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Bruce Rauner channeled part of fortune to Cayman Islands To Avoid Paying Taxes

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A Mere Hint of Evidence
A Mere Hint of Evidence

Illinois Democratic governor Pat Quinn, the incumbent, is not someone to get excited about, but his opponent in the upcoming election is a non-Mormon clone of Mitt Romney, down to the off-shore tax havens. Bruce Rauner won’t release his tax returns either, basically thumbing his nose at the electorate.

Multimillionaire Republican Bruce Rauner has channeled at least part of his fortune into the Cayman Islands, a Caribbean paradise long criticized as a tax haven for American investors, the Chicago Sun-Times has confirmed.

A Rauner spokesman insisted that the former private equity investor has met his legal tax obligations and properly disclosed to the federal government information regarding at least five investments by him or his firm in a country that has no income tax and a financial system cloaked in secrecy.

Rauner’s campaign has refused so far to release a full set of his most recent tax returns to corroborate that and perhaps show the extent and value of those investments in offshore companies. No one has suggested Rauner has done anything illegal. In fact, offshore investments among the wealthy have been a common practice in recent years.

(click here to continue reading Bruce Rauner channeled part of fortune to Cayman Islands | Early & Often.)

Seem Never Satisfied
Seem Never Satisfied

Are people really going to vote for this plutocrat who is too good, too powerful, too rich to pay his fair share of taxes to a near bankrupt state? If you planned to run for political office, why would you do this? And worse, once news of Rauner’s lack of patriotism was exposed, he doubled down on it.

Republican gubernatorial candidate Bruce Rauner funneled part of his wealth to a Caribbean territory long considered a tax haven, a business practice he defended yesterday, stressing there was no impact on his personal tax rate.

A central part of Gov. Pat Quinn’s re-election bid has been scrutinizing how the multimillionaire Rauner made his money, and the Chicago Democrat’s campaign has alleged Rauner “stashed” money to avoid paying taxes. “I’d think someone who anticipates being in the public eye wouldn’t be in the Cayman Islands because the question to be asked is, ‘Why would you have invested there?'” Richard L. Kaplan, a University of Illinois law professor told the newspaper. “

AT NO POINT HAVE I TRIED TO AVOID TAXES’

Rauner dismissed the notion yesterday after speaking to Asian leaders in Chinatown.

“At no point have I tried to avoid taxes or done these things that they’re trying to spin,” he said…

“GTCR has its own structure for just a couple of investments. When they invest in overseas companies, they set up that particular structure. It doesn’t impact our personal tax rate whatsoever.”

Cayman, a British territory, is considered one of the world’s largest financial centers and a haven for mutual funds and private equity. International companies and ultra-rich investors have long taken advantage of offshore financial centers there, drawn by regulations and legal systems making it easy to move capital internationally. 

(click here to continue reading Rauner defends Cayman Islands money move – Government News – Crain’s Chicago Business.)

Not A Republican
Not A Republican

and as Aaron Cynic of the Chicagost writes, this isn’t trivial amounts of money, but most likely millions of dollars:

While Rauner might be in full legal compliance, the practice itself allows major corporations and other wealthy individuals to skip out on paying taxes in the United States. According to a June report from the group Citizens for Tax Justice, U.S. based multinational corporations booking profits in tax shelters like the Cayman’s has allowed them to skip out on an estimated $90 billion in federal income taxes. For someone trying to save the Illinois economy with a tax plan that targets professional and business services – many of which are smaller businesses – sheltering profits from a company boasting a $10 billion investment portfolio seems somewhat duplicitous, at best.

(click here to continue reading Rauner Defends Dumping Dollars Into Off-Shore Accounts: Chicagoist.)

Written by Seth Anderson

August 5th, 2014 at 8:13 am

Posted in politics

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The 99 Percent in Illinois Cannot Afford Bruce Rauner as Governor

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End Torture in Illinois
End Torture in Illinois

And speaking of class warriors, Rachel Anspach has a good piece on the Republican One Percenter, Bruce Rauner, including:

Rauner’s stance on financial issues is in line with his own interests–Rauner’s wealth is estimated at $500 million. He made around $53 million in 2012 alone. And it is not clear where much of the income at his private equity firm in Winnetka came from; although he has run into criticism for his company’s deals with nursing homes, which were sued multiple times for patient neglect and wrongful death.

Although Rauner has flip-flopped on the issue, he originally stated that he was in favor of lowering Illinois’ minimum wage to the federal level of $7.25–a stance that is quite rich coming from someone who made over half-a-billion dollars in one year. Thus, his election could devastate the legislature’s current opportunity to raise the state’s minimum wage to $10.65. At the same time as he supports further squeezing the working class, Rauner wants to lower the state’s personal and corporate income taxes, and is against a implementing a graduated income tax. Increasing the minimum wage would inject more cash into the economy, as those at the bottom of the income spectrum spend most of their income. On the other hand, lowering the tax rate on the wealthy would only put more money into their pockets while increasing our state’s budget woes.

Rauner constantly touts his business experience as enabling him to address the state’s budget issues. Yet he has offered little in the way of specifics (beyond cutting taxes, which clearly will not help budget shortfalls). A state is not a company, and the Republican claim that being a CEO prepares one to run a government has become trite and tired. The purpose of government is not just to turn a profit; it is also to govern in a way that maximizes the human rights of all.

(click here to continue reading The 99 Percent in Illinois Cannot Afford Bruce Rauner as Governor – Gapers Block Mechanics | Chicago.)

Illinois Department of Revenue
Illinois Department of Revenue

Sadly, Pat Quinn, the incumbent Democratic Governor, is in real danger of losing to this Mitt Romney clone. For the sake of Illinois, I hope that doesn’t happen, but Quinn is tepid dishwater, at best, so he might very well lose.

As mentioned by Ms. Anspach above, running a company, especially a private equity firm, has next to zero similarity to running a government. You can’t just fire your non-productive citizens, sell off your troubled bridges and other assets, and make Wall Street happy. Governments don’t work that way.

You ran one of Chicago’s biggest private equity firms, GTCR, for years. How does that prepare you to be governor? Being a successful CEO, where I’ve driven a bottom line, assembled teams, driven results, that’s a critical benefit to running the state government. A CEO’s job is leadership, problem solving, and team building. I’ve done that my whole career.

(click here to continue reading Bruce Rauner Answers 13 Questions on Running for Governor of Illinois | Chicago magazine | June 2013.)

 

Written by Seth Anderson

March 25th, 2014 at 5:56 pm

Posted in politics

Tagged with ,