President Donald Trump paid $36.6 million in federal income tax on more than $150 million in income in 2005, according to leaked documents obtained Tuesday night by Pulitzer prize-winning investigative journalist David Cay Johnston.
"The 1040 shows how Trump obtained money—salary, business profits, dividends, and the like," Johnston wrote at the DC Report after the White House confirmed the documents' authenticity. "But there is still far more that it doesn't say."
Indeed, the release, which comprised just two pages of returns, in some ways raised as many questions as it answered:
1. Where did his income actually come from?
As Johnston reported Tuesday night, the 1040 form shows that Trump made money through "salary, business profits, dividends, and the like," but does not name the sources of his income—"whether rich golfers playing on his various courses or Russian oligarchs visiting his various hotels," Johnston wrote at DC Report. "Nor does the 1040 distinguish between Trump's business and personal expenses—money spent traveling in his personal jet between homes and offices in New York and Florida or between hotels and golf courses around the world."
What he did get out of, Johnston noted, was "repaying nearly $1 billion he borrowed for his failed casino business" by making use of a tax shelter that Congress shut down soon after. "Ten years later, on his 2005 return, Trump was still saving tax dollars thanks to that tax shelter."
2. What's this AMT all about?
Trump has called for the elimination of the Alternative Minimum Tax (AMT), the mechanism through which he paid the bulk of his 2005 taxes—about $31 million. The AMT is a federal rule that requires individuals pay the higher of two taxes—either their standard income tax or their AMT, which is imposed at a much higher threshold. The rule was implemented to keep a lid on tax-dodging by the wealthy. During his 2016 campaign, Trump vowed to abolish the mechanism, claiming it put a burden on middle-class families.
"But for AMT, which Trump wants to scrap, he'd have paid a lower tax rate than the poorest ½ of Americans—under 3.5 [percent] on $152.7 million," Johnston tweeted.
3. Who leaked Trump's tax returns?
The answer is thus far unclear, but many—including Johnston—speculated that it could be someone acting on the president's behalf, or the president himself.
"It's entirely possible that Donald sent this to me," Johnston told MSNBC's Rachel Maddow.
"It's a possibility, and it could have been leaked by someone in his direction."
On CNN Wednesday, Johnston also noted that Trump has "a long history of leaking things about himself." However, he continued, the White House "behaved pretty unethically" in its response, which included refusing to comment on Johnston's story and instead disseminating the documents to friendly, conservative outlets—which ultimately hints that Trump wasn't behind the disclosure, he said.
Still, many saw the leak's favorable reflection on Trump as too coincidental to be discounted.
As New York Times labor reporter Noam Scheiber wrote on Twitter on Wednesday, the returns showed "basically nothing incriminating." He continued, "If this was someone trying to bust Trump, why wouldn't they leak more than summary page? If this is all they had, why leak it at all?"
Many noted that the forms were marked "Client Copy," indicating that the documents came from someone close to Trump, rather than the IRS, as the Washington Post pointed out.
4. Was it okay to expose these documents?
The White House said in a statement that it was "totally illegal to steal and publish" Trump's tax returns. But as Johnston and Maddow clarified, they didn't seek out the documents, and Maddow said the First Amendment gives them the right to put them on air.
5. Where are the rest of the tax returns?
Theories aside, many observers—particularly those in the conservative media, which pounced on Maddow's reporting as a "fake news bonanza," per the rightwing blog Breitbart—said the returns reflected positively on Trump, showing that he paid an effective tax rate of 25 percent.
But that outcome only bolstered the argument that the president's team leaked the documents on purpose, and fueled a separate call to release all the pages in his returns, not just the two-page summary.
As Rep. Jerry Nadler (D-N.Y.) tweeted, "If [Trump] has nothing to hide, why not release complete #TrumpTaxReturns? Not enough to just show 2 pages."
And Slate's Adam Chodorow wrote on Wednesday, "Tax Day is fast upon us. In a normal world, our president would release his tax returns for all to see. This ritual both reinforces the idea that we are all subject to the law and allows the American people to know that their president is not a crook. It also lets us know where the president's financial interests lie so that we can be sure he has our interests at heart when he sets policy."
"Perhaps Trump will surprise us all by releasing his taxes in the next few weeks," he continued. "I'm not counting on it. While we cannot force him to behave as his predecessors have, we can at the very least refuse to let his nondisclosure pass unremarked upon. This still isn't normal. And no one, whether Democrat or Republican, should let it become so."