The Election
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The other is for the self-employed, owners of limited- ber of the working poor—people who earn less than $20,000— liability companies, hedge-fund managers, and the very wealthy. you are nearly as likely to be audited as people whose earnings For them, the tax code is like a Christmas tree laden with shiny put them in the top 1 percent. It might seem foolish of the IRS baubles and surrounded by ribboned presents—deductions, tax- to chase after low-paid taxpayers for a few hundred bucks rather avoidance schemes, and loopholes of all kinds. In the deep forest than, say, a reality TV show host claiming a suspect business loss of a 400-page tax return, it is easy to hide questionable claims, of $72.9 million. But years of withering budget cuts by congres- like classifying your daughter—an executive in the family firm— sional Republicans have left the IRS so stripped of experienced as a “consultant” so you can write off her $747,622 salary as a staff that it can only audit 1.56 percent of the richest Americans’ business deduction. Fraud, the IRS estimates, will cost the gov- returns. Auditing the poor is simpler—they can’t afford tax ernment $7.5 trillion in taxes not paid over the next decade. lawyers—and is thus “the most efficient use of IRS’s limited ex- Every dollar that cheats do not pay, of course, is either paid by amination resources,” the agency says. the “losers and suckers” or added to the trillions in debt we are As we’ve been reminded this past week (see Main Stories), the handing off to our children. Americans deserve a much fairer U.S. does not have one income tax system, but two. One is for and simpler tax code, but we will not get one William Falk salaried schmucks whose income is reported directly to the gov- until we demand it. Editor-in-chief NEWS 4 Main stories Revelations from Editor-in-chief: William Falk President Trump’s tax returns; a chaotic fi rst Managing editors: Theunis Bates, presidential debate Mark Gimein Assistant managing editor: Jay Wilkins 6 Controversy of the week Deputy editor/International: Susan Caskie Deputy editor/Arts: Chris Mitchell The case for and against Senior editors: Chris Erikson, Danny Funt, Trump’s Supreme Court Michael Jaccarino, Dale Obbie, Zach Schonbrun, Hallie Stiller nominee, Judge Amy Art director: Dan Josephs Coney Barrett Photo editor: Mark Rykoff Copy editor: Jane A. Halsey 7 The U.S. at a glance Researchers: Joyce Chu, Alisa Partlan Brain-eating amoeba Contributing editors: Ryan Devlin, Bruno Maddox found in Texas city’s water; the NFL’s Chief sales and marketing officer: Covid-19 outbreak Adam Dub SVP, marketing: Lisa Boyars 8 The world at a glance Executive account director: Sara Schiano Barrett and Vice President Mike Pence at the U.S. Capitol (p.6) West Coast executive director: Tony Imperato An ISIS impersonator Head of brand marketing: Ian Huxley arrested in Canada; ARTS LEISURE Director of digital operations & Amnesty International advertising: Andy Price 22 Books 27 Food & Drink hounded out of India Chief executive: Kerin O’Connor The bumbling tech fi rm Getting maximum fl avor Chief operating & financial officer: 10 People that foresaw the future into water-packed tofu; Kevin E. Morgan Erno Rubik on his famous classic Oktoberfest brews Director of financial reporting: 23 Author of the week Arielle Starkman cube; Sharon Stone on Consumer marketing director: getting a second shot at life Allie Brosh’s 28 Coping Leslie Guarnieri disappearing act How the pandemic might HR manager: Joy Hart 11 Briefi ng change the American Operations manager: Cassandra Mondonedo President Trump’s agenda 24 Music family for the better for a second term Debating the 500 Chairman: Jack Griffin greatest pop albums Dennis Group CEO: James Tye 12 Best U.S. columns Joe Biden’s ethical blind 25 Art & Film BUSINESS U.K. founding editor: Jolyon Connell Should museums ever 32 News at a glance spot; should liberals give Company founder: Felix Dennis up on Roe v. Wade? sell artworks? JPMorgan’s “spoofi ng” 15 Best international settlement; supermarkets columns stockpile for a Covid surge Russia sees democracy in 33 Making money decline in the U.S. A superheated housing Visit us at TheWeek.com. 16 Talking points market; the secret world of For customer service go to www Amazon “fi xers” .TheWeek.com/service or phone us Trump’s plan to challenge at 1-877-245-8151. election results; Breonna 34 Best columns Renew a subscription at www ) 2 Taylor; alarm at the CDC Airlines beg for a new .RenewTheWeek.com or give a gift ( s r at www.GiveTheWeek.com. e over the president’s new Erno Rubik bailout; Harley Davidson’s t u e R pandemic adviser (p.10) accelerating woes THE WEEK October 9, 2020 4 NEWS The main stories... Trump’s taxes: Massive losses and looming debts What happened benefit “game-players at the In a blockbuster story on Donald expense of average taxpayers.” Trump’s long-hidden tax returns, The New York Times revealed What laws were broken? asked this week that the president is The Wall Street Journal. It’s deeply mired in debt and has hardly a scandal that Trump over the past 18 years claimed “legally exploited the tax code” massive business losses while to lower his tax bill. Congress paying next to nothing in fed- has “littered the code with eral income tax. Working from loopholes aimed at assisting extensive tax data provided by real estate businesses, among an unrevealed source, the paper others,” and Trump has made reported that Trump paid only no secret of putting them to $750 in federal income tax in use.