via Marco Modano

via Marco Modano 

Originally shared by Karl Auerbach

It's pretty interesting watching Drumpf - he is essentially replicating the Credit Mobilier scam (used to drain money out of the Federal gov't during the construction of the trans-continental railroad in the 1860's.)

What Drumpf is doing is this:

Drumpf owns a corporation that owns his airplane(s). Let's say that the cost per hour is $7000. Drumpf gets his campaign to rent that airplane for $12,000/hour. That's $5000/hour of profit for the airplane company, which Drumpf owns.

Now that money that the campaign spends to rent that airplane: where does it come from? Two places: 1) Loans from Drumpf - yes loans. 2) Donations. Those donations are not loans.

At the end of the campaign Drumpf asks to be repaid. In some cases the campaign will have the money, sometimes not.

So if Drumpf's loans are repaid he is out net $zero. And his airplane company is much richer.

But suppose that there isn't enough to repay the loans. In these situations it is all a game of who gets first dibs on the money that is available. We can be sure that in the latter case, Drumpf will have arranged so that he is right up front in the priority queue to get paid first before the available money runs out.

But suppose that he doesn't get his loans paid back in full. Well, then he has a tax writeoff and that means that the US government foots his loss to the tune of whatever is his marginal tax rate - which we don't know because he is hiding his tax returns. But then again, he probably didn't loan the money himself, but had one of his corporations do it for him - and the government will be covering the loss at the marginal tax rate of that corporation - which can a significant percentage, meaning that we the people are paying the bulk of that loss by giving Drumpf or his corporation a tax break.

Anybody who has done the dance of the seven corporations knows how sweet it is do do self-dealing to hide profits of one corporation as expenses to another (classic Credit Mobilier) and of getting the US Gov't to partially cover any losses through accounting shifts of costs/losses to the corporation that can get the best deal.
http://www.nytimes.com/2016/06/22/us/politics/donald-trump-self-funding-payments.html?_r=0