The rich are different from you and me. They have Swiss bank accounts.
Well, at least Mitt Romney does.
That was one of the big revelations when Romney released his tax records in January -- a revelation that Vanity Fair recently looked into, along with the rest of his finances. Of course, it's no secret that Mr. Romney is a man of means. But what is still secret is just how Romney has invested those means.
Maybe not so much secret as secretive. Romney has released his return for 2010 and an estimate for 2011. So we have a broad outline of what his personal finances look like. And they look something like an Epcot of financial investments: There is a blind trust with offshore accounts in Switzerland, Bermuda, and the Cayman Islands -- not to mention an almost comically large IRA account. None of this is illegal. But it has raised questions about Romney's Caribbean tax havens and his Swiss bank account. The former makes sense. The latter not as much.
Question #1: Remind me: Why does Romney have money in the Caribbean?
Let's take a quick detour. Imagine that a tax-exempt entity -- like a university endowment -- buys or otherwise acquires a business. Maybe a macaroni company. That company would have a nice little competitive edge. It wouldn't have to pay taxes. That's exactly what happened when some wealthy alums donated the Mueller Macaroni Company to the New York University Law School in 1948. This loophole prompted Congress to close it 1950. Only a tax-exempt entity's "related" businesses would in fact be tax exempt. Everything else would be taxed as "unrelated business income".
What does this have to do with Mitt Romney? Well, university endowments and public pensions are some of the biggest investors in private equity funds like Romney's Bain Capital. Those investors don't want to be hit with the unrelated business tax -- so Bain Capital sets up shop in the Caymans where it can avoid the unrelated business income tax. You might still be wondering: What does this have to do with Mitt Romney -- at least now? He left Bain Capital in 1999 (or 2001). He did, but he didn't. He still gets a share of Bain Capital's profits every year as part of his retirement package. And Bain still has corporate blockers in the Caymans. That's why Romney has investment income from the Caymans.
Question #2: Why does Romney have a Swiss bank account? And what's so great about a Swiss bank account versus any other tax haven?
Swiss banks are the gold standard of tax havens because of their secrecy and stability. Actually, that sentence should be in the past tense. Swiss banks are not nearly as secret as they used to be. Time was, the Swiss government jealously guarded its banks' reputation for never revealing client information. It was a crime to do so. High-net individuals the world over flocked to the Alps to hide money from tax collectors back home. But that started to change in 2008. A former UBS banker came forward with tales of how he helped wealthy American clients evade taxes -- including such charming details as smuggling diamonds in tubes of toothpaste. The IRS launched an investigation, and came up with a list of 52,000 names it wanted from the Swiss banking giant. A settlement followed, and then a new U.S. law. Now foreign banks have to cooperate with the IRS or face fairly tough penalties. Auf Wiedersehen, Swiss banking secrecy über alles.
But Swiss banks still have plenty going for them. They can thank the Swiss franc for that. It's a safe-haven currency -- and that makes their banks safe havens too. The Swiss are famous for their fiscal prudence and low inflation, which makes their currency particularly strong. That's even more true now thanks to the euro crisis. Demand for Swiss francs is so great that the Swiss National Bank had to cap the value of their currency last year. It was getting so expensive that it threatened to push the Swiss economy into deflation.
The Romney camp has hinted that he only had a Swiss bank account because he wanted Swiss francs. In other words, he was hedging against the dollar declining in value. That's fair, even if it's a bit odd for someone with $250 million. But you don't need a Swiss bank account to get Swiss francs. You can just buy Swiss francs.
Another possibility is that Romney had the Swiss bank account to make it easier to wire money from one European investment to another. We can't say without seeing more tax returns. All we do know is his lawyer closed this Swiss bank account in 2010.
That's the final point. Mitt Romney's long-time lawyer, R. Bradford Malt, has managed Romney's personal finances since Romney was elected governor of Massachusetts. That's when Romney set up a blind trust, to avoid any possible conflicts of interest. Still, there are questions about just how blind the trust has been. And, besides, Romney is ultimately responsible for his own money.
Question #3: Is it fair for the Obama campaign to go after the Swiss bank account?
When most people hear the words "Swiss bank account" they think "tax evasion". That's not always fair. There are plenty of good reasons an American might have a Swiss bank account. Maybe they live abroad. Or work for a Swiss company. But those are good reasons that don't apply to Mitt Romney. He didn't live abroad. And he didn't work for a Swiss company.
That doesn't mean Mitt Romney was up to no good. There's no evidence of that. It's entirely possible that Romney really was just hedging against the dollar. That's the legitimate reason a very wealthy person would want a Swiss bank account. The not-so-legitimate reason is the secrecy -- to hide money from the IRS. It's unfair for the Obama campaign to insinuate Romney was doing the latter. But it'd be a lot more unfair if Romney was more transparent. We just don't know enough to say anything definitively. We don't know how long the account existed. We don't know whether Romney's lawyer or Romney himself set it up.
