Saturday, February 16, 2013

Republicans Furious at Secretary of the Treasury Designate Jack Lew Had an Investment Domiciled in the Cayman Islands

Furious Because He Lost Money

During the recent Presidential campaign Republicans happily supported the position of Mitt Romney that Mitt Romney was entitled to invest money offshore and avoid U. S. taxes, and in fact not even have to disclose the investments.  But now they are all upset that the man selected to be Secretary of the Treasury had a small investment in the Caymans.

Here is the story from the newly crowned apologist for the Republicans, Dana Milbank in the Washington Post, (the paper of record of the old crowned apologist for the Republicans).

Lew, who was White House chief of staff while Obama’s campaign was pummeling Romney over his pay and taxes, received a $945,000 bonus in January 2009 after a brief tenure at Citigroup — just as the bank announced huge losses and took a taxpayer bailout. Lew also invested $56,000 in a Citigroup venture-capital fund registered in the Cayman Islands — registered in the very building, in fact, that Obama labeled “the largest tax scam in the world.”

See the problem here, the reason why Republicans are upset is this

This time, it was Baucus’s task to inoculate Lew against charges that he was associated with the very structure Baucus had identified with tax evasion. “Did you know at the time it was Cayman?” he asked. “When did you divest? . . . Did you pay taxes on that investment?”

Lew’s claims that he didn’t know where the fund was based and that he lost money on the investment didn’t quiet the Republican questioners.

which now reveals the real reason for Republican anger.  Mr. Lew lost money and even worse disclosed the investment.  All of which makes Mr. Romney look bad, and for Republicans, someone who lost money is surely not qualified to be in government.

Next time Mr. Lew, invest tens of millions offshore and hide the money and skip out on the taxes.  Republicans will love You.

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