 Donald Trump's struggles in the New Jersey casino business predated his reported $916 million loss claimed on his 1995 tax returns. (Jewel Samad/AFP/Getty Images) By Jim Tankersley Both candidates for president have promised to scale back the federal tax code's vast number of "loopholes." On his website, Donald Trump promises to "eliminate special interest loopholes, make our business tax rate more competitive to keep jobs in America, create new opportunities and revitalize our economy." On her site, Hillary Clinton promises to "close loopholes that create a private tax system for the most fortunate, and ... close corporate and Wall Street tax loopholes and invest in America." The New York Times's disclosure of 1995 tax information showing that Donald Trump booked $916 million in losses that year — and potentially carried them over to avoid paying income taxes for many years following — threw the candidates' tax proposals into stark relief, as well as their often different concepts of what a "loophole" entails. For starters, it doesn't appear that Clinton or Trump's plan would affect the tax provision that, the Times reported, the real estate magnate could have employed to avoid paying federal income taxes for as much as 18 years, tax experts said. That provision states that a business that loses money in one year can apply those losses toward income gained in two previous and 15 future years. But more broadly, both candidates would change the tax code in important ways. Trump would cut taxes on the wealthy and offer tax breaks to working parents so they can pay less to the government. Clinton would look to significantly raise taxes on millionaires — and make sure their heirs pay more, too. "Both candidates would introduce new complexities," said Leonard Burman, who directs the independent Tax Policy Center. "In a lot of cases, complexity gives smart tax lawyers opportunities to manipulate the rules in the way policymakers never intended." Read the rest on Wonkblog. | 
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