What we do know is that this kind of stuff doesn't seem weird to Romney. It's what the über-wealthy do. But it is weird to most everyone else. It's not what the 99 percent do. Actually, we know one more thing. Romney can end this controversy whenever he wants. He just has to release more tax records. He's running for office for Pete's sake. He should say something.
In other words, Romney should take a page from the Swiss. Even they're less secretive nowadays.
The Arizona senator delivered an impassioned critique of partisanship, haste, and win-at-all-costs legislation, just moments after casting a vote to debate a bill that exemplifies all three.
It was a day of contradictions for John McCain: Returning from his own sickbed, he flew into Washington to vote to open debate on a bill that could strip others of their coverage. Met with a standing ovation on the Senate floor, he was also denounced fiercely for his vote in favor of debate, which allowed the bill to move forward after Vice President Pence broke a 50-50 tie.
And then there was the speech he delivered immediately after the vote. It was a surreal moment: a stemwinder denouncing fight-for-every-inch gamesmanship, hasty procedures, closed-door wrangling, and legislation that puts partisan gain over helping citizens, delivered moments after McCain cast the deciding vote to forward a bill that embodied every one of those tendencies.
Why is President Trump badmouthing his attorney general, why doesn’t he just fire him, and what does he hope to accomplish by pushing him out?
Jefferson Beauregard Sessions III has spent much of his career making enemies. The Alabaman’s strident views have won him plenty of detractors, from civil-rights activists to fellow members of the Senate. But in Donald Trump, Sessions believed he had finally found a champion and fellow traveler. Instead, it seems Sessions has found his most formidable enemy yet.
Trump is now on his second consecutive day of publicly humiliating the attorney general on Twitter, following an interview with The New York Times last week in which he said he wished he’d never appointed Sessions. The attorney general’s decision to recuse himself from investigation into Russian interference in the election infuriated Trump, who has repeatedly tried to end the investigation, including by firing FBI Director James Comey. Instead, Comey’s firing resulted in the appointment of a special counsel to take the case. Here’s Trump’s latest broadside against Sessions:
The president addressed the quadrennial gathering like a campaign rally—talking to a group devoted to service as if it valued self-interest.
Donald Trump continued his ongoing tour of cherished American institutions on Monday night, delivering yet another jarringly partisan speech to an apolitical audience—this one, comprising tens of thousands still too young to vote.
During the campaign, his performance at the Al Smith dinner—where presidential candidates roast their rivals and themselves every four years—devolved into overt attacks on his opponent. Shortly after his election, he stunned CIA employees by delivering a campaign-style stump speech before the agency’s Memorial Wall. On Saturday, he surprised the crowd of uniformed personnel at the commissioning of the USS Gerald R. Ford by imploring them to lobby Congress in support of his agenda.
“I hope that my story will help you understand the methods of Russian operatives in Washington and how they use U.S. enablers to achieve major foreign policy goals without disclosing those interests,” Browder writes.
The financier Bill Browder has emerged as an unlikely central player in the ongoing investigation of Russian interference in the 2016 elections. Sergei Magnitsky, an attorney Browder hired to investigate official corruption, died in Russian custody in 2009. Congress subsequently imposed sanctions on the officials it held responsible for his death, passing the Magnitsky Act in 2012. Russian President Vladimir Putin’s government retaliated, among other ways, by suspending American adoptions of Russian children.
Natalia Veselnitskaya, the Russian lawyer who secured a meeting with Donald Trump Jr., Jared Kushner, and Paul Manafort, was engaged in a campaign for the repeal of the Magnitsky Act, and raised the subject of adoptions in that meeting. That’s put the spotlight back on Browder’s long campaign for Kremlin accountability, and against corruption—a campaign whose success has irritated Putin and those around him.
The internet’s favorite fact-checkers are caught in a messy dispute.
On Monday, the editorial staff of Snopes.com wrote a short plea for help. The post said that the site needed money to fund its operations because another company that Snopes had contracted with “continues to essentially hold the Snopes.com web site hostage.”
“Our legal team is fighting hard for us, but, having been cut off from all revenue, we are facing the prospect of having no financial means to continue operating the site and paying our staff (not to mention covering our legal fees) in the meanwhile,” the note continued.
It was a shocking message from a website that’s been around for more than 20 years—and that’s become a vital part of internet infrastructure in the #fakenews era. The site’s readers have responded. Already, more than $92,000 has been donated to a GoFundMe with a goal of $500,000.
The GOP voted to begin debate on repealing Obamacare, as several holdouts fell in line. What—if anything—the party can pass remains uncertain.
