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THE DAILY ASTORIAN • WEDNESDAY, OCTOBER 3, 2018
Report: Trump got $413M from
dad, much of it from tax dodges
Associated Press
NEW YORK — The New
York Times reported Tuesday
that President Donald Trump
received at least $413 mil-
lion from his father over the
decades, much of that through
dubious tax dodges, including
outright fraud.
The 15,000-word Times
report contradicts Trump’s por-
trayal of himself as a self-made
billionaire who started with
just a $1 million loan from his
father.
The Times says Trump and
his father, Fred, avoided gift
and inheritance taxes by set-
ting up a sham corporation
and undervaluing assets to tax
authorities. The newspaper
says its report is based on more
than 100,000 pages of finan-
cial documents, including con-
fidential tax returns from the
father and his companies.
A lawyer for Trump, Charles
J. Harder, told the Times that
there was no “fraud or tax eva-
sion” and that the facts cited
in the report are “extremely
inaccurate.”
The White House dismissed
the report as a “misleading
attack against the Trump fam-
ily by the failing New York
Times.” It criticized the news-
paper and other media out-
lets, saying their low credibil-
ity with the public is “because
they are consumed with attack-
ing the president and his fam-
ily 24/7 instead of reporting the
news.”
Trump expressed outrage
today, accusing the newspa-
per of “doing a very old, boring
and often told hit piece on me.”
The New York state tax
department said it is review-
ing the allegations in the Times
and “is vigorously pursuing all
appropriate avenues of investi-
gation.” The department typi-
cally refers findings to the state
attorney general’s office.
The Trump family hid mil-
lions of dollars of transfers
from the father to his chil-
dren through a sham company
owned by the children called
All County Building Supply &
Maintenance, the Times said.
Set up in 1992 ostensibly as
a purchasing agent to supply
Fred Trump’s buildings with
boilers, cleaning supplies and
other goods, the father would
pad invoices with markups of
20 percent or even 50 percent,
thereby avoiding gift taxes.
Before Fred Trump died in
the late 1990s, he transferred
ownership of most of his real
estate empire to his four liv-
ing children, the Times said.
The value of the properties in
tax returns summed up to $41.4
million, vastly less than the
Times says they were worth.
The same properties would
be sold off over the next decade
for more than 16 times that
amount.
In total, the president’s
father and mother transferred
over $1 billion to their chil-
dren, according to the Times
tally. That should have pro-
duced a tax bill of at least $550
million, based on a 55 percent
tax on gifts and inheritance at
the time.
Instead, the children paid
$52.2 million, or about 5
percent.
Tax experts cited in the
report say that Trump is
unlikely to face criminal pros-
ecution in helping his parents
evade taxes because the maneu-
vers occurred long ago and are
past the statute of limitation.
The president’s brother,
Robert Trump, said that “all
appropriate gift and estate tax
returns” were filed. “Our fam-
AP Photo/Pablo Martinez Monsivais
A portrait of President Donald Trump’s father, Fred Trump,
and three unsigned executive orders in the Oval Office.
ily has no other comment on
these matters that happened
some 20 years ago,” he said in
a statement to the Times, “and
would appreciate your respect-
ing the privacy of our deceased
parents, may God rest their
souls.”
The Times report says docu-
ments it reviewed show that the
future president was earning
$200,000 a year in today’s dol-
lars at the age of 3. By the time
Trump had graduated from col-
lege, he was getting the equiv-
alent of $1 million a year from
his father.
When he was campaigning,
Trump repeatedly boasted of
his ability to turn a small loan
from his father into his fortune.
“My father gave me a very
small loan in 1975,” he said,
“and I built it into a company
that’s worth many, many bil-
lions of dollars.”
WORLD IN BRIEF
Associated Press
Pivotal GOP senators
hit Trump for mocking
Kavanaugh accuser
WASHINGTON — Three wavering Republi-
can senators lambasted President Donald Trump
today for mocking a woman who has claimed
Brett Kavanaugh sexually assaulted her in the
1980s, underscoring the risks of assailing Kava-
naugh’s accusers as Senate support teeters for the
Supreme Court nominee.
The blowback to Trump’s scoffing at Chris-
tine Blasey Ford came as lawmakers awaited
results of a revived FBI background check,
expected imminently, on accusations of sexual
misconduct by Kavanaugh in high school and
college. Senate Majority Leader Mitch McCo-
nnell, R-Ky., has said the chamber will vote on
Kavanaugh later this week, and the conservative
jurist’s fate is in the hands of a handful of unde-
cided GOP and Democratic senators.
