US Presidential Debate: Donald Trump proudly admits tax avoidance

Republican presidential nominee Donald Trump admitted taking advantage of loopholes in the taxation law to avoid paying federal income taxes for several years.

During Trump’s second presidential debate against Hillary Clinton Sunday, the real estate mogul confirmed that he declared a US$916 million (AU$1.2 billion) loss in 1995, which offset his federal income tax liabilities by way of tax deductions.

“Of course, I do. Of course, I do,” Trump said in response to Anderson Cooper when the debate moderator asked if he had used the loss to erase his tax liabilities.

“I absolutely used it. And so do all of her donors,” he later fired back, referring to Clinton’s business supporters.

Trump has long promised to release his tax returns for public scrutiny until the New York Times reported on his 1995 tax records, wherein he a massive loss that could have allowed him to legally paying federal income taxes for up to 18 years.

The 70-year-old businessman did not offer details how long he was able to avoid paying federal income taxes, but he claimed that, “I understand the tax code better than anybody that’s ever run for president.”

Donald Trump net worth

According to Forbes magazine, Trump’s fortune dropped to US$3.7 billion (AU$4.8 billion), which is US$800 million (AU$1 billion) lower than his net worth between June 2014 to June 2015. (Read: Donald Trump net worth drops to $4.8 B - Forbes)

Before the leak of Trump’s tax records, a war veteran launched an online campaign to compel him to be transparent with his taxes before the Nov. 8 election day. (Read: LinkedIn exec offers to donate as much as $6.5 M if Trump shows tax returns)

Trump and Hillary will face each other for the third and last US presidential debate on Oct. 19 at the University of Nevada in Las Vegas. (Read: Hillary Clinton, Donald Trump face off to lure voters; 7 highlights you need to know about the first presidential debate)