Millionaire Warren Doesn’t Pay Her Fair Share by Using Another Tax Loophole
What She Pays in Property Taxes Doesn’t Match Tax Return
Needham, MA … Tonight, Representative Geoff Diehl, candidate for U.S. Senate, released documents showing that Senator Elizabeth Warren is using a $338,000 loophole to lower her tax burden.
Warren has repeatedly said that millionaires and billionaires need to pay their fair share. She has talked about how the tax system is rigged for the rich. And, she has called people freeloaders for not paying enough in taxes.
While Warren complains about loopholes, it turns out she is using a $338,000 property tax loophole to avoid paying her fair share. The city of Cambridge allows residents, who live in their homes, to deduct $338,000 off the value of their homes. So instead of paying property taxes on her home valued at $2,592,500, she is only paying taxes on $2,253,517. Over the past 10 years, Warren has used the loophole for a residential exemption amounting to $2,383,854 and thus avoided paying $18,426.22.
|Year||Home Value||Tax Rate||Taxes Without Exemption||Residential Exemption||Taxes with exemption||Difference|
In her infamous video –“you did not build that”—she talks about how businesses were able to
succeed because taxes are paid for roads, education, fire and police. However, Warren has avoided paying her full amount in taxes. Cambridge, which is one of 20 communities that has a residential exemption, has a low property tax rate before the loophole is applied. To make up for the lost revenue, Cambridge receives the 9th highest in local aid from the state. Hence, while millionaires like Warren get a reduced property tax bill, the rest of the state is sending aid to make up for what Warren is not paying.
Warren claimed these property taxes to reduce how much she paid in taxes. According to documents from Cambridge City Hall, Warren paid:
|Year||Paid in Property Taxes||Property Taxes According Warren’s Tax Returns|
The amount Warren claims on her tax returns doesn’t match the amount she actually paid to Cambridge.
This means Senator Warren either:
1.) Filed false tax returns with the IRS for multiple years: Warren increased the claim amount from what she actually paid, falsely reducing her tax burden
2.) Owns a secret property which she failed to disclose on Senate Ethics Forms, going against disclosure rules: If she has a loan on the piece of property, it should be reported.
3.) Used another loophole to hide this secret property, undermining disclosure rules: According to disclosure rules issued in March 2018: “personal property not held for investment or the production of income need not be reported.” This is intended for Senators not to disclose their primary residence. If Senator Warren bought a second property which would increase in value, this may violate the loophole.
Warren needs to explain why these numbers don’t match up.