At a political rally in Mississippi Tuesday
night, Trump mimicked Ford’s responses at a
Senate Judiciary Committee hearing last week
at which she recounted Kavanaugh’s alleged
attack on her when both were in high school.
The audience laughed as Trump, at times inac-
curately, recounted what he described as holes in
her testimony.
“I had one beer — that’s the only thing I
remember,” Trump said.
On NBC’s “Today” show today, Sen. Jeff
Flake, R-Ariz., said that ridiculing “something
this sensitive at a political rally is just not right.”
Flake added, “I wish he hadn’t done it. It’s kind
of appalling.”
Separately, Sen. Susan Collins, R-Maine,
told reporters, “The president’s comments were
just plain wrong,” and Sen. Lisa Murkowski,
R-Alaska, said they were “wholly inappropriate
and in my view unacceptable.”
Republican Sen. Chuck Grassley, the chair-
man of the Senate Judiciary Committee, said in
a tweet that people can “decide who to believe”
but everyone should stop the “personal attacks”
against Ford, Kavanaugh and their families.
Officials warn Arizona
dam could fail, more
floods possible
PHOENIX — An earthen dam in Arizona’s
southern desert could fail because the lake behind
it is swollen with storm runoff, and more flood-
ing caused by rain from the remnants of Tropi-
cal Storm Rosa is possible elsewhere in the state,
officials said today.
Residents who live near the dam in the small
Native American community of Ali Chuk on the
Tohono O’odham Nation reservation near the
U.S.-Mexico border were being evacuated Tues-
day night.
Water levels were within 1 foot of overtop-
ping Menagers Dam, which could give way and
flood Ali Chuk, the National Weather Service
said.
There were no reports of additional rain in
the area today. Flooding from runoff on Tuesday
made roads impassable in the area.
Officials evacuated more than 30 people from
a village elsewhere on the reservation because of
flooding. Forecasters also warned of the possibil-
ity of more flooding in the Phoenix area and else-
where in Arizona on Wednesday.
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6 PM
3 win chemistry Nobel;
Findings led to best-
selling drug
STOCKHOLM — Three researchers who
“harnessed the power of evolution” to pro-
duce enzymes and antibodies that have led to
a best-selling drug and biofuels won the Nobel
Prize in chemistry today.
Frances Arnold of the California Institute of
Technology was awarded half of the $1.01 mil-
lion prize, while the other half was shared by
George Smith of the University of Missouri and
Gregory Winter of the MRC molecular biology
lab in Cambridge, England.
The Royal Swedish Academy of Sciences,
which chose the winners, said Arnold, 62, con-
ducted the first directed evolution of enzymes,
whose uses include “more environmentally
friendly manufacturing of chemical substances
such as pharmaceuticals and the production of
renewable fuels.”
Arnold was only the fifth woman to win a
chemistry Nobel since the prizes began in 1901.
Smith, 77, developed a method to evolve
new proteins and Winter, 67, used the method
to evolve antibodies, which are disease-fighting
proteins in the blood.
The first pharmaceutical based on Win-
ter’s work was approved for use in 2002 and is
employed to treat rheumatoid arthritis, psoriasis
and inflammatory bowel diseases, the academy
said. The chemical name of the drug is adalim-
umab, which has several trade names including
Humira, one of the top-selling drugs in the world.
Watchdog: US
unprepared for ‘zero
tolerance’ immigration
WASHINGTON — Immigration officials
were not prepared this summer to manage the
consequences of a “zero tolerance” policy at the
Southwest border, which resulted in the separa-
tion of nearly 3,000 children from their parents,
Homeland Security’s watchdog said in a report
made public on Tuesday.
The resulting confusion along the border led
to misinformation among separated parents who
did not know why they had been taken from their
children or how to reach them, longer detention
for children at border facilities meant for short-
term stays, and difficulty in identifying and
reuniting families. And backlogs at ports of entry
may have pushed some into illegally crossing the
U.S-Mexico border, the report found.
While the Trump administration had been
widely criticized for the policy, the criticism
previously came mostly from political oppo-
nents and not from independent, nonpolitical
investigators.
Investigators with Homeland Security’s
Office of the Inspector General compiled the
report after speaking with about 50 immigration
employees, plus 17 detainees and parents who
had been separated from their children and later
released. They also reviewed documents and
data. Homeland Security is the umbrella depart-
ment for U.S. Customs and Border Protection
and Immigration and Customs Enforcement.
SCHEDULE
THE DAILY
ASTORIAN
A
A flash flood watch issued for much of
south-central Arizona was extended through this
afternoon.
The storm remnants dropped a record amount
of rain on Phoenix on Tuesday.
Evening listings
WEDNESDAY
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