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Jewish World Review
Feb. 14, 2013/ 4 Adar, 5773
A Lew-dicrous loophole
By
Dana Milbank
http://www.JewishWorldReview.com |
President Obama won reelection in part by beating up on his opponent for receiving big corporate payouts in exchange for dubious work and for socking away money in tax havens such as the Cayman Islands.
So it’s a bit, well, rich that Obama chose as his new Treasury secretary a man who received a big corporate payout for dubious work and who socked away money in the Cayman Islands. This awkward fact pattern forced a role reversal Wednesday on Capitol Hill, as Obama’s nominee, Jack Lew, came before the Senate Finance Committee for his confirmation hearing. Republicans expressed outrage about his compensation and his investment — in other words, giving him the Mitt Romney treatment. And Chairman Max Baucus (D-Mont.), an outspoken foe of offshore tax havens, helped Lew defend himself. In Washington, where you stand on an issue depends on where you sit. 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.” Sen. Chuck Grassley (R-Iowa) pressed Lew to “explain why it might be morally acceptable to take close to a million dollars out of a company that was functionally insolvent and about to receive a billion dollars of taxpayers’ support.” Grassley also asked Lew to justify investing his money in one of the 12,000 businesses based in Ugland House, a five-floor building in Grand Cayman. “There’s a certain hypocrisy in what the president says about other taxpayers and then your appointment,” the senator observed. Lew’s explanation was Romneyesque. “I was an employee in the private sector compensated in a manner consistent with other people who did the kind of work that I did in the industry,” he said, justifying his payout. As for his offshore investment: “I reported all income that I earned. I paid all taxes due.” In a sense, none of this matters. Lew’s confirmation isn’t in doubt, a fact supported by the way he sauntered down the hall to his hearing in the Dirksen Senate Office Building, hands in pockets. His answers were often vague but cheerful sentiments (“I would look forward to working with you and others on a bipartisan basis to think through these ideas”). Lew’s best defense on the Caymans matter was that he lost money on the investment, so there were no taxes to be avoided. But this only proves that he wasn’t necessarily good at selecting tax havens. And his plum job at Citigroup, which Sen. Orrin Hatch (R-Utah) said has been called “a political trophy position,” is a fine example of the revolving door between government work and private-sector lucre. Obama frequently mentioned Ugland House on the campaign trail in 2008. Baucus held a hearing on it that year, saying that the place had “a lot to do with tax evasion” and the $345 billion gap “between the taxes legally owed and the taxes timely paid.” But on Wednesday, it was the Republicans’ turn to display a poster of Ugland House, a modern white structure with palm trees in front. “Mr. Lew,” said Sen. Pat Roberts (Kan.), savoring the irony, “welcome to what some of the press have described as the Grand Cayman Ugland House rehab and restoration hearings.” 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. “It’s no wonder that maybe you and the president haven’t proposed legislative solutions to what you consider, or what the president considers, a tax scam,” Grassley observed. Lew argued that “the tax code should be constructed to encourage investment in the United States.” “Ugland House ought to be shut down?” Grassley asked. “Senator, I am actually not familiar with Ugland House,” the witness pleaded. “I understand there are a lot of things that happen there.” Yes, and, according to the man who nominated Lew, these things are tax scams.
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Previously:
• 02/12/13 Let the bleak times roll
• 02/12/13 Senator of the evening: Bob Menendez has been selling his influence
• 02/11/13 'Trust me' is not enough on drone warfare
• 02/07/13 Chip off the Paul block: How will Rand separate from his father?
• 02/06/13 Empty talk, happy talk
• 02/05/13 John Kerry, finally where he belongs
• 02/04/13 With a friend like Jim Inhofe ...
