However, these nice words seem to be pure rhetoric as, according to Bloomberg News, the Clintons have been using a legal but dodgy tax loophole that often helps multimillionaires to avoid paying their estate tax, a levy paid by a person who inherits money or property.
The scheme helped the couple to amass quite a fortune, hiding their wealth from the federal government’s tax collectors at the IRS. The scheme was a financial planning strategy to shift ownership of their houses to a private trust, and then to their daughter Chelsea, the Daily Mail writes. According to federal financial disclosures and local property records, the Clintons created residence trusts in 2010 and shifted ownership of their Westchester house in New York into them in 2011.
The moves ensure that any growth in the house’s value will occur outside their estate and that they can claim a discounted value for the home, which could save the Clintons hundreds of thousands in estate tax avoidance, Bloomberg explains. At the end of 2012, the Clintons were worth from $5.2 million to $25.5 million, according to financial disclosures that Hillary Clinton filed in 2013 as she was leaving her position as secretary of state.
The revelation could be quite a blow to Hillary’s 2016 presidential bid as Bill and Hillary Clinton have long supported an estate tax to prevent the US from being dominated by inherited wealth. Federal estate taxes currently apply only to amounts over $5.34 million. Mrs. Clinton proposed lowering that cap to $3.5 million. She also argued that the top tax rate, paid only by the super-wealthy, should increase from 40 to 45 percent.
The news also comes amid Clinton’s promo tour of her new book Hard Choices. “Voters may have a problem with a potential presidential candidate who spends a lot of time talking about the problems of the middle class while hobnobbing with the ‘rich and privileged'” experts say.
The Republican Party is already running a 30-second ad Tuesday on CNN during a broadcast town hall with Hillary Clinton. The ad puts her wealth into focus.
Source: Voice of Russia