Eluding the taxman: Trump received $885M in breaks, subsidies on his NYC real estate portfolio
From the New York website: As a real estate developer, Republican presidential nominee Donald Trump has received at least $885 million in tax breaks and other subsidies for his New York buildings.
An investigation by the New York Times shows that Trump has taken in millions in tax breaks, grants and other subsidies — in part — through political maneuvering and lawsuits. For his Trump Tower and Trump Palace projects he took in 421a tax benefits worth $20.8 million. After the Sept. 11 terrorist attacks, Trump received $150,000 in grants made available to small businesses in the area, even though he said his building at 40 Wall Street near the World Trade Center wasn’t damaged.
Partially through his father’s political connections to Mayor Abraham Beame and Gov. Hugh Carey, Trump secured a 40-year tax abatement for the Grand Hyatt Hotel on 42nd Street, which has allowed him to forego $359.3 million in taxes. He sued the city in 1981 after Mayor Ed Koch’s administration denied 421a benefits for Trump Tower. After a ruling in his favor by the New York State Court of Appeals, Trump received $22.5 million worth of tax breaks on the building.
According to the New York Times, the city missed out on $332 million in taxes from Trump Place on Riverside Drive. It also lost out on $8 million from Trump Palace; $13 million from Trump Plaza; $120 million from Trump World Tower; and $16 million from One Central Park West.
“In many cases, they made the difference between building and not being able to build,” Trump told the Times. “I’ve gotten incentives in other parts of the world as well.” [NYT] — Kathryn Brenzel