• 01/29/13 Rubio's immigration 'reality' show
• 01/27/13 Ryan And Pence Represent Polar Opposites Of GOP
• 01/24/13 Congress's daffy duck saga
• 01/22/13 So much for unity: Obama's speech failed to rise to the moment
• 01/21/13 Less an inauguration than a tepid rerun
• 01/03/13 The GOP's savior
• 01/03/13 Boehner defined by a Sandy sidestep
• 12/21/12 Obama in focus, yet all over the map
• 12/20/12 A deal or a mutiny
• 12/13/12 Joe Lieberman's sad send-off
• 12/10/12 Post-thought think tank: Why DeMint and Heritage are a perfect pair
• 12/06/12 Republicans wave the white flag
• 12/05/12 Romney's last duty
• 12/04/12 Obama's poor efforts at transparency
• 12/03/12 The urge to purge: Rational Republicans defy purists at their own peril
• 11/30/12 The naked 'fiscal' truth: Lawmakers can't hide the lack of progress
• 11/28/12 Santorum's new cause: opposing the disabled
• 11/20/12 Norquist in defeat
• 11/19/12 Susan Rice's tarnished resume
• 11/15/12 Let those poor states secede
• 11/12/12 Whole lot of blaming going on
• 11/08/12 At Romney headquarters, the defeat of the 1 percent
• 11/07/12 Why I voted Republican
• 11/06/12 Romney's new tune
• 11/01/12 The Supreme Court's dog-day afternoon
• 10/31/12 A perfect political storm
• 10/29/12 Behind the Clinton 'bromance,' a stealth campaign
• 10/25/12 A Trumped-up bomb
• 10/24/12 Groupthink Live: How conventional wisdom congeals in 2012
• 10/23/12 The sound of worldviews not colliding
• 10/22/12 The tea party is helping Dems
• 10/18/12 Moderate Mitt wins conservatives' blessings
• 10/16/12 Reid's latest salvos are beneath the dignity of his office
• 10/08/12 Obama pays price for ducking the questions
• 10/05/12 Mitt Romney holds his own -- and then some -- in first debate
• 10/03//12 The Zinger candidacy --- all sugary platitudes, no protein
• 09/25/12 Obama makes room for 'The View'
• 08/17/12 Hateful speech on 'hate' groups: The Family Research Council is no KKK
• 08/16/12 Now Dems are employing harsh tactics
• 08/14/12 Paul Ryan on soapbox at Iowa State Fair
• 08/13/12 Romney's welfare gambit
• 08/07/12 Harry Reid's latest broadside
• 07/26/12 Romney can't have it both ways on defense spending, tax cuts
• 07/19/12 Ron Paul, fed up
• 07/17/12 The rotten results of one-party rule
• 07/11/12 The missing giants of the Senate
• 07/09/12 Representative Gaffe
• 07/02/12 The umpire strikes back
• 06/25/12 Norquist delivers the GOP's marching orders
• 06/19/12 The left, feeling left out
• 06/18/12 Skip the falsehoods, Mr. President, and give us a plan
• 06/15/12 The Wall Street Senate
• 06/13/12 Jeb Bush's heresy
• 06/12/12 Pileup at the White House
• 06/11/12 Obama's fate could be in Europe's hands
• 06/04/12 Welcome to Camp Competitive
• 05/31/12 Digging a racial grave
• 05/30/12 A new conspiracy theory: Is Romney a unicorn?
• 05/29/12 Do Republicans really want to clone one for the Gipper?
• 05/24/12 Obama's protectors are under the microscope
• 05/22/12 Obama's Old World mess: Allies are coming up short at a key moment
• 05/16/12 Where have all the candidates gone?
• 05/15/12 Barack Obama, the first female president
• 05/14/12 Irrationality wins: Voter cure for Congress's failures will likely backfire
• 05/08/12 Obama's marriage mess: His advisers scramble to clean up his 'evolution'
• 05/07/12 Taking out Dick Lugar
• 05/03/12 Gingrich may have ended campaign, but he will remain out of this world
• 05/02/12 Our do-almost-nothing Congress
• 05/01/12 President Obama, campaigner in chief
• 04/25/12 Romney's immigration Etch a Sketch
• 04/23/12 A congressional deal on immigration? Dream on
• 04/19/12 Dems battle back against Republican 'war on women'
• 04/18/12 Debauchery: An American govermental specialty
• 04/17/12 Silent witness
• 04/12/12 Rebuffing Obama's gimmicky 'Buffett Rule'
• 04/11/12 Santorum's Gettysburg surrender
• 04/09/12 The facts vs. Mitt Romney
• 04/06/12 Mitt Romney, talking to the press, keeps the press at a distance
• 04/05/12 From tracking al-Qaeda to tracking the wayward spouse
• 04/04/12 Budget cuts as back-door deregulation
• 03/26/12 My pet Mitt
• 03/22/12 Mitt Romney's latest gaffe may be etched in history
• 03/20/12 Supreme Court conceives of life after death
• 03/15/12 Conservative for Obama: The British PM as campaign prop
• 03/14/12 In Section 60, a silent search for meaning
• 03/13/12 Super Friends, unite
• 03/12/12 It's time to believe: Romney's a winner
• 03/07/12 Settling in to Washington's ways
• 03/06/12 AIPAC beats the drums of war
• 03/05/12 Did Republicans forget the women's vote?
