The New York Times reported today that the $25 million fine imposed on Donald Trump to reimburse people defrauded by “Trump University” cannot be paid by his charitable foundation.
However, a sentence buried deep in the story points out that Trump may be able to deduct all but $1 million of the fine from his business taxes.
Thanks to to the eagle-eyed Mercedes Schneider for catching this interesting detail.
Trump also said said he would have won the case if it had gone to trial but he was too busy.
Diane Ravitch's blog 
Trump was NOT fined $25 million. He was fined $1 million, which cannot be deducted from business income. The other $24 million is restitution to people who claimed they were defrauded. Because it is refunding money that otherwise would be considered as gross revenue before expenses, having to refund it is considered a legitimate business expense because it is a loss of revenue. Just trying to be accurate
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Either way, he won’t be paying a fine of $25 million. He will pay a fine of $1 million. Chump change.
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In the interest of the continuing struggle against the “post-truth world,” I would suggest that this post be corrected to reflect what teacherken points out.
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However you slice it, he will be parting with $25 million minus whatever deductions he’s entitled to. I guess that’s a flea bite for him but a lottery win for the average American.
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In related news, Stephen Moore is one of Trump’s economic “advisers.” He’s chief economist at the phony baloney so-called think tank that takes the think out of think tank…The Heritage Foundation. From The Columbia Journalism Review: “I won’t be running anything else from Stephen Moore.” So says Miriam Pepper, editorial page editor of the Kansas City Star—and not just because she’s retiring this week. Pepper’s no-Moore stance comes after her paper discovered substantial factual errors in a recent guest op-ed by Moore, the chief economist at the conservative Heritage Foundation.
The episode serves as a cautionary tale for editors navigating the disputes of rival policy advocates—and a case study in the delicate art of running a correction.
It all began a month ago, when the Star ran a piece by the Nobel Prize-winning economist-turned- liberal New York Times columnist Paul Krugman, as it does regularly. The column named Moore as one of the “charlatans and cranks” who have influenced policymakers at all levels to enact low-tax, supply-side economic policies—with ruinous effects, according to Krugman. The sweeping 2013 tax cut in Kansas is only the latest example, he wrote, citing unfavorable economic and fiscal news in the Sunflower State.”
What they did for Kansas, they will do for the USA.
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Link for the Stephen Moore kerfuffle: http://www.cjr.org/united_states_project/stephen_moore_heritage_foundation_paul_krugman_kansas_city_star.php
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Joe
I get a good laugh watching Kudlow and Moore wrapping around Trump whose populist message is not to different than Sanders .
I suspect the Reaganomics will survive long after the populism is forgotten.
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Yes, Joe. If Trump and the Republicans in Congress have their way, Kansas is our future.
And that should be disturbing to anyone with an ounce of sense and even a dose of compassion.
Anyone thinks it’s time we abandoned all the SAT and AP and STEM baloney we’re doing in public schools, and focused far more on democratic citizenship?
Anyone think our school “leaders” and educational pundits are even able to conceive, much less implement, such a change?
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democracy
Anybody who thinks that creating a million more STEM workers will create any STEM
jobs, is in for some serious disappointment.
So perhaps it is time to focus on creating the critical thinkers that are a prerequisite for maintaining a Democratic and equitable society .Which certainly does not exclude STEM.
But perhaps we ought to ask those who study the economy to present the evidence of a STEM shortage. Perhaps they could explain why if there is a shortage of STEM workers, wages are stagnant in most STEM fields. You might want to consult with Adam Smith on that matter . I suspect there are quite a few Petrochemical engineers, the hot ticket of a few years ago,,designing burgers at Burger King.
https://www.washingtonpost.com/news/on-leadership/wp/2014/09/05/what-employers-really-want-workers-they-dont-have-to-train/
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To answer your two questions:
Yes. Actually way past time.
No. I don’t call administrators adminimals for nothing.
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Uh, wut taxes?
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according to george takei, trump is still way ahead financially, no matter how you slice this deal….he did the math, and defrauding people was a great business move by the donald…..
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If its a legal deduction why not deduct it? If the education is a problem complain to IRS – the anti-TeaParty arm of Obama’s administration.
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Please explain, jscheidell, how complaining to the IRS will help take care of the “education problem” (whatever that is, please explain that also). I’m confused about what you are trying to say. Help me out. TIA, Duane
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Instead of “education” I intended it to be “deduction” Fingers and brain not in sync – sorry
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