fraud, and
a truly astounding amount of tax evasion. And it turns outwowthat Donald
Trump, far from a self-made millionaire (he has repeatedly asserted that I
built what I built myself), relied on a whole lot of help from Daddy Trump to
finance his real estate deals and bail him out over and over again through the
The report details how Fred Trump built his real estate empireand then, using
highly suspect and all-around shady methods, transferred his wealth to his sons
and daughters, including at least $413 million to Donald alone.
Read some choice excerpts below:
Fred Trump began throwing money at Donald when he was just a toddler:
By age 3, Mr. Trump was earning $200,000 a year in todays dollars from his
fathers empire. He was a millionaire by age 8. By the time he was 17, his
father had given him part ownership of a 52-unit apartment building. Soon after
Mr. Trump graduated from college, he was receiving the equivalent of $1 million
a year from his father. The money increased with the years, to more than $5
million annually in his 40s and 50s.
Fred loved to avoid paying taxes, using possibly illegal methods...:
Fred Trump was relentless and creative in finding ways to channel this wealth to
his children. He made Donald not just his salaried employee but also his
property manager, landlord, banker and consultant. He gave him loan after loan,
many never repaid. He provided money for his car, money for his employees, money
to buy stocks, money for his first Manhattan offices and money to renovate those
offices. He gave him three trust funds. He gave him shares in multiple
partnerships. He gave him $10,000 Christmas checks. He gave him laundry revenue
from his buildings.
Much of his giving was structured to sidestep gift and inheritance taxes using
methods tax experts described to The Times as improper or possibly illegal.
Although Fred Trump became wealthy with help from federal housing subsidies, he
insisted that it was manifestly unfair for the government to tax his fortune as
it passed to his children. When he was in his 80s and beginning to slide into
dementia, evading gift and estate taxes became a family affair, with Donald
Trump playing a crucial role, interviews and newly obtained documents show.
The richest Americans almost never pay anything close to full freight. But tax
experts briefed on The Timess findings said the Trumps appeared to have done
more than exploit legal loopholes. They said the conduct described here
represented a pattern of deception and obfuscation, particularly about the value
of Fred Trumps real estate, that repeatedly prevented the I.R.S. from taxing
large transfers of wealth to his children.
Donald reportedly tried to scam his own scammer dad (!!!):
Even so, in 1990, according to previously secret depositions, Mr. Trump tried to
have his fathers will rewritten in a way that Fred Trump, alarmed and angered,
feared could result in his empires being used to bail out his sons failing
Fred Trump took prompt action to thwart his son. He dispatched his daughter to
find new estate lawyers. One of them took notes on the instructions she passed
on from her father: Protect assets from DJT, Donalds creditors. The lawyers
quickly drafted a new codicil stripping Donald Trump of sole control over his
fathers estate. Fred Trump signed it immediately.
Donald seems to have some deep-seated daddy issues:
Donald Trump went to work for his father after graduating from the University of
Pennsylvania in 1968. His father made him vice president of dozens of companies.
This was also the moment Fred Trump telegraphed what had become painfully
obvious to his family and employees: He did not consider his eldest son, Fred
Trump Jr., a viable heir apparent.
Fred Jr., seven and a half years older than Donald, had also worked for his
father after college. It did not go well, relatives and former employees said in
interviews. Fred Trump openly ridiculed him for being too nice, too soft, too
lazy, too fond of drink. He frowned on his interests in flying and music, could
not fathom why he cared so little for the family business. Donald, witness to
his fathers deepening disappointment, fashioned himself Fred Jr.s opposite
the brash tough guy with a killer instinct. His reward was to inherit his
fathers dynastic dreams.
But had no issues being bailed out by his dad:
As the 1980s ended, Donald Trumps big bets began to go bust. Trump Shuttle was
failing to make loan payments within 15 months. The Plaza, drowning in debt, was
bankrupt in four years. His Atlantic City casinos, also drowning in debt,
tumbled one by one into bankruptcy.
What didnt fail was the Trump safety net. Just as Donald Trumps finances were
crumbling, family partnerships and companies dramatically increased
distributions to him and his siblings. Between 1989 and 1992, tax records show,
four entities created by Fred Trump to support his children paid Donald Trump
todays equivalent of $8.3 million.
Fred Trumps generosity also provided a crucial backstop when his son pleaded
with bankers in 1990 for an emergency line of credit. With so many of his
projects losing money, Donald Trump had few viable assets of his own making to
pledge as collateral. What has never been publicly known is that he used his
stakes in the mini-empire and the high-rise for the elderly in East Orange as
collateral to help secure a $65 million loan.
Like father, like son:
They were both fluent in the language of half-truths and lies, interviews and
records show. They both delighted in transgressing without getting caught. They
were both wizards at manipulating the value of their assets, making them appear
worth a lot or a little depending on their needs.
But wait theres more!