Democrat Charles Rangel (NY), chairman of the very powerful House Ways and Means Committee — the committee that writes the federal tax code — has failed to report rental income from his offshore beachfront villa on his federal, state, and city tax returns.

The villa Rangel owns is located at a resort in the Dominican Republic. He’s owned it since 1988, but rented it out for five years for $75,000, which he failed to report to the IRS, and the state and city of New York. His attorney, Lanny Davis, said initially no back taxes would be owed to the IRS, only New York State and New York City. However, after further review, it has been determined that Rangel does indeed owe money to the IRS.

The average worker knows that rental income is reportable and would indeed be taxed. So it’s difficult to comprehend that a congressman, one who helps write this country’s tax code no less, and who has an army of personal attorneys and accountants to oversee and handle these things, would be “ignorant” of the law and fail to report the income.

Davis insists that the mistake was inadvertent and that only a “modest amount” would be owed to the IRS. But “modest amount” is a relative term; probably “inadvertent” is now also a relative term. What is modest to a Congressman who earns a very comfortable salary, not to mention his other investments and incomes — which by the way for Charles Rangel are also under considerable public, legal and ethical scrutiny — is a pretty hefty sum to working class Americans.

The $75,000 would be taxed by at least 25 percent, but more probably at 35 percent, given Rangel’s personal tax bracket. At 25 percent he would owe $18,750 in back taxes; at 35 percent $26,250. Adding on interest and penalties according to some tax preparers would at least double those figures. Then, one would have to figure in the New York state and city taxes; even for a congressman the sum is no longer a “modest amount.”

Perhaps for Council on Foreign Relations (CFR) member Rangel, there will be no interest or penalties from the IRS — and perhaps not even a slap on the wrist. The elitists generally take care of their own.

Probably the worst fallout for “let’s reinstate the draft” Rangel from all of this is the call by Republicans that he be removed as chairman of the House Ways and Means Committee. Because of Rangel’s previous ethical and financial lapses — a New York developer allowed him to lease four rent-stabilized apartments at below market value, a violation of state requirements, plus the thousands in rent savings that violated the $100 gift limit; the resort owner in the Dominican Republic waived the interest on the mortgage for a decade; and his use of official stationery to solicit donations for an educational center at New York City University — he was already fingered by Republican leaders to be removed from his chairmanship before this latest tax problem surfaced. House Minority leader John Boehner (R-Ohio) proffered a House resolution that would have censured Rangel in July, but it was blocked by Democrats.

Boehner now has noted that because of this increasing accumulation of ethical concerns, Rangel can no longer “effectively carry out his duties as chairman.” He sent a letter to House speaker Nancy Pelosi saying as much and calling for an investigation into the matter and the dismissal of Rangel as chairman. 

Pelosi’s spokesman Brendan Daly fired back, “The American people would be better served if Republicans would stop playing politics and allow the bipartisan ethics committee to do its job.”  Of course the only way the American people would be “better served,” is by removing from all positions and offices those corrupt officials who act as though they are above the law.

Pelosi’s statement via Daly reeks of protectionism, and it is she who is diverting attention away from truth and justice. And it will probably be Pelosi in the end who saves Rangel from any consequences he should be subjected to.

Daly went on to blame the Republican party for its “culture of corruption,” and said the letter to Pelosi “demonstrates that Republican leaders have no confidence in their members serving on the ethics committee.” But Daly should know there are five democrats and five republicans on the ethics committee, and on this issue will most likely be divided right down party lines, creating an impassable stalemate.

Seems that the whole lot of them are corrupt and the rascals all need to be thrown out.
 

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