Sunday, September 27, 2020

Is Trump the Country's Biggest Free Rider?

According to a recent New York Times article, President Donald J. Trump only paid $750 in federal income taxes in 2016, another $750 his first year in office, and paid zero in federal income taxes in 10 of the last 15 years. This is despite the fact that, according to Investopedia, Americans have paid $1.4 billion a year to keep the president well cared for and protected. And if we consider the protection and care of the presidency non-excludeable and non-rival public good because the benefits of a well protected president, most notably a stable government, and the benefits of a well run executive branch, are available to all tax-payers including the president, President Trump is underinvesting in this public good and therefore, is a free rider. 

What may make President Trump even more of a free rider is that though the protection of the presidency can be considered a public good, Trump has not only been the most direct beneficiary of such protection as other presidents have, but unlike other presidents, he has uniquely used his position as president to enrich his private businesses.

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