Yesterday Mitt Romney said some interesting things about Donald Trump and his tax returns, and they got picked up by a lot of news outlets and pundits. This is the way his remarks were generally reported:
There might be a “bombshell” revelation to be discovered in Republican presidential frontrunner Donald Trump’s tax returns, 2012 party nominee Mitt Romney said Wednesday.
He also called on the entire GOP field to release their tax returns.
“I think there’s something there,” Romney said of Trump’s returns, “Either he’s not anywhere near as wealthy as he says he is, or he hasn’t been paying the kind of taxes we would expect him to pay,” Romney, a former Massachusetts governor, told Fox News’ Neil Cavuto on “Your World.”
Trump supporters felt that this was a low blow, and unsubstantiated as well. Also, coming from Romney—the guy many judge as having been insufficiently hard on Obama in 2012—it seemed uncharacteristic.
As usual, though, it’s always instructive to look at the transcript, and then to do a little digging into the background. In the full transcript Romney went into more detail than that. He went on to say:
…[P]erhaps [Trump] hasn’t been giving money to the vets or to the disabled like he’s been telling us he’s been doing…The reasons that I think there’s a bombshell in there is because every time he’s asked about his taxes he dodges and delays and says, well, we’re working on it. Hey, we’re not talking about the taxes that are coming due this year…We’re talking about taxes already filed, back taxes, my back taxes when I ran in 2012, my back taxes I put out in January of 2012.
Then Romney called for the other candidates to do so as well, something he had said at the beginning of the interview, too, before he made the “bombshell” statement about Trump.
Romney added:
Donald Trump likes to tell you how wealthy he is, how he’s worth billions of dollars. The first time he was asked about his taxes on the “Today” show he said, you know, they’re beautiful. They’re big and they’re, well, great, let us see them.
Romney made it clear he has no hard evidence about Trump, but is suspicious because of Trump’s dragging his feet. Many other people who are discussing this assume there was no evidence for Romney’s claim, either. But—whether Romney has seen it or not (and I have no idea whether he has or hasn’t)—there actually is some evidence from the past, originating in a defamation lawsuit Trump filed in 2009.
Please take a look at this NR article by Ian Tuttle entitled “The Litigious—and Bullying—Donald Trump.” The following Trump exchange took place during a suit Trump lodged against Tim O’Brien, the author of a biography that claimed Trump’s worth was far far less than Trump claims:
In 2004, O’Brien had co-authored a piece for the Times detailing Trump’s financial woes ”” he had recently filed for the third of what would be four Chapter 11 bankruptcies ”” and quoted anonymous sources who reported that Trump’s wealth was not nearly what he claimed; in fact, it was in the hundreds of millions, they said…Trump, meanwhile, notoriously unreliable in his own estimates, offered figures ranging from $1.7 billion to $9.5 billion. In [his biography] TrumpNation, O’Brien cited those numbers, alongside “three people with direct knowledge of Donald’s finances” who estimated his wealth was “somewhere between $150 million and $250 million.” Trump denied it, in his usual colorful fashion: “You can go ahead and speak to guys who have four-hundred-pound wives at home who are jealous of me, but the guys who really know me know I’m a great builder.”
Trump filed a lawsuit asking for $5 billion damages. It’s really worth reading the whole Tuttle article, but here are some excerpts [emphasis mine]:
Those who think Trump is a “winner” ought to take a close look at Donald Trump v. Timothy L. O’Brien. Because Trump didn’t just lose the case. He was humiliated…
“The case dragged on for as long as it did because he wouldn’t comply with discovery requests,” says O’Brien. “He wouldn’t turn over the tax returns, then the tax returns came in almost so completely redacted as to be useless.”…
And, of course, Trump himself was deposed, leading to the following exchange, a crystallization of the Trump ethos:
Q: Now, Mr. Trump, have you always been completely truthful in your public statements about your net worth of properties?
A: I try.
Q: Have you ever not been truthful?
A: My net worth fluctuates, and it goes up and down with markets and with attitudes and with feelings, even my own feelings, but I try.
Q: Let me just understand that a little bit. Let’s talk about net worth for a second. You said that the net worth goes up and down based upon your own feelings?
A: Yes, even my own feelings, as to where the world is, where the world is going, and that can change rapidly from day to day. Then you have a September 11th, and you don’t feel so good about yourself and you don’t feel so good about the world and you don’t feel so good about New York City. Then you have a year later, and the city is as hot as a pistol. Even months after that it was a different feeling. So yeah, even my own feelings affect my value to myself.
Q: When you publicly state what you’re worth, what do you base that number on?
A: I would say it’s my general attitude at the time that the question may be asked. And as I say, it varies.
That doesn’t mean it’s easy to estimate the worth of an individual like Trump, whose single main asset appears to be his “brand”—in his case the name “Trump”:
Donald Trump’s net worth is $2.9 billion ”” far less than the $10 billion the real estate mogul and GOP presidential hopeful claims he’s worth, according to a new Bloomberg analysis.
Trump, who has made his personal wealth part of his pitch to voters, released a 92-page rundown of his net worth last week. He calculated his fortune at $8.7 billion, including $3.3 billion for the value of his name, in the federal disclosure form.
Bloomberg tallied up Trump’s real estate holdings, including his share of several skyscrapers, golf courses and resorts, based on the current income generated by those properties, which is its standard approach for valuing such assets.
Bloomberg estimated Trump’s golf and resort properties at a combined $570 million, while Trump pegged the properties’ value at $2 billion “without disclosing his methodology.”
So I cannot help but wonder how much of the Trump story is self-constructed myth and how much truth. When it was just Trump the celebrity out there in the world, I really didn’t care at all. But if he’s asking to be president, and it’s based at least in part on his record in business (not to mention his veracity), I think we all need to care.
I have said that I have no idea whether Romney was aware of the Trump lawsuit against Tim O’Brien when Romney made his statement, which was couched within a blanket request by Romney for all the candidates to release their tax forms. Nor do I know if Romney has seen articles such as this one, which discusses Trump’s philanthropic activities in some detail, and finds his donations wanting for a man of his wealth (see also this).
[NOTE: Here’s O’Brien’s side of the story.]
[NOTE II: By the way, I had done a significant amount of the research for this post before Romney made his statement. It was in connection with a post I was planning about the extent of Trump’s wealth. This information has been in the public domain for quite some time and is actually rather easy to find.]