Rep. Grace F. Napolitano (D-Norwalk CA) collected at least $158,000 in interest to HERSELF !!!

LA Times ^ | 14 Feb 2009 | By Andrew Zajac

[davidosborne]

lol.. very interesting indeed... COLLINS, SNOWE & SPECTOR would be at the TOP of the list... not sure what they were paid for their treasonous vote on porklus but we will soon find out..

[saganite]

Sounds like credit card territory to me. At those interest rates and having never retired the debt her campaign will eventually pay back many times the principal. Since she runs her campaign fund and can say whether or not the principal should be retired it’s a scam. Sweet deal if you can arrange it but you would have to be a Dem to get away with it if you get caught.

[Bernard]

A former office worker at Ford Motor company now has a personal wealth that allows her to loan money to her political campaign fund and earn $158,000 in interest; how many people reading this comment can say they have the financial ability to do that?

And the newspaper should close the loop; as long as she was charging herself interest, was she declaring the income and paying federal income tax on it?

[Vaduz]

And people say Chicago doesn’t have a west side (capone smiles)

[csvset]

Guilty!

[SpinyNorman]

Probably built herself a dacha somewhere in Malibu...

[Marine_Uncle]

Yes I can hear them say that.

[Christian4Bush]

Can you hear the Democrats saying “move along - nothing to see hear —”

It's like that Congressman said the other day, regarding media coverage: "Let's talk about the 'elephant' in the room...and the 'donkey' that isn't..."

[Timeout]

She doesn’t have to report it as income as her campaign owes the money.

It doesn't matter who OWES the money. It's who RECEIVES it that determines taxation.

It's an interesting question, though. The "donors" are giving money to her campaign. She is then, in essence, using the money to pay herself. Does the campaign contribution angle allow her to enrich herself tax free? I honestly don't know. But it seems like it should be taxable in that SHE is the personal owner of the account that benefits.

[Timeout]

Actually, let’s look at it in a simpler light.

Suppose the money had not come from a tax-deferred account. Instead, let’s say she simply leant the money to the campaign out of her bank account. She charges interest. And she uses campaign funds to repay herself.

It seems to me there can be no doubt whatsoever that the interest income to her would be taxable. Why would it be different just because she’s using a tax-deferred account? Since others (whether donors or the campaign) gave her the money to make the interest payments, there’s no question in my mind it would be taxable.

[kAcknor]

Close, but you forgot a step or two..

STEP 1 : create my own bank

STEP 2 : Loan myself $100,000 to pay off my mortgage (cash the check, spend it fast)

STEP 3 : Pay myself interest on the loan

STEP 4 : Convince others to pay off the loan for you

There. Now it works like you were a Democrat!

[Jimmy Valentine's brother]

Checkout Hot Air for further clarification

[Timeout]

You STILL forgot a step:

STEP 1 : create my own bank

STEP 2 : Loan myself $100,000 to pay off my mortgage (cash the check, spend it fast)

STEP 3 : Pay myself interest on the loan

STEP 4 : Convince others to pay off the loan for you

STEP FIVE: Rely on fellow Dems in Congress, the Justice Department, the FEC and the IRS to turn a blind eye.

[Timeout]

I had read Cap’n Ed’s post before I came over here.

The point is that the interest income belongs to her PERSONALLY, not the campaign. Therefore, she should pay taxes on it.

I can’t see any way around it.

[Coleus]

hopefully, her campaign contributors will wake up, but then again, if they are special-interest groups who benefit from her legislation, they won't care at all.

[Lizavetta]

Hey, she looks like the popcorn dude Orville Reddenbocker. Can you put some glasses on her?

[okie01]

Grace is married to Frank Napolitano, retired restaurateur and community activist.

Why is it that "community activist" and "corrupt" are synonyms?

[Roscoe Karns]

Hey, the Wolfman called. He wants his hair back.

[kAcknor]

STEP FIVE: Rely on fellow Dems in Congress, the Justice Department, the FEC and the IRS to turn a blind eye.

Can't disagree with the fact, but is it really a conscious step that needs to be taken or simply and everyday expectation from corrupt officials? ;)

[wku man]

Norwalk, Commiefornia, eh? So could she be considered the "Norwalk virus"?

Scouts Out! Cavalry Ho!