Back HomeTrump, The Taxes, & Real Estate: What does it Mean for the 2016 Presidential Election?
Recently, there has been some interest in Donald Trump’s Real Estate Holdings which some people think may have an effect on the upcoming Presidential Election. This speculation leads to the following question: “How will this have an effect (if at all) on the Presidential Race and on New York City real estate?” Exploring this topic will hopefully encourage the American people as they head into a very important season of voting, and will expose many of the reasons why the nation (specifically New York City) benefits strongly from a tax perspective due to Mr. Trump and his organization.
Donald Trump has always been in the media and is known worldwide as an iconic developer for commercial property, residential property, and business enterprise. Like all law abiding citizens, Trump has abided by tax guidelines and has paid as much tax as required by state and federal law. Like all taxpayers, also, of course Trump has claimed losses and deductions – a legal accounting practice which many on the left are hypocritically criticizing him for. “Many critics and journalists in the United States continue to criticize Donald Trump’s past and how it has affected real estate and politics not just in New York, but all over America.” (2). This criticism however is unwarranted, as it goes without question that Trump has been instrumental in the accumulation of national wealth throughout America, both directly and consequentially.
Donald Trump has created epic volumes of tax dollars for the United States. He has been creating jobs, developing commercial buildings, managing hotels, building condominiums, and investing in businesses throughout the entirety of his career thus far. All of these enterprises create a pretty penny for Uncle Sam. Every state, specifically New York, benefits off each homeowner residing in a Trump condo due to their hefty real estate tax obligations. Additionally, every time a luxury condo in a Trump building is bought over $1,000,000, the buyer pays a mansion tax of 1% of the sale price to the government. Furthermore, whenever a homeowner sells a unit in a Trump building (or any building for that matter) the city and state then collect those transfer taxes of about 2% of the sale price. Additionally, every time a seller profits under the current democratic legislation, the capital gains tax paid by the seller is a whopping 35% of the sale price. Let’s not forget also, that every property owner who profits off their sale can reinvest their post-tax liquid capital into the stock market, real estate market, or the like, generating further taxable income, and once again stimulating the economy. Let’s also not forget the real estate brokers, who collect taxable commission income off any sale executed within a Trump building. Additionally, in every building that Trump has developed, the entire staff of the building contribute their income tax dollars to both the state and federal government along with the entire staff of the management company. And in terms of the hotels and commercial buildings, every single hotel and commercial building developed by Trump has generated tremendous income for the country, not only through the income tax of the vast number of employees hired at the venues but also through property tax alone.
It is evident that throughout the course of history, Trump has created billions of tax dollars. This could be why the affluent in the real estate industry throughout the country are voting for Trump in the 2016 Presidential Election. According to an article and a poll taken by the Inman Report, “nearly 48 percent of the 1,086 respondents said they planned to vote for Donald Trump. Meanwhile, Hillary Clinton lagged behind by 15 percentage points: Only 32 percent of respondents plan to vote for Clinton” (3). It comes as no surprise that the major players and influencers in the real estate industry – developers, property managers, brokers, landlords and investors – are in favor of the candidate who has proven successful in driving the economy upwards through successful real estate and business maneuvers. Trump supporters state that “there is no way our economy can grow unless we cut taxes and government expenses. Trump is the only one who would be able to bring businesses back to the U.S., increase our productivity, and be able to lower taxes” (3).
How does it affect the New York City real estate market? Like most industries, the news and press does have an impact on the public’s perception. When it comes to real estate and investments, this industry can be considered highly sensitive to the news and press releases. Once there is new information that will in fact have a long term impact on people’s overall wealth and net worth, it changes the way that people view leaders in that industry and make decisions from there on out. Since Donald Trump has a strong reputation and prestige within the real estate industry, there is no doubt that his reputation will continue to hold firm during the final course of this Presidential Election.
(1) New York Times
(2) NPR
(3) Inman
