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The San Clemente transactions raise other questions. For instance, the President's tax advisers assert that he is not liable for California income taxes; yet he votes in the state and claims it as his legal residence.
The President declared last week that he plans to turn the San Clemente estate over to the U.S., but that he and his wife would retain the right to use it for the rest of their lives. If the deed is signed soon, the President's lawyers said, he would be eligible for an immediate tax deduction of about $120,000. But Press Secretary Ronald Ziegler noted that in the present climate it is "very unlikely that the President would seek a tax deduction for his San Clemente gift."
Even more important, why did Nixon pay no capital-gains taxes on the sale of most of his San Clemente property to Abplanalp and Rebozo? The White House conceded that the question was a bit tricky. One of Nixon's tax advisers concluded that the President had not realized a capital gain on the transaction, but another White House adviser —Coopers and Lybrand—calculated that he made $ 117,370 on the sale. While all that may be perfectly legal, it raises the question whether the President —who sets a moral tone for the nation —should have pressed every tax advantage and accepted huge loans and gifts from rich friends.
Every Loophole. After his three-week analysis, Lawyer Gemmill asserted that he was "satisfied 100%" that the President had done nothing illegal in his avoidance of taxes. But no one could say for sure on the basis of the snarl of figures released last week. What is unquestionable is that the President has taken advantage of every conceivable loophole to reduce his tax obligations. He has kept nearly half of an expense allowance provided by the taxpayers for miscellaneous official obligations.
"With regard to my tax returns," said Nixon in a statement, "the accountants who prepared them listed all of the deductions—as any accountant would and should do on behalf of his client." As for the serious questions concerning the donation of his vice presidential papers and his failure to pay capital gains taxes on the sale of his San Clemente property, the President added, he would ask the Joint Congressional Committee on Internal Revenue Taxation to review the matters—and he promised to abide by the committee's decisions. If the committee should decide against him, the President might find himself out of pocket by as much as $267,000—plus interest for delinquent payments.
* During the four-year period, in addition, the President donated $10,331 to charities. In different years, for example, he contributed to the American Legion Auxiliary ($36), the Billy Graham Evangelistic Association ($4,500), Norman Vincent Peale's Marble Collegiate Church ($50), the Southern California School of Theology ($200), the Duke University Loyalty Fund ($750).