• 02/29/12 Mitt Romney's acceptance speech, in (mostly) his own words
• 02/28/12 Common ground becomes a great divide
• 02/27/12 An expert witness for the GOP gender gap
• 02/21/12 Where Romney shines
• 02/15/12 A Republican death wish?
• 02/14/12Obama's budget games
• 02/13/12 Are GOPers playing right into Obama's hands?
• 02/08/12 Obama pumps the compressor of Joe Hudy's Extreme Marshmallow Cannon
• 02/07/12 Abramoff's atonement
• 02/01/12 Why we in the media just love Newt
• 01/31/12 The end of the road for Newt Gingrich?
• 01/25/12 Gingrich is Obama's best surrogate
• 01/24/12 Tim Pawlenty, Mitt Romney's attack dog
• 01/16/12 Mitt Romney's Al Gore problem
• 01/12/12 Kamikaze Gingrich, on the loose in South Carolina
• 01/11/12 Journalists' campaign trail secrets revealed
• 01/10/12 Mitt Romney's money problem
• 01/09/12 Newtonian exceptionalism
• 01/05/12 Mitt Romney out of control
• 01/04/12 Indecision 2012: In Iowa and the GOP
• 01/03/12 Rick Santorum's curious closing argument
• 12/28/11 A few cracks in my crystal ball
• 12/23/11 A few cracks in my crystal ball
• 12/20/11 Strange brews and views?
• 12/19/11 Cellphone ban would be a distraction
• 12/15/11 Harry Reid, Mitch McConnell and the Malfunction Minuet
• 12/14/11 The presidential auction of 2012
• 12/12/11 Newt's tactics comes back to haunt him
• 12/06/11 Can an anthem save Occupy non-movement?
• 12/05/11 The winner of the GOP campaign: Washington
• 11/30/11 Barney the bully: Congressman Frank's other legacy
• 11/23/11 Jon Kyl's search-and-destroy mission
• 11/21/11 Pay to play, brought to you by Washington
• 11/17/11 Big enough to save the supercommittee?
• 11/16/11 Why Newt Gingrich won't last
• 11/08/11 The 2012 campaign gets seedier
• 11/06/11 A Machiavellian model for Obama
• 11/03/11 The Herman Cain crack-up
• 11/01/11 Cain can --- he will survive
• 10/27/11 Stuntmen of the supercommittee
• 10/26/11 Democrats on the sidelines
• 10/24/11 Rick Perry's birther Parade
• 10/24/11 The birthers eat their own
• 10/19/11 The GOP's middle man
• 10/17/11 The waiting for nothing Congress
• 10/12/11 Sparsely occupied D.C.: Why the movement hasn't caught on
• 10/10/11 Can Obama strike an alliance with Occupy Wall Street?
• 10/06/11 Chris Christie, such a presidential tease
• 10/05/11 Obama and his foot soldiers go toe to toe
• 09/28/11 Cain could deliver
• 09/26/11 Republicans? Mr. Nice Guys?
• 09/22/11 Why Ron Paul is winning the GOP primary
• 09/21/11 I am a job creator who creates no jobs
• 09/20/11 Obama launches a revolution
• 09/19/11 Dems for Romney?
