Obama Administration Inconsistent on Jack Lew and Tax Shelters
The Cayman Islands have developed a reputation as a jurisdiction that is business-friendly to the point of being a tax haven. Tens of thousands of corporations list their address (or one of them) as the Ugland House in the Caymans. In 2009, President Obama said that Ugland House “is [either] the largest building in the world or the largest tax scam in the world.” In addition, the Obama campaign in 2012 criticized Mitt Romney as holding millions in the Cayman Islands, among other tax havens.
Interestingly, the recently confirmed Secretary of the Treasury, Jack Lew, invested $56,000 (much less than Romney’s investments) in a private equity fund while he was employed by Citigroup. The fund, Citigroup Venture Capital International, was based in the Caymans and used the Ugland House as its address. Several websites have pointed out the inconsistency of the Obama administration in criticizing Mitt Romney for investments in the Caymans while not holding its own Secretary of the Treasury to the same standard.