Forget Swiss bank accounts – after it was revealed that Mitt Romney was able to exploit tax loopholes in the Cayman Islands they became the new target for those attacking shelters.Romney is hardly the only wealthy individual to use the Cayman Islands as a tax shelter. He’s not even the only presidential candidate to use them.
As the Daily Caller reports:
Before Hillary Clinton was appointed secretary of state and while she was still in the U.S. Senate, Bill Clinton was a partner in an investment fund, Yucaipa Global Partnership, which is registered in the Cayman Islands, a British Overseas Territory located in the Caribbean Sea which is a popular tax haven for the wealthy.
As a partner to the firm between 2002 and 2007, Clinton was paid an estimated $10 million, according to a Washington Post article from 2008. He was also rumored to been in negotiations with Burkle for a $20 million payout when he separated for the firm in 2008, the Wall Street Journal has reported.Clinton’s involvement with Yucaipa, which was founded by Ron Burkle, a longtime Democratic donor who is now supporting Republican Ohio Gov. John Kasich, was first reported by ABC News in 2008 when the former first couple’s financial statements were revealed during Hillary Clinton’s presidential bid.
As Jack Blum, an attorney and expert on offshore tax havens, told ABC at the time: “No average person has interest and funds in the Cayman Islands. This is all the above-average, non-tax-paying, super rich.”
The former president earned money from Cayman interests in other ways. As Clinton financial records show, Bill Clinton was also paid $225,000 by a company called Whisky Productions to speak at a March 28, 2011 “event that will target the business community in Grand Cayman.I don’t actually care. I didn’t care when Romney did it, and I don’t care when the Clintons did it. Everyone does all they can to minimize their tax burden.
But at least Romney didn’t exploit these loopholes then turn around and lecture others for using them. Clinton on the other hand attacks them to try to score votes with the populists.“We’re now in a position, I think, where we can go after some of these schemes that you did read about, the kind of misclassifying of income, trying to make it look like it’s a capital gain, when it’s really ordinary income, going ahead and routing income through the Bahamas or the Cayman Islands or wherever,” Clinton told MSNBC’s Chris Hayes
I guess the “dead broke” Clintons weren’t against these tax loopholes until after they were able to finish exploiting them. That’s because high taxes seldom hurt the rich – they hurt those climbing the ladder in trying to become rich.
[Note: This post was written by The Analytical Economist]