Trump and Clinton share Delaware tax 'loophole' address (xpost from GD:P)
(filed under: Tax Avoidance)
There arent many things upon which Hillary Clinton and Donald Trump agree, especially as they court very different Delaware voters ahead of a primary on Tuesday. But the candidates for president share an affinity for the same nondescript two-storey office building in Wilmington. A building that has become famous for helping tens of thousands of companies avoid hundreds of millions of dollars in tax through the so-called Delaware loophole.
(snip)
The loophole is said to have cost other states more than $9bn in lost taxes over the past decade and led to Delaware to be described as one of the worlds biggest havens for tax avoidance and evasion.
But its not just big corporations that have chosen to make 1209 North Orange their official home. Both the leading candidates for president Hillary Clinton and Donald Trump have companies registered at 1209 North Orange, and have refused to explain why.
Clinton, who has repeatedly promised that as president she will crack down on outrageous tax havens and loopholes that super-rich people across the world are exploiting in Panama and elsewhere, collected more than $16m in public speaking fees and book royalties in 2014 through the doors of 1209, according to the Clintons tax return.
Just eight days after stepping down as secretary of state in February 2013, Clinton registered ZFS Holdings LLC at CTCs offices. Bill Clinton set up WJC LLC, a vehicle to collect his consultation fees, at the same address in 2008.
(more at the link)
Orsino
(37,428 posts)COLGATE4
(14,732 posts)you are aware that Delaware is the 'corporate capital' of the US because its laws favor the creation of all types of business entities, including corporations. That means that it is faster, cheaper and, most importantly smarter to incorporate in Delaware than in other states. It is smarter because Delaware courts have a well develop body of case law which leads to less confusion than other states. It's certainly not surprising that law firms that specialize in corporate formation have clients in common, and there's nothing nefarious about it. And, finally (and hopefully for the last time) the business organizations the Clintons have in Delaware are not corporations. They are Limited Liability Companies (LLC) which do not provide any benefit regarding taxes. Income from an LLC is treated as direct income to the LLC's owner(s) so any money paid to the LLC for speaking fees will be treated exactly as if they cut the check directly to Bill or Hillary. No tax savings, no tax benefit, no tax dodge.
TexasMommaWithAHat
(3,212 posts)instead of Clinton declaring her speaking fees as personal income on her income taxes?
KPN
(15,646 posts)COLGATE4
(14,732 posts)exposed to lawsuits.