[Sciutto:] If you ever heard Donald Trump tell his own life story, and I'd say there's a pretty good chance of that, this might sound familiar.
[Donald Trump, President Of The United States:] My father gave me a small loan of a million dollars, I came into Manhattan and I had to pay him back, and I had to pay him back with interest. I started with a million-dollar loan, I built a $10 billion company. My father gave me a very small loan in 1975, and I built it into a company that's worth many billions of dollars. I built that into a massive empire, and I paid my father back, that loan.
[Sciutto:] Well, long before he ever run for president, Donald Trump, the brand was based on that story, the story of self-made billions. But a stunning new "New York Times" investigation disputes that.
[Harlow:] For 18 months in a locked room at the "New York Times", three journalists poured over tens of thousands of documents, going back decades, learning that the future president and his siblings received more than a billion dollars from their parents. In the process, helping, according to the "Times" to hide much of that family fortune from the IRS. Just moments ago, the president responded to the "Times" story on Twitter, calling it "old, boring and an often told hit piece." Notably, he did not say it was inaccurate. Our Cristina Alesci has been pouring through all this, she joins us now. I mean, just looking at what the "Times" has here on the front page, they have checked I mean, it's amazing, right? And we don't know how they got all of this, how they got these tax returns, but they did. What is the big takeaway?
[Cristina Alesci, Cnn Correspondent:] It completely destroys Trump's narrative that he is a self-made billionaire, and in details in pain- staking ways, how his father, Fred, transferred his vast fortune to his children by either illegally evading taxes or legally avoiding them. But here is some of the numbers specifically
[Harlow:] Yes
[Alesci:] Before we get into the nitty-gritty of how it all works that the "Times" unearthed. At three years old, Trump was earning $200,000 a year already. At age eight, he was a millionaire. At 17, he was part owner of a 52-unit apartment building, and after graduating college, Trump was receiving a million dollars a year from his father sorry, just a million dollars from his father. At in his 40s and 50s, he was getting $5 million annually. Look, it seems like Trump gave his children based on the "New York Times" reporting, an equal share of his dad's fortune. But Trump, according to the "New York Times" disproportionally benefitted because his father was there when Trump ran into issues with his various risky investments. In other words, Trump had a very big safety net
[Harlow:] Yes
[Alesci:] He goes out there
[Sciutto:] Yes
[Alesci:] And says I did all of these deals, they were risky, I took you know, I took these risks and they were based on my gut instincts, and yes, perhaps, but he also did so with a very vast
[Harlow:] Yes
[Sciutto:] Yes
[Alesci:] Safety net
[Sciutto:] I mean, just one year of income as a teenager there belies that my father only gave only gave me a million-dollar loan
[Alesci:] Right, and those are all in today's dollars
[Sciutto:] Yes
[Alesci:] By the way.
[Sciutto:] Question for you, anything illegal uncovered in this or this was legal tax evasion?
[Alesci:] Well, the "New York Times" goes as far as to detail what may have been a fraudulent scheme
[Sciutto:] Right, the use of that word is defraud.
[Alesci:] Exactly, but at this point, we've probably passed the Statute of Limitations for a lot of these crimes, although the New York Department of taxation says that it's going to vigorously pursue all of the appropriate avenues for investigation. Look, the most interesting part of this development here is that, this backs Trump into a corner. If he really feels this story is untrue and wants to sue the "New York Times", he is at risk for revealing his tax returns. If he doesn't sue and takes that counter-puncture or position, then he is essentially admitting that the "Times" story is correct.
[Harlow:] By the way, the strongest counter-punch to this would be, do what every other presidential candidate and president
[Alesci:] Yes
[Harlow:] Has done
[Sciutto:] Right
[Harlow:] In modern history, and that is release your tax returns.
[Sciutto:] Yes
[Harlow:] Politically, what's your read?
[Alesci:] Politically, this definitely adds fuel to the fire that the Democrats are building if they take control of either chamber to call for Trump to release his tax returns. And they will say the American people need to know whether or not President Trump is using the same tax avoidance or illegal tax maneuvers that his father used. And that's where the rubble will meet the road.
[Sciutto:] Legislation being considered to require
[Harlow:] Yes
[Alesci:] Definitely
[Sciutto:] The release of those tax returns. Cristina Alesci
[Alesci:] Thank you
[Sciutto:] Very much, let's bring back in Laura Coates who certainly knows the legal aspect here. So you just heard that the Statute of Limitations passed, I believe it's three years for tax, although, it can be extended under certain circumstances. But there is a civil, potential civil risk to the president. Is that right?
[Laura Coates, Cnn Legal Analysts:] It is right, the idea that limitations period has run for criminal cases, it can be sent to six years. But it's really important to note that it really is from the last instance of the tax evasion. Not just the actual calendar year, and so there is a conceivable theory that could run, that says that if there is evidence in the most recent tax returns or that due in that limitations period, if there is still evidence of tax evasion or an ongoing quest to try to dupe the government and perhaps it could actually toll in that fashion. However, you're largely right, the idea of limitations being run, the criminal contacts is there. On the civil side of things, though, there is no Statute of Limitations, period. The government can always get their money, it often runs up to 75 percent of the amount of income that you tried to hide from the government. And so, there is a way to do just that. But again, the larger issue here is the overall scheme of things. What is what are the activities that have been undertaken to try to evade and circumvent the tax laws? Not just exploiting legal loopholes, but trying to do it in a criminal way. That's the big question here.
[Harlow:] Where do you think this goes? What's your gut as a former prosecutor? Does this is this just a bad look or does it actually result in anything?
[Coates:] Well, one, I think that Mueller's team probably already has this information. I also think the state of New York and they're looking at the Trump Foundation and their own tax issues as probably part of this overall controversy. What someone like Michael Cohen might know about the legal or tax strategy happening may come into play. But ultimately, this is but the third instance now where the President of United States hand may be forced to actually show his income taxes, we already know that just having an audit does not say you cannot provide the information
[Sciutto:] Right
[Harlow:] But you have the emolument cases out of Washington D.C. and out of this area that says that the president has been benefitting financially from the use of his hotel, et cetera. And that's also asking for his tax returns and how he's quantifying that payment. So you have yet another instance, this could actually be the straw that breaks the camel's back that says I will not release it. Emoluments are very obscure part of the competition, plus this, may say we will get full information and disclosure.
[Scuitto:] You know, and listen, this is happening as the president has repeatedly advocated for tax legislation, tax cuts
[Harlow:] Right
[Sciutto:] That he has a personal interest in
[Harlow:] And also ending the estate tax
[Sciutto:] Yes
[Harlow:] A promise
[Sciutto:] Yes
[Harlow:] He made on the trail. Laura, thanks, so interesting
[Coates:] Thank you
[Harlow:] We appreciate your expertise. One of the reporters who broke that story is going to join us next hour. Ahead for us now, we'll call the action the president not up for re-election for another two years. His message to the supporters for the midterms vote like I am.
[Sciutto:] We are moments away as well from the opening bell on Wall Street. Dow set to rise this morning to reach a new record high. Something the president has already tweeted about this morning. Investors will be keeping their eye on the jobs report due out at the end of the week.