• 09/14/11 ‘Supercommittee’? More than stupor committee
• 09/07/11 Mitt Romney finds his (corporate) voice
• 09/01/11 The infallible Dick Cheney
• 08/31/11 This liberal says Perry is the ultimate conservative candidate
• 08/29/11 Wanted: More bite from Obama the Great Nibbler
• 08/10/11 How Rep. Austin Scott betrayed his Tea Party roots
• 08/09/11 The most powerful man on Earth?
• 08/08/11 The FAA shutdown and the new rules of Washington
• 08/04/11 Lt. Col. Allen West fires a round at the Tea Party
• 08/03/11 Government on autopilot
• 08/02/11 Dems mourn debt deal like death
• 07/27/11 Life imitates sport
• 07/26/11 Obama and Boehner take on Washington
• 07/21/11 Why Americans are angry at Congress
• 07/20/11 The new party of Reagan
• 07/18/11 Rob Portman, the boring Midwesterner who could bring sanity to the debt debate
• 07/13/11 John Boehner's bind
• 07/04/11 Stephen Colbert, Karl Rove and the mockery of campaign finance
• 07/01/11 President Puts Up His Dukes, As He Ought To
• 06/28/11 Rod Blagojevich verdict: All shook up
• 06/27/11 Progressives voice their anger at Obama
• 06/24/11 Mission accomplished, Obama style
• 06/22/11 Jon Huntsman's first step toward oblivion
• 06/21/11 Scott Walker finds making bumper stickers is easier than creating jobs
• 06/20/11 A day of awkwardness with Mitt Romney
• 06/06/11 Hubris and humility: Sarah Palin and Robert Gates on tour
• 06/02/11 The Weiner roast
• 06/01/11 Congress clocks in to clock out
• 05/30/11 Hermanator II: No More Mr. Gadfly
• 05/24/11 How Obama has empowered Netanyahu
• 05/24/11 Pawlenty bends his truth-telling
• 05/20/11 Default deniers say it's all a hoax
• 05/18/11: Gingrich gives voice to moderation
• 05/17/11: Donald Trump and the House of Horrors
• 05/16/11: The medical mystery of Mitt Romney
• 05/12/11: The body impolitic: Schock photos should tempt lawmakers to cover up
• 05/10/11: Muskets in hand, tea party blasts House Republicans
• 05/09/11: The GOP debate: America -- and the party -- needs the grown-ups
• 05/05/11: Mitch Daniels, an alternative to scary
• 05/03/11: Obama's victory lap
• 05/02/11: How the journalist prom got out of control
• 04/28/11: Obama's birther day: Why did he lower himself by appearing in the briefing room?
• 04/27/11: Obama, lost in thought
• 04/24/11: Andrew Breitbart and the rifts on the right
• 04/22/11: Ten Commandments for 2012
• 04/21/11: Obama likes Facebook. Facebook likes Obama.
• 04/18/11: Without Nancy Pelosi, Obama is adrift
• 04/15/11: If progressives ran the world
• 04/14/11: Faith in political apostasy
• 04/13/11: One man's revolution is another's political expediency
• 04/11/11: Shutdown theatrics
• 04/06/11: Paul Ryan's irresponsible budget
• 04/05/11: Robots in Congress? Yes, we replicant!
• 04/04/11: Robert Gibbs, Facebook and the White House corporate placement service
• 04/01/11: Haley Barbour, the fat cats' candidate
• 03/31/11: Republican freshmen in House shut down compromise, and possibly the government
• 03/30/11: Coburn and Durbin, the dynamic duo of the debt crisis
• 03/28/11: The Obama doctrine: A gray area the size of Libya
• 03/24/11: Dems as Weiners
• 03/23/11: Obama's quick trip from tyrant to weakling
• 03/17/11: Who's afraid of Elizabeth Warren?
• 03/15/11: The underwear flap over Bradley Manning
• 03/10/11: In Senate's debt debate, talk isn't cheap
• 03/09/11: With Obama's new Gitmo policy, Administration officials had some 'splainin to do
• 03/02/11: Issa press aide scandal is like bad reality TV
• 02/25/11: Jay Carney: Mouthpiece for an inscrutable White House
• 02/14/11: The Donald trumps the pols at CPAC
• 02/09/11: Arianna Huffington's ideological transformation
© 2011, Washington Post Writers Group
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