$600 million. Let that number sink in. That’s less than what Donald Trump just announced in net-negative income for 2024 – just for that year. The figure is truly mind-boggling. It’s even more astounding when you start to unpack the labyrinth of his vast financial empire, which encompasses real estate, golf courses, various licensing deals, and of course— NFTs. Whether you find it impressive or appalling, the sheer scale of his wealth is astounding. Though concerning in its own right, it’s not how he opaquely procured that should truly raise your hackles. How does one person accumulate and control so much wealth in our highly integrated, globalized economy today? The answer, not surprisingly, can be found in regulatory loopholes wide enough to drive a gold-plated Russian oligarch’s truck through.
International Licensing: A Tax Haven?
One of the most flagrant instances is that Trump derived over $36 million in revenue from foreign licensing agreements. Think about it: Dubai, India, Vietnam. These aren’t precisely renowned for their tough fiscal guardrails. Though entirely legal, these transactions do raise a number of troubling transparency and tax avoidance implications.
Are existing laws and regulations really prepared to efficiently monitor and collect taxes on income earned—often just on paper—in these jurisdictions? Probably not. International laws and accounting standards further complicate the web. This unusual situation—created and perpetuated with great political creativity by the state—enables some creative—and at times ethically ambiguous—financial sleight-of-hand. It’s a worldwide game of regulation whack-a-mole, and the regulators are never ahead of the curve.
Imagine a small business owner struggling to make ends meet, diligently paying their taxes, while someone like Trump leverages international loopholes to minimize their tax burden. Does that sound fair? Does that sound like a balanced system that works for the good of all, or just the one percent?
NFTs and The Wild West of Finance
Then there's the NFT craze. After all, Trump raked in over $1.16 million hawking his own digital trading cards. Melania chipped in with her own collection. True, the sums are small relative to his total income. The prospect of NFT regulatory frameworks being as grim as they sound is concerning. When it comes to private equity, it’s the Wild West of finance, with little-to-no rules or oversight.
This isn't just about Trump. The concern is the larger implications that come when the proliferation of unregulated digital assets goes unchecked. NFTs, cryptocurrencies, and other decentralized technologies move at the speed of light, creating unprecedented challenges for regulators. Would we be sleepwalking into a future where financial crime and tax evasion is made even easier by our technology solutions?
Imagine the possibilities for money laundering, market manipulation, and other nefarious deeds. Without smart federal regulation, NFTs have the potential to be a criminal’s and tax dodger’s paradise. It’s a real ticking time bomb, and we need to get ahead on this and defuse it before it blows up.
Unseen Conflicts of Interest Loom Large
Beyond the specifics of the income streams listed, Trump’s financial disclosure should alarm anyone who cares about conflicts of interest. A former president with extensive business interests around the world, as well as history with the emoluments clause, is another matter. How do we ensure that his personal financial interests do not skew the political decisions he makes?
This isn't about accusing anyone of wrongdoing. It's about the perception of impropriety. When someone has so much wealth and so many business interests, it's difficult to avoid the appearance of conflicts of interest. In a democracy, perception matters.
Take his real estate and golf businesses, which brought in $378 million of income. And these industries have been told that they are incredibly vulnerable and dependent on government policies and regulations. And we have to hold people accountable for asking whether those policies are really in the public interest. Let’s ask whether they are instead rigged to maximize Trump’s profits.
We need more transparency. We need stricter regulations. We simply need to do a better job of ensuring that the wealthy and powerful are held accountable, no different from others. His $600 million haul underscored the abundant regulatory gaps. These loopholes allow the rich to continue to get richer, while the rest of us can barely tread water. Let’s begin by passing legislation that closes those loopholes! Here’s to creating an equitable financial system that serves all, not just the chosen few. And if we don't? If so, get ready for much worse undermining of wealth concentration and deepening distrust of our institutions. Because doing nothing is still a choice—and it’s a choice that serves the elite at the expense of everyone else. The more we delay it, the more difficult it will be to repair it.
