Letters to the Editor

Taxes: Trump's business loss not scandalous

The big scream about Donald Trump carrying forward a business loss to defray future taxes shows lack of understanding of how jobs and businesses are created.

Most startup businesses lose money their first years of operation. A startup depends on the ability to carry losses forward to profitable years to help retain business capital to pay off the cost of starting the company.

A loss for a mature company can be carried back to get refunds for past taxes so they can continue to meet payroll/debt obligations and continue to operate.

Several major examples come to mind to demonstrate this: the startup of the cell phone industry and Amazon, plus Boeing’s past business fluctuations. All were able to start up and/or continue to operate when large losses occurred.

When the Big Three auto makers lost hundreds of millions of dollars in the 70s and again in the 90s, their ability to carry back operating losses and receive tax refunds helped save these corporations and many union jobs.

A healthy corporation/business pays and keeps employees. The loss carry back/forward part of the IRS code helps keep them healthy and recover from down times.