Updated on July 25 at 4:08 p.m. Eastern
Senate Republicans have voted to begin debate on legislation to dismantle the Affordable Care Act, clearing a key procedural hurdle even as it remains unclear what—if any—legislation the party might ultimately pass.
The vote was as narrow as it gets: With two Republicans out of their slim majority of 52 opposing Majority Leader Mitch McConnell’s motion to proceed on Tuesday afternoon, Vice President Mike Pence broke a 50-50 tie to formally launch deliberations that had taken place almost entirely in private for two months. The vote was briefly delayed as Senate officials removed protesters shouting “Kill the Bill! Kill the Bill!” from the balcony of the chamber.
Partly, it’s simple rage. Mueller threatens Trump. And when Trump sees someone as a threat, he tries to discredit and destroy them—conventional norms of propriety, decency and legality be damned.
But there’s another, more calculated, reason. Trump and his advisors may genuinely believe that firing Mueller is a smart move. And if you put morality aside, and see the question in nakedly political terms, they may be right.
The chances that Mueller will uncover something damning seem very high. Trump has already admitted to firing former FBI Director James Comey over the Russia investigation. Donald Trump Jr. has already admitted to welcoming the opportunity to get dirt on Hillary Clinton from people he believed were representatives of the Russian government. Even if Mueller doesn’t accuse anyone of a crime, he’s likely to paint a brutal picture. And that’s just on the question of election collusion and obstruction of justice. If Mueller uses Russia to segue into Trump’s business dealings, who knows what he might find. An all-star team of legal and financial sleuths, with unlimited time and money, and the ability to subpoena documents and people, have been let loose on the affairs of a man whose own autobiographer called him a “sociopath.” No wonder Trump is scared.
Without insurance, millions of Americans will find themselves in dire financial straits as they struggle to pay for medical services.
Senate Republicans are working to pass legislation scaling back government support for health coverage, with Majority Leader Mitch McConnell calling for a vote on Tuesday to begin debate on a bill whose precise contents remain unknown. “Every Republican running for office promised immediate relief from this disastrous law,” President Trump said on Monday, referring to Obamacare. “But so far, Senate Republicans have not done their job in ending the Obamacare nightmare.”
Even without more specifics on the details of the legislation, one thing is clear: The options under consideration would increase the number of uninsured by 15 to 30 million over the next 10 years, the Congressional Budget Office has estimated. A consequence of this will be not only a loss of access to medical services, but an increase in financial crises for millions of American families. Insurance, after all, is also a financial product, protecting people from economic ruin.
There is plenty of reason to be confident that if ISIS could reliably and easily make a dirty bomb, they would do so.
In the last three years, I have not spent much time wondering whether ISIS has access to radioactive material. I know they have had access, because I had a hand in getting it to them.
In 2005, while working for an air cargo company in Mosul, I delivered a large wooden box, marked for consignment to the University of Mosul. To fly it in, we needed a special plane, an Antonov-12, whose cargo hold was cavernous compared to our usual 727s and DC-8s. The box contained, according to its air waybill, radiological imaging equipment for the university’s teaching hospital. The next day, workers from the hospital met me at my office, and I gently forklifted the crate into their truck. The load seemed off-balance, and I winced when I heard a corner of the box splinter as we strapped it down. But they drove away, and unless that million-dollar piece of medical equipment fell off the back of the truck and ended up strewn across the road, it probably made it safely to the hospital, where it was captured by ISIS nine years later.
Ninni Holmqvist’s 2009 book “The Unit,” newly reissued, imagines a world in which people who haven’t procreated are forced to make a different—ultimate—contribution to society.
“It was more comfortable than I could have imagined,” is how The Unit begins, with Dorrit, a single, impoverished 50-year-old woman picked up from her home in a metallic red SUV and transported to a luxury facility constructed by the government for people just like her. Her new, two-room apartment is bright and spacious, “tastefully decorated,” inside a complex that includes a theater, art studios, a cinema, a library, and gourmet restaurants. For the first time, Dorrit is surrounded by likeminded people and included rather than ostracized. At the Second Reserve Bank Unit for biological material, she’s one among a community of people who couldn’t—or didn’t want to—have children.
The cost is that, for the remaining four or five years of her life, Dorrit will be subjected to medical testing and will donate her organs one by one until her final, fatal donation. The Unit’s author, the Swedish writer Ninni Holmqvist, has imagined a society fixated on capital, but in human form. Those who have children or who work in fields like teaching and healthcare are seen as enabling growth; the childless and creative types like Dorrit, a writer, are deemed “dispensable,” removed, and forced to make their own biological contributions. The unit itself is a fantasy of government welfare for aging citizens (it offers delicious meals, culture, and companionship), but with a particularly sharp twist.