December 11, 2008
Rangel Investigated On Off-Shore Tax Loophole
Charles Rangel, the chariman of the House Ways and Means Committee, helped preserve a lucrative off-shore tax loophole for an oil drilling executive. This issue has prompted the House ethics committe to expand the inquiry on the matter.
Rangel is a powerful New York Democrat who insists the charges are false. But is it just coincidence that the businessman linked to the scandal pledged $1 million for a planned Charles B. Rangel Center for Public Service at the City College of New York?
Beyond suspicions about the offshore tax loophole worth tens of millions, the panel must look into Mr. Rangel’s use of congressional letterhead to solicit support for his eponymous center. Then there’s his use of rent-stabilized apartments in Harlem at cut rates and his failure to pay taxes and disclose $75,000 in income from a Dominican villa on which he enjoyed an interest-free mortgage.
The ramifications are great. It could lead to Rangel giving up his chairmanship while the investigation proceeds. House speaker Nancy Pelosi is in a tough position – she needs to act on the matter on this Democratic party member. She needs to urge Rangel to step down. If he doesn’t, she needs to remove him.
Ethics violations by a public servant in such a high position cannot be tolerated. His power in making decisions regarding huge fiscal and tax issues means there can be no doubts about the leadership’s priorities.
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