Wednesday, February 07, 2018

McConnell, Wife Dodge Millions in Taxes

Over five years, millions of dollars were funneled to a Chao family foundation via two offshore firms that list a New York address but are not incorporated in the US. Two entities with those same names are incorporated in the Marshall Islands, one of the world's most secretive offshore tax havens. The Chao family's shipping business is New York based. Neither the Foremost Group nor the Department of Transportation would comment on the two firms actual and imaginary paper locations. Majority Leader Mitch McConnell joined his wife, Elaine Chao, now U.S. secretary of transportation, at a ceremony on the Harvard Business School campus to dedicate a new building emblazoned with the Chao family name. Funded by a $40 million gift from the Chao family and its foundation. The family's generosity appears to have come at the expense of taxpayers, since the money would already be in the public treasury had it not been sheltered in offshore tax havens.

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Chao and McConnell have been key voices in promoting the Trump administration economic policies. McConnell's key role in tax reform shifted the corporate tax code to a territorial system, a move highly expected to reward firms that funnel earnings through offshore tax havens, such as the Cayman Islands or the Marshall Islands. Speaking at the Davos World Economic Forum's annual meeting in January, Chao called Trump's "America first" policies "the affirmation of American exceptionalism."

The connection between the offshore accounts and the donation to the Chao family foundation were found through a search of the Paradise Papers, shared by the International Consortium of Investigative Journalists with reporting partners around the world.

McConnell married Chao, the daughter of shipping magnate James Si-Cheng Chao, in 1993. James Chao fled the civil war in China to arrive in Taiwan, and shortly thereafter immigrated to the United States.

Comments

"Speaking at the Davos World Economic Forum's annual meeting in January, Chao called Trump's "America first" policies "the affirmation of American exceptionalism." Critics, she noted, "who don't want to listen to him can leave."

If you don't want to pay your income taxes like the rest of us please do leave and don't come back. America has far too many freeloaders like Chao.

#1 | Posted by danni at 2018-02-05 12:22 PM

Taxes are for the Hoi Polloi.

#2 | Posted by donnerboy at 2018-02-07 02:42 PM

The rich give each other money to keep it out of our sticky little hands.

#3 | Posted by SheepleSchism at 2018-02-07 03:34 PM

A member of the Government, hiding their money in a foreign country in order to avoid supporting America.
Now that's treasonous.

#4 | Posted by TFDNihilist at 2018-02-07 03:45 PM

Chao must have learned from the Southern Poverty Law Center how to "invest" offshore.

#5 | Posted by homerj at 2018-02-07 03:46 PM

"please do leave and don't come back" leaving does not stop you from owing taxes even on money eared in your new country.

#6 | Posted by THomewood at 2018-02-07 05:31 PM

"McConnell's key role in tax reform shifted the corporate tax code to a territorial system, a move highly expected to reward firms that funnel earnings through offshore tax havens"

Color me stunned.

#7 | Posted by Danforth at 2018-02-07 05:37 PM

Strange he's dodging millions in taxes on a $174,000 salary but he's an (R) so noone better question it.

#8 | Posted by IndianaJones at 2018-02-08 12:06 PM

Tax Evasion?

Lock Her up!

#9 | Posted by donnerboy at 2018-02-08 12:41 PM

Tax evasion is admired among republicans.

Repaying the society which enabled your success is for suckers. You got rich all on your own.

#10 | Posted by SpeakSoftly at 2018-02-08 03:27 PM

Tax evasion is admired among republicans.

"Not paying any taxes makes me smart!"

--The Tax-Evader-in-Chief.

#11 | Posted by donnerboy at 2018-02-08 04:24 PM

In 2007, SEC Documents Revealed That The Clinton's Had A Financial Stake In Three Of Ron Burkle's Investment Companies Registered In The Cayman Islands. " Securities and Exchange Commission documents and financial-disclosure forms filed by Hillary Clinton show that Bill Clinton, 61, has a financial stake in three investment entities registered in the Cayman Islands by Burkle's Yucaipa Cos. LLC." (Timothy Burger And Ryan Donmoyer, "Clinton's Burkle Ties Include Funds In Cayman Islands," Bloomberg, 12/17/07)

From 2002 To 2009, Bill Clinton Served As Senior Adviser For One Of The Companies, Yucaipa. "When billionaire Ronald Burkle's Yucaipa investment operation agreed to put more than $25 million into a Chinese media company this fall, the investor group didn't include on of Yucaipa's high-profile partners: former President Bill Clinton ... Mr. Clinton has been a senior adviser at Yucaipa and also had a financial interest in certain investment there." (John Emshwiller, "How Politics Affect Yucaipa," The Wall Street Journal, 12/15/07)

#12 | Posted by homerj at 2018-02-08 06:10 PM

In 2014, Bill Clinton "Expressed Sympathy" For Companies Using Inversion Transactions And Said "Like It Or Not, This Inversion, This Is Their Money." "As many Democrats attack companies that take advantage of corporate tax inversions, former President Bill Clinton expressed sympathy for them. 'Like it or not, this inversion, this is their money,' Mr. Clinton said in an interview during the Clinton Global Initiative in New York." (Amy Chozick, "Bill Clinton On Inversions: 'This Is Their Money,'" The New York Times, 9/23/14)

#13 | Posted by homerj at 2018-02-08 06:11 PM

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