ROAD TO THE WHITE HOUSE

Clinton, Trump Benefit From Delaware Tax Loophole

The state is known as a haven for tax evasion.

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Ally Mutnick
April 26, 2016, 9:36 a.m.

Former Sec­ret­ary of State Hil­lary Clin­ton (D) and real es­tate mogul Don­ald Trump (R) are both par­ti­cipants in a strange tax loop­hole in Delaware that’s “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 world’s biggest havens for tax avoid­ance and eva­sion’”.

“Of­fi­cially, 1209 North Or­ange is home to Apple, Amer­ic­an Air­lines, Coca-Cola, Wal­mart. … Be­ing re­gistered in Delaware lets com­pan­ies take ad­vant­age of strict cor­por­ate secrecy rules, busi­ness-friendly courts and the ‘Delaware loop­hole,’ which can al­low com­pan­ies to leg­ally shift earn­ings from oth­er states to Delaware, where they are not taxed on non-phys­ic­al in­comes gen­er­ated out­side of the state.”

“Hil­lary Clin­ton and Don­ald Trump — have com­pan­ies re­gistered at 1209 North Or­ange, and have re­fused to ex­plain why.”

A spokes­man for Clin­ton said her hold­ings there were “an en­tity to man­age her book and speak­ing in­come. No fed­er­al, state, or loc­al taxes were saved by the Clin­tons as a res­ult of this struc­ture.”

“Of the 515 com­pan­ies on Trump’s of­fi­cial Fed­er­al Elec­tion Com­mis­sion (FEC) fil­ing, 378 are re­gistered in Delaware, he re­vealed, after be­ing ques­tioned by the Guard­i­an about why so many of his New York-based com­pan­ies are in­cor­por­ated in Delaware.” (The Guard­i­an)

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