Former US President Donald Trump failed to make this year’s Forbes 400 List of America’s wealthiest, after failing to net the qualifying figure of $2.9 billion, settling at an estimated net worth of $2.5 billion.
In 2020, Donald Trump ranked at 339 on the Forbes 400 List, however, after shedding $600 million due to the advent of the coronavirus pandemic that affected the bottom lines of businesses in the hospitality and real estate industries – the latter, a major cash cow for the former world leader – Trump’s ranking faltered.
According to Forbes, Trump’s financial slump was attributed to his reluctance to spread his wealth across sectors that would enable him re-inject the funds into broad-based index funds while he goes about taking on his role as president without conflicts of interest.
The report by Forbes noted that Trump’s ranking on the Forbes 400 List had seen a five-year steady decline, with his $600 million loss last year knocking him out of the list.
Following the 2016 elections, ethics officials urged Donald Trump to divest his assets in real estate – this is usually the case, to avoid conflicts of interest.
Declaring his intention to hold on to his assets while performing his presidential duties, Trump said, “I could actually run my business and run government at the same time.”
Forbes said that Trump’s assets at the time he took office were cumulatively worth an estimated $3.5 billion, debt subtracted; and would have grown to $4.5 billion if he had chosen to sell off his assets and pay taxes that would have cost about $1.1 billion but would go on to yield impressive returns.
It added that his decision to hang on to his assets cost the billionaire businessman $2 billion.
Trump dismissed the benefit government workers are entitled to when they get rid of their holdings to receive a certificate of divestiture that provides them with the privilege of capital gains taxes evasion.
Forbes projected Trump to have earned an estimated net worth of $7 billion by September 2021 if he had taken advantage of the provisions in the US federal tax code that allows him to avoid the payment of capital gains tax.
