Caught Not Paying His Taxes, Top Tax Legislator Writes A Check

File under: Balls, Hypocrisy.

Rep. Charles Rangel(D-NY) wrote six checks for about $10,800 in back taxes, and then penned an open letter to New Yorkers Friday, saying he has done nothing dishonorable, AP reports.

The federal government tab ended up being $4,803, according to Rangel's accountants, while he wrote checks totaling $6,022 to New York State. The state figure includes a small percentage owed to the New York City authorities.

Penalties and interest were not included in those payments, said his chief of staff, George Dalley.

"If the IRS chooses to impose them, of course he'll readily pay them," said Dalley.

Rangel is chairman of the tax-writing Ways and Means Committee.

-Robert Wenzel

Tax Evader Will Remain Top Tax Legislator

Representative Charles B. Rangel will not step down from the chairmanship of the House Ways and Means Committee.

Rangel’s lawyer, Lanny Davis, told reporters during a conference call today that the House speaker, Nancy Pelosi, supports his decision to remain in the chairmanship.

Davis added: “Mr. Rangel believes, I believe and his colleagues believe that making inadvertent errors with no intention to conceal, no personal enrichment and no corruption of the public trust, is not disqualifying. He is prepared to let his constituents make the final judgment on his fitness to serve. Whatever the facts are, he has not dishonored the House, he has not dishonored himself he has not done anything intentionally wrong.”

Rangel (D-NY) has admitted that he earned more than $75,000 of income from a Dominican Republic villa, after the New York Post reported the details in an exclusive report. He did not report the income to the IRS or on Congressional disclosure forms.

Rangel acknowledged on Monday that there were even more errors and omissions on his financial disclosure forms, and said he would hire a forensic accounting company to pore over his records.

He is currently under investigation by the House Ethics Committee with regard to the matter.

The House Ways and Means Committee writes all Federal tax code.

-EPJ Newsdesk

Hedge Fund Industry Behind Congressman Rangel's Troubles

After 38 years in the U.S. House of Representatives, suddenly Congressman Charlie Rangel wakes up to almost a hit piece a week in New York City newspapers.

In July, the New York Times reported on Rangel's four rent controlled apartments. In August, the New York Post first reported on Rangel's "beachfront villa in a sun-drenched Dominican Republic resort." Yesterday, NyPo followed up with another attack on his failure to report income from the villa. Then there was the report of Rangel using his official congressional stationary to solicit money from constituents for a Columbia University Center to encourage minority participation in government.  

This stuff the papers are focusing on is all in a days work for a ranking congressman. It is generally, impossible to get newspapers to feature stories about it. But, as  the second scandal broke, we wrote, "Somebody is out to get...Ways and Means Committee chairman, Congressman Charlie Rangel....Reports like this don't come out by accident. Somebody that is very powerful is after Rangel."

The Ways and Means committe chair has always been a hot seat.

Rep. Wilbur Mills (1957-1974) was removed via a set-up affair with a stripper, Fannie Fox; Rep. Dan Rostenkowski (1981-1994) was forced out in a concocted House Post Office scandal, and President William McKinley, who was assassinated in 1901, had previously been Chair of the Ways and Means Committee.

Now it's Rangel's turn. Who is powerful enough and has the money to sponsor and fund the takedown this time?

Wall Street friends tell us that it is the hedge fund and private equity industries.

The hedge fund and private equity industries have targeted Rangel because of his legislation in the House that would have taxed the earnings of hedge fund and PE managers at a 35% income tax rate, instead of the current capital gains rate they pay of 15%. Rangel's legislation for a tax increase on the fund managers passed the House 233-189, but it was blocked in the Senate.

Now it's pay back time for Rangel, who also has been makng noise about reinstituting the draft.

One Wall Street insider said to me, "This is almost as much fun as taking out Eliot Spitzer."

Top Tax Writer Dodges Taxes

U.S. Congressman Charlie Rangel (D-NY)may lose his position as head of the powerful House Ways and Means committee following news that he failed to report income on a Dominican resort property he occasionally rented out.

His lawyer, Lanny Davis, said that Rangle didn't declare about $75,000 in rental income from his villa with panoramic ocean views at the Punta Cana Yacht Club.

Rangel will apparently use the "my wife was in charge of finances" defense.

Davis told NyPo that Rangel thought he didn't have to declare the income for a variety of reasons, including that his wife, Alma, handled their finances, so he never saw the sporadic statements.

Since the House Ways and Means Committee writes tax law, for the head of the committee to fail to report all his income, is a bit akward for the committee. The write all the tax laws you want, but never report the income philosophy is causing Republicans to take notice.

"Charlie Rangel is the designated leader on tax policy in the Democrat-led Congress, but while he is authoring massive tax hikes to exact on middle-class Americans, he is apparently dodging the IRS at all costs," said Ken Spain, spokesman for the National Republican Congressional Committee.

Rangel: They Got Me

Rep. Charles Rangel (D) of New York who is chairman of the powerful House Ways and Means Committee admitted that he earned more than $75,000 of undeclared income from a Dominican Republic villa, after NyPo reported the possibility in an exclusive report earlier this week.

Someone has been sniping at Rangel, as only weeks ago the New York Times detailed the four rent controlled apartments he rents at far below market prices.

Rangel has owned the villa at the Punta Cana Yacht Club for 20 years, yet only sporadically declared income to Congress, and never reported it on his federal or state tax returns, his lawyer said, according to NyPo.

Rangel's lawyer says disclosure forms will be refiled for a number of years. Filing a false disclosure form can result in civil penalties and a possible five-year prison sentence.

Rangel is 78 years old.

Somebody Is Out To Get Charlie Rangel

Somebody is out to get powerful Ways and Means Committee chairman, Congressman Charlie Rangel.

In July, the New York Times reported on Rangel's four rent controlled apartments:

While aggressive evictions are reducing the number of rent-stabilized apartments in New York, Representative Charles B. Rangel is enjoying four of them, including three adjacent units on the 16th floor overlooking Upper Manhattan in a building owned by one of New York’s premier real estate developers.

Today's New York Post reports on Rangel's "beachfront villa in a sun-drenched Dominican Republic resort.":

While the villa was rented to paying guests for the past two years, for instance, Rangel reported no income from it in 2006 and 2007, The Post has learned. As a congressman, failure to fully list all income and investments can result in civil penalties or criminal charges.

Reports like this don't come out by accident. Somebody that is very powerful is after Rangel.

NY Rep Rangel Has Four Rent Controlled Apartments At Bargain Rates

The New York Times just issued this breaking news alert:

Breaking News Alert
The New York Times
Thursday, July 10, 2008 -- 7:06 PM ET
-----

Representative Rangel Rents 4 Apartments at Bargain Rates

While aggressive evictions are making rent-stabilized
apartments increasingly scarce in New York, Representative
Charles B. Rangel is enjoying four of them, including three
adjacent apartments in a sprawling penthouse overlooking
Upper Manhattan, courtesy of one of New York's premier real
estate developers.

Mr. Rangel, the powerful Democrat who is chairman of the
House Ways and Means Committee, uses his fourth apartment,
six floors below, as a campaign office, despite state and
city regulations that require rent-stabilized apartments to
be used as a primary residence.

Read More:
http://www.nytimes.com/?emc=na

This is what happens when you put any part of the economy under control, the powerful are able to take advantage, when others are thrown out on their butts.