Senator John Kerry is enriched by tax havens. Former Democratic Senator (and professional slug) John Edwards got to use tax havens. Former President Bill Clinton got to benefit from tax havens. Connecticut’s Attorney General (and Senate candidate), Richard Blumenthal, saves money with tax havens.
Now we find out that a major Democratic donor and significant other to a Democratic Congresswoman from Maine, Donald Sussman, appears to be guilty of the horrible crime of…gasp…trying to lower his tax burden by using a tax haven. What makes this story interesting in part is the hypocrisy angle. Why is it leftists want all of us to pay more, but they get to utilize havens – or, in the case of folks like Geithner, Daschle, and Rangel, engage in outright evasion?
I’ve argued many times that tax havens are very beneficial for the world economy, so I certainly have no objection to what these Democrats are doing. I just wish they would let the rest of us in on some of the action.
But the other juicy part of the story is that there appears to be a legal catch-22 for Sussman and Congresswoman Pingree. In order for Sussman to be eligible for the big tax savings in the Virgin Islands, he needs to be a legal resident. But in order for Congresswoman Pingree to legally take rides on Sussman’s corporate jet, he needs to be living with her in Maine (technically, riding on his jet is only supposed to be legal if he’s a family member, but I guess shacking up counts in today’s society). Here’s are some amusing excerpts from the Weekly Standard.
As far as liberal financiers go, you don’t get much more powerful than S. Donald Sussman. Since 1989, the hedge-fund billionaire has pumped millions into the coffers of Democratic politicians and their political pet projects. …he’s been one of the top contributors to left-leaning 527 organizations during the 2010 election cycle. But while Sussman has long kept a behind-the-scenes profile, a recent ethics controversy in Maine has flung him into the center of a complicated dispute over state residency, tax dodging and congressional ethics – the implications of which extend all the way from the rocky coast of southern Maine to the offshore tax haven of the U.S. Virgin Islands. According to Sussman’s fiancée, Rep Chellie Pingree (D-ME), the philanthropist lives with her and has been a resident of Maine since 2009. But financial records and other documents indicate that Sussman has claimed full-time residency and extensive tax breaks in the U.S. Virgin Islands for years – and may be continuing to claim them. …Confusion over Sussman’s residency status has been dogging his fiancée’s congressional reelection bid for weeks. As the former president of an ethics watchdog group, Pingree caught flack in late September after she was found to be traveling on Sussman’s private jet – an activity prohibited by election rules, unless the aircraft owner is a family member. In response to Republican criticism over the incident, the congresswoman said that Sussman lives with her in Maine, which may qualify him as family. The House Ethics committee has since cleared her of any charges. …But this seems to conflict with records that suggest a company owned by Sussman is currently receiving financial benefits in the U.S. Virgin Islands. A decade ago, Sussman founded Trust Asset Management, LLP., in St. Thomas, and began paying himself income from his Connecticut-based hedge-fund firm through it. As recently as September, Trust Asset Management LLP., was listed as an active beneficiary of the Virgin Island’s tax breaks, known as the Economic Development Commission (EDC) benefits. U.S. Virgin Island tax attorneys said that in order to receive these benefits through the EDC, a company owner must be a “bona fide” resident of the territory – meaning that the individual needs to live in the area for more than six months out of the year. …Other information has added to the confusion over Sussman’s residency status. During an interview with the Virgin Islands Daily News in July, the hedge-fund owner reportedly told the paper that he has resided full-time in the territory since 2000. …Sussman’s Securities and Exchange Commission filings from September also list his address as the Virgin Islands, as do political contributions he made in 2009. The website for the Great Cruz Bay Homeowners Association in St. John names Sussman as the organization’s president. Over the past few years, the U.S. Virgin Islands have come under scrutiny for being a magnet for criminal tax evaders; individuals who want to take advantage of the territory’s 90 percent tax savings, but don’t want to make it their primary home.
