I am writing because I watched my dad — a successful dairy farmer — work himself to death while playing by the rules. Everything about this election, and especially the recent glimpse into Donald Trump’s past tax obligations, is an insult to people like my dad. The grotesque revelations in The New York Times are honestly, and sadly, no surprise; at a more disturbing level, they illuminate some of the most egregious flaws in the current United States tax code for people in certain industries and tax brackets to game the system.
My Dad Was a Successful Republican Businessman Who Worked Himself to Death…and Guess What, He…
Laura Borgendale

Ironically, the tax rules related to net operating losses and the ability to carry them forward were designed for farmers. The problem with farming was that in some years you might have a bumper crop immediately following a drought.

So let’s assume the year before last your father lost $30,000 due to an infection his cows developed. The antibiotics worked and his cows recovered and this year he made $100,000. Without the NOL tax rule your father would have had to pay $30,000 in taxes this year. With the rule he could apply last year’s loss to this year’s gain — making up for last year’s loss. It is only fair that the government should be your partner in the losses AND the gains. The law was designed for this very purpose.

Trump has always paid his taxes — the IRS audits have ensured that this is the case. Your father, no doubt, used the NOL just like every other farmer in the United States.