Thursday, April 22, 2010

Bloomberg: "Only the little people pay taxes!"

From the NY Observer:

According to an extensive review of the mayor’s financial records by The Observer, even as Mr. Bloomberg was trying to counter the loss of taxes and other income from the richest New Yorkers, the foundation he controls was in the process of shuttling hundreds of millions of dollars out of the city and into controversial offshore tax havens that would produce nothing at all for the city in terms of tax revenue.

By the end of 2008, the Bloomberg Family Foundation had transferred almost $300 million into various offshore destinations—some of them notorious tax-dodge hideouts. The Caymans and Cyprus. Bermuda and Brazil. Even Mauritius, a speck of an island in the Indian Ocean, off the coast of Madagascar. Other investments were spread around disparate locations, from Japan to Luxembourg to Romania.

Why was the mayor’s flagship foundation sending hundreds of millions of dollars offshore? Neither the charity nor the mayor will explain. What is clear is that the issue could get prickly for Mr. Bloomberg, in part because his investment strategies have been so closely associated with Steve Rattner, the onetime boy wonder financier who remains under investigation by Attorney General Andrew Cuomo for his involvement in a state pension controversy. Last week, Mr. Rattner’s former firm, Quadrangle Group, took the extraordinary step of excommunicating him, saying in a statement that it “wholly disavow[ed]” Mr. Rattner over his role in securing state pension contracts—conduct the company called “inappropriate, wrong, and unethical.”

On December 26, 2007—the same day that the city’s Conflicts of Interest Board opened the door for Mr. Rattner’s firm to manage the foundation’s money— the foundation immediately sent $210 million to a new fund—“QAM Select Investors (Offshore) Ltd.”—based in the Cayman Islands.

A month later, the foundation was given clearance to allow two city workers to use municipal time and resources on foundation work—on the assumption that the charity would “ultimately serve the city” and “further the interests and purposes of the city.”

And what of the benefit that was supposed to come New York’s way as a result of all of these millions? Mr. Bloomberg donated more than $1.8 billion to the foundation in its first three years of life, according to the foundation’s tax filings. About $67 million—$36 million in 2007 and $31 million in 2008—was given away. Much of it went to anti-smoking initiatives, including the World Lung Federation and an Indian anti-smoking group; other grants went to the government of Vietnam and the World Health Organization, for injury-prevention efforts. No grants went to organizations directly benefiting New York City.

10 comments:

Anonymous said...

Illegal immigrants are ok. We are going after trans fats and salt. Maybe phosphates later. Then maybe glycerides and other things.

Not long before we are in front of a govt truck handing us crap. For the laughers - you can make NO logical reason why we shouldnt based on your reasoning).

Anonymous said...

Bloomberg prefers paying his taxes in Bermuda, I would too if I had his bucks. But he is mayor here and I suppose that a criminal complaint proving he is a resident of NYC would force him to disclose his income on a combined NYS tax return like any of us idiots who don't don't have choice of living in Bermuda.

Anonymous said...

It's interesting how the NY Observer scooped all the other daily papers with this story.

While The Times was busy with the doorman strike threat, and elimination of bar cars on the Metro North, the salmon-colored Observer has the story that truly matters.

Anonymous said...

Where is the post and Daily News with the follow up?

Channel 2 or 4?

Anonymous said...

Didn't someone once say IMPEACH?

Snake Plissskin said...

Can anyone comment on the character of off-shore financial types

that seem to be not only Bloomturd's neighbors, but with whom he shares imporant traits?

Anonymous said...

What's with these greedy corrupt bastards named Ratner and/or Rattner? Has anyone ever seen these two guys in the same photo?

Anonymous said...

Where is the post and Daily News with the follow up?


Forget those rag sheets. The Daily News is an advocate of Mayor Moneybags. Just read their editorials. It's all about pro-mayor; pro development, etc.

Anonymous said...

Mayor Moneybags only cares about money. He doesn't care about people. His solution is to develop the city so more people move in and he can collect more taxes. That's his mantra. Doesn't care if they are legal or illegal. He prefers illegals. Meanwhile, he has no trouble building his personal fortune and making his developer friends richer. Why can't he treat taxpayer dollars like he treats his investments. He grows richer by the day. I think New York needs a mayor who will see life through the eyes of the average Joe -- someone who works hard and wants to live within their means and not be crowded into this once beautiful city. I can't believe he is still in office. He went against the will of the people and really doesn't care about laws. When he doesn't like something, he throws money at it. The media has been bought off by the Bloomberg Administration. We need to start over and revamp our government from the bottom up. Pay officials an average salary -- not a six-figured one. Let the politicians learn to live within their means, just like the common folk.

Anonymous said...

Can anyone smell a FOURTH TERM coming or is it just me?