The Trump Family Political Business
One reason 60 million voters elected Donald Trump is because he promised to change Washingtons culture of self-dealing, and if he wants to succeed hes going to have to make a sacrifice and lead by example. Mr. Trump has so far indicated that he will keep his business empire but turn over management to his children, and therein lies political danger.
Mr. Trump has for decades run the Trump Organization and during the campaign said if he won the Presidency hed turn over the keys to Donald Jr., Eric and Ivanka, all of whom are now serving on the Trump transition. A company spokesperson says the family business is in the process of vetting various structures and that the ultimate arrangement will comply with all applicable rules and regulations.
Some of Mr. Trumps lawyers have called the plan a blind trust, which past Presidents have used to protect their assets from the appearance of conflicts-of-interest. But that set-up typically involves liquid assets like bonds and stocks, not buildings or a branding empire. Mr. Trump will know how any given decision will affect, say, the old post office property in Washington, D.C. that hes leasing from the federal government (another conflict). By law blind trusts are overseen by an independent manager, not family members.
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Mr. Trumps best option is to liquidate his stake in the company. Richard Painter and Norman Eisen, ethics lawyers for George W. Bush and President Obama, respectively, have laid out a plan, which involves a leveraged buyout or an initial public offering.
Mr. Trump could put the cash proceeds in a true blind trust. The Trump children can keep the assets in their name, and he can transfer more to them as long as he pays a hefty gift tax. Finally, Mr. Trump should stipulate that he and his children will have no communication about family business matters. The alternatives are fraught, perhaps even for the Trump Organizations bottom line: Thanks to a Clinton Administration precedent, Presidents can face litigation in private mattersso the company will become a supermagnet for lawsuits.
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The political damage to a new Administration could be extensive. If Mr. Trump doesnt liquidate, he will be accused of a pecuniary motive any time he takes a policy position. For example, the House and Senate are eager to consider tax reformand one sticking point will be the treatment of real estate, which will be of great interest to the Trump family business. Ditto for repealing the Dodd-Frank financial law, interest rates and so much more.
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There is no question that a Trump business sale would be painful and perhaps costly. .. And remember that Hillary Clinton lost in part because the public didnt want a President who mixed politics and personal gain at the State Department and Clinton Foundation. Millions of Americans have put their trust in Mr. Trump to succeed as President and improve their lives, not treat this as a four-year hiatus from his business. The presidential stakes are too high for Mr. Trump to let his family business become a daily political target.
http://www.wsj.com/articles/the-trump-family-political-business-1479426984
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(You may be able to read the whole story if you google the title)
COLGATE4
(14,732 posts)If Mr. Trump doesnt liquidate, he he will be accused of a pecuniary motive any time he takes a policy position."
He doesn't give a shit!