|
Obama's release of tax returns could turn spotlight on Clinton's Cayman Islands investments
Democratic presidential candidate Barack Obama put rival Hillary Clinton on the spot by releasing his full tax returns and challenging her to do the same. This could focus attention on her husband's financial interest in three investment entities registered in the Cayman Islands.
By disclosing his 2000-2006 returns earlier than is customary, the Illinois senator is forcing Clinton either to reveal details about investments by former President Bill Clinton, or to face more questions about what they aren't making public.
The Clintons' tax returns might shed light on Bill Clinton's financial ties to California billionaire Ron Burkle. The former president stands to make tens of millions of dollars with little risk if investments with Burkle's Yucaipa Cos. profit beyond a certain level, the New York Times reported in 2006.
Bill Clinton has a financial stake in three investment entities registered in the Cayman Islands by Yucaipa. Investing in a Cayman Islands partnership is a legal strategy used to minimize taxes because the country has no taxes of its own. The Clintons would still owe US taxes on any income earned there.
Robert Gibbs, Obama's communications director, said the couple should reveal how the former president is compensated by Yucaipa -- whether at a salary taxable at rates as high as 35 percent, or with equity, which could be as low as 15 percent.
Jay Carson, a Clinton spokesman, said in December the Clintons pay what they owe in taxes on income from the funds, although he wouldn't elaborate on the rate they pay.
Source: CaribbeanNetNews
Comments
|
Cayman Islands