Journalists Panned Her Report On Trump’s Tax Returns, But It Produced The Best Evidence Trump’s Tax Proposal Boosts His Own Bottom Line
Blog ››› ››› MATT GERTZ
Under pressure to show some sign -- any sign -- that President Donald Trump’s administration hasn’t squandered its first 100 days in office, the White House yesterday released a one-page collection of bullet points billed as a tax plan.
There are many unanswered questions relevant to the 200-word proposal -- among them whether the massive tax cuts it proposes, channeled mostly to corporations and the wealthy, would be temporary or permanent; whether the tax cuts would be paid for, and how; and how much the proposal would cost. Top administration officials making the rounds on the morning news shows say they don’t know how the plan would affect the budget deficit and can’t guarantee that it wouldn’t raise the taxes of the middle class.
One thing seems clear, however: If this proposal becomes law, the Trump family will be the big winners.
As The New York Times’ Neil Irwin noted after detailing the proposal:
It is striking how many of the categories listed above affect the president and his family. He is a high-income earner. He receives income from 564 business entities, according to his financial disclosure form, and could take advantage of the low rate on ''pass-through'' companies. According to his leaked 2005 tax return, he paid an extra $31 million because of the alternative minimum tax that he seeks to eliminate. And his heirs could eventually enjoy his enormous assets tax-free.
We don’t know precisely how much Trump will benefit from the policies he supports because he refuses to release his tax returns, breaking decades of precedent and taking a hammer to an important political norm that curbs political corruption. And so as Irwin demonstrates, Trump’s “leaked 2005 tax return” provides the best available evidence of the impact Trump’s proposal will have on his own wallet.
For that, we have MSNBC’s Rachel Maddow and The Daily Beast’s David Cay Johnston to thank. It is a vindication for Maddow in particular, who was widely criticized by political reporters for the way in which she revealed documents that none of them had been able to obtain.
Six weeks ago, Maddow set the political world on fire with a single tweet issued fewer than 90 minutes before her show began:
After journalists and political commentators spent nearly an hour burning up Twitter with theories about what precisely Maddow had uncovered, she revealed that her show was going to feature the president’s 1040 form from 2005, which Johnston had obtained.
When her show began, Maddow did not open with the contents of the document. Instead, she used her first segment to provide context, detailing the long saga of Trump’s unwillingness to reveal his tax returns and the evidence about his income that had been made public thus far. Only after returning from a commercial did she and Johnston reveal what they had learned: Trump had paid a mere $5.3 million in income taxes -- a rate of less than 4 percent on an income of more than $150 million -- but had to pay $31 million more under the alternative minimum tax, which he had proposed eliminating during the campaign.
And the political press went wild. Not because they had learned new information about the president’s taxes that he had kept from the public in unprecedented fashion. Not because the tantalizing scraps that Maddow and Johnston had unveiled suggest that Trump’s interest in keeping his returns secret is at least in part because they reveal how much he would benefit from policies he supports.
No, the press freaked out because reporters had to wait for 20 minutes on a weeknight and watch a cable news program to hear a scoop none of them had been able to get over the previous 20 months, and because the actual content of that scoop didn’t match whatever they were expecting.
In real time, political media Twitter exploded with criticism for the MSNBC host. Afterward, the critique from journalists seemed to overwhelm the actual news the show had produced.
Maddow had used “a windup that some fellow journalists, eager for any bombshells, found exceedingly lengthy,” according to the Times. She had “disappoint[ed] many in the political-media establishment with a report that was widely characterized as overhyped,” CNN reported. Her program was a “cynical, self-defeating spectacle.” She “bur[ied] the lede,” having “talked . . . and talked . . . and talked” for what “felt like an eternity.” She had made a “big-time blunder” and her “bombshell” had “fizzled.”
Poynter.org chief media writer James Warren was one of Maddow’s few defenders on style, excoriating the press for its “mix of impatience and internet-fueled craving for instant gratification” in the face of a garden-variety effort by a media outlet to ensure the largest possible audience for its scoop. As to the revelation’s content, as The Washington Post’s Erik Wemple noted, “The president wants to abolish the part of the tax code that stings him the hardest. In what news world is that not a bombshell?”
With the White House’s release of a tax proposal that eliminates that part of the tax code, Maddow’s bombshell is more important than ever. But don’t expect to see apologies any time soon -- even news reports that detail how the 2005 1040 shows how Trump would benefit from the proposal don’t give Maddow any credit for unveiling it.
This post has been updated for clarity.
Images by Sarah Wasko.