[…] If you’re a rich leftist, you can even be a super-hypocrite and utilize tax havens to protect your […]
[…] If he actually followed the law and paid his taxes, that puts him ahead of some of his fellow leftists, such as Tim Geithner and Tom Daschle. […]
[…] If you were exempted from taxation, you’d presumably be very happy. After all, even folks on the left do everything they can to minimize their tax payments. […]
[…] You probably won’t be surprised to learn that Secretary Lew wasn’t the first Democrat to utilize tax havens. Lawmakers such as John Kerry, Bill Clinton, John Edwards, and others on the left also have utilized tax havens to boost their own personal finances. […]
[…] You probably won’t be surprised to learn that Secretary Lew wasn’t the first Democrat to utilize tax havens. Lawmakers such as John Kerry, Bill Clinton, John Edwards, and others on the left also have utilized tax havens to boost their own personal finances. […]
[…] You probably won’t be surprised to learn that Secretary Lew wasn’t the first Democrat to utilize tax havens. Lawmakers such as John Kerry, Bill Clinton, John Edwards, and others on the left also have utilized tax havens to boost their own personal finances. […]
[…] what about lawmakers such as John Kerry, Bill Clinton, John Edwards, and others on the left who have utilized tax havens to boost their own personal finances? I very much doubt that any of them deserve to be called libertarian (though the burden of […]
[…] I guess all the other wealthy leftists with offshore-based investments probably think that as well, […]
[…] But statist politicians often are hypocrites. I’ve already written about lawmakers such as John Kerry, Bill Clinton, John Edwards, and others on the left who have utilized tax havens to boost their own personal finances. […]
[…] you would think that he might respond by noting that many top Democrats directly invest in tax havens, and that presumably all of them – as I noted in my WSJ interview – are indirectly invested in […]
[…] explained that prominent Democrats routinely utilize tax havens for business and investment purposes, including as Bill Clinton, John Kerry, John Edwards, Robert Rubin, Peter Orszag, and Richard […]
[…] explained that prominent Democrats routinely utilize tax havens for business and investment purposes, including as Bill Clinton, John Kerry, John Edwards, Robert Rubin, Peter Orszag, and Richard […]
[…] you would think that he might respond by noting that many top Democrats directly invest in tax havens, and that presumably all of them – as I noted in my WSJ interview – are indirectly invested in […]
Thanks again Dan – great expose
[…] you would think that he might respond by noting that many top Democrats directly invest in tax havens, and that presumably all of them – as I noted in my WSJ interview – are indirectly […]
[…] when those attacks occur, I’m extremely confident that the stories will fail to mention that prominent Democrats routinely utilize tax havens for business and investment purposes, including such figures as Bill Clinton, John Kerry, John Edwards, Robert Rubin, Peter […]
[…] when those attacks occur, I’m extremely confident that the stories will fail to mention that prominent Democrats routinely utilize tax havens for business and investment purposes, including such figtures as Bill Clinton, John Kerry, John Edwards, Robert Rubin, Peter Orszag, and […]
[…] when those attacks occur, I’m extremely confident that the stories will fail to mention that prominent Democrats routinely utilize tax havens for business and investment purposes, including as Bill Clinton, John Kerry, John Edwards, Robert Rubin, Peter Orszag, and Richard […]
I live in Chellie’s district, and worked very hard with an incredible group of people to get her ousted. She and Don’s money, attack groups, etc proved to be too big a monster in the end.
I now have 103 weeks to show Maine how they were fooled, and that she does not deserve to keep “her seat” – as she puts it. OUR seat will turn in 2012!
Please feel free to join me, or to work on the same effort in your area if you also have a corrupt politician “representing” you!
@economics9698
Some pigs are more equal than other pigs — perfectly put.
Some pigs are more equal than other pigs.
Well, the rich Democrats simply deserve a little extra reward compared to most of us, for the enormous benefit of redistribution and central planning they offer the population at large.
They are like the old Soviet Volga car driving party officials: The only ones who have the moral authority to escape equality and central planning are those encharged of central planning and equality itself.