http://www.nytimes.com/2008/11/25/nyregion/25rangel.html
The Congressman, the Donor and the Tax Break
New York Times, The (NY) - Tuesday, November 25, 2008
Author: DAVID KOCIENIEWSKI
Abstract: Questions emerge about Rep Charles B Rangel’s efforts to help raise $11 million for City College of New York’s Charles B Rangel School of Public Service, but he insists he has kept his attempts to attract donors scrupulously separate from his Congressional duties; records and interviews show Rangel was instrumental in preserving lucrative tax loophole that benefited oil -drilling firm Nabors Industries, while its chief executive Eugene M Isenberg was pledging $1 million to project; Rangel says pledge played no part in decision to protect loophole; House ethics committee is investigating, along with other issues about his fund-raising and personal finances; chronology; photos (L)
e of New York school of public service to be named in his honor. In recent months, as questions have emerged about his fund-raising, he has insisted that he has kept his efforts to attract donors scrupulously separate from his official duties in Congress.
But Congressional records and interviews show that Mr. Rangel was instrumental in preserving a lucrative tax loophole that benefited an oil -drilling company last year, while at the same time its chief executive was pledging $1 million to the project, the Charles B. Rangel School of Public Service at C.C.N.Y.
The company, Nabors Industries, was one of four corporations based in the United States that were widely criticized in 2002 and 2003 for opening offices in the Caribbean to reduce their federal tax payments. Mr. Rangel was among dozens of representatives from both parties who bitterly opposed those offshore moves and, in 2004, pushed unsuccessfully for legislation to make the companies pay more tax.
But in 2007, when the United States Senate tried to crack down on the companies, Mr. Rangel, who had recently been sworn in as House Ways and Means chairman, fought to protect them. The tax shelter for the four companies was preserved, saving Nabors an estimated tens of millions of dollars annually and depriving the federal treasury of $1.1 billion in revenues over a decade, according to a Congressional analysis by the nonpartisan Joint Committee on Taxation.
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Money quotes:
“On Feb. 12, the day the bill was being marked up by the committee he leads, Mr. Rangel held two discussions at the Carlyle Hotel in Manhattan. First, the congressman sat down for breakfast with Mr. Isenberg and Mr. Morgenthau to further talk about Mr. Isenberg’s support for the Rangel center, Mr. Morgenthau said. Mr. Isenberg said that after breakfast, he escorted Mr. Rangel across the room, where the lobbyist for Nabors, Kenneth J. Kies, was waiting.
Over sweet rolls and coffee, Mr. Kies asked Mr. Rangel if he would maintain his opposition to the efforts to take away the company’s loophole. Mr. Rangel said he would, Mr. Kies and Mr. Isenberg said in interviews.
“His position against retroactive taxes was well-known,” Mr. Kies said, “so it wasn’t hard to sell at all.”
Mr. Rangel does not recall meeting with Mr. Kies that day, according to his lawyer, Ms. Kiernan.
Mr. Isenberg said that he was not asked explicitly about his financial donations to City College at either meeting, and that the congressman’s chat with the lobbyist lasted eight minutes, and only three were spent on the tax loophole.
Eleven days later, a check for $100,000 from Mr. Isenberg was cashed by City College. Mr. Isenberg said that the check was dated Feb. 7, but that he was not certain when he gave it to the school, and college officials declined to comment.”
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8 minutes? LOL..what? 3 minutes to talk about the pay off...3 minutes to talk about the cover -up and 2 minutes to write the check?
This man should be in an orange jumpsuit.Thanks for the links. It is hard to keep up with the Democrat Culture Of Corruption these days.