Did Donald Trump, who has continuously bragged about lowering his tax burden and refused to release his tax information to the public, receive a huge break in back-taxes owed to the state of New Jersey for his failing casinos? The New York Times has uncovered enough evidence to suggest that this is a very likely scenario.
New Jersey had been pursuing Trump for back-taxes plus interest in the $30, 000,000 range through two of the Trump brand’s bankruptcy cases on taxes that had gone unpaid from 2002-2006.
In 2011, after his friend Chris Christie had taken office as New Jersey’s governor, the state suddenly and mysteriously settled the debt with Trump for $5,000,000, roughly 17 cents on the dollar of the debt owed, which many bankruptcy law experts are saying is at the very least suspicious for its massive reduction in the debt.
From the Times’ Article:
The Times discovered the agreement during a review of the thousands of documents filed in the bankruptcies of Mr. Trump’s casinos. The taxes went unpaid from 2002 through 2006, during which time Mr. Trump was leading the company as chairman and, until 2005, as its chief executive. He reaped millions of dollars in fees and bonuses from the company, even as it under-preformed its competitors , lost money every year and saw its stock collapse.
The Trumps and the Christies have a long-established and documented friendship, which has including double dates and millions of dollars in donations from Trump to various Christie-related causes. It may be hard for Trump to worm his way out of this one.
Sounds like Trump got away with not paying taxes for 4 years and then had a close friend reduce the debt significantly. Looks like he still has at least one or two friends in high places left.