All posts by CaliforniaAccountability

Uncategorized

Meg Whitman’s Rhetoric on Latinos Doesn’t Match Reality

In her quest for votes, California Republican gubernatorial candidate Meg Whitman is saying she’s a friend to Latinos.

“I want to involve Latinos in this campaign in a way that hasn’t been seen in Republican politics in a long time. It will be hard — it will not be easy. But it is a priority of mine and I’m very, very serious about it.” – Meg Whitman’s website

“I want Latinos to look at my whole record, around job creation… [Meg Whitman, as quoted in the Los Angeles Times, 2/24/10]

We took her up on it; and found that Whitman’s record as CEO of eBay tells a very different story.

 The San Jose Mercury News recently reviewed federal employment data for Silicon Valley technology companies.

And the report is telling.

From 2000 to 2005, Meg Whitman’s e-Bay hired 366 managers at its Silicon Valley offices.

And how many of these hires were Latino?

ZERO.

The Mercury News (2/14) reports:

“Take eBay, for example. While the San Jose company declined to make its executives available for an interview, or to share its most up-to-date employment information, eBay said it believes workplace diversity is crucial.

“But the numbers don't reflect that.

“As eBay's local work force swelled to accommodate the online retailer's growth between 2000 and 2005, eBay added 366 managers to its Silicon Valley offices.

“That net increase included just five additional black managers and no Hispanics.”

For Latinos, the record is clear. Meg Whitman’s rhetoric doesn’t match reality.

Uncategorized

Tell Meg Whitman: Send Pete Wilson Packing

Call Meg Whitman at (408) 400-3887 and tell her if she wants to be a Governor of all Californians she needs to fire Pete Wilson.

 

For many California Latinos, “Pete” is truly a four-letter word.

Remember “They Keep Coming”?

In 1994, Republican Pete Wilson used Proposition 187 to win re-election to the California Governor’s Office.

“In the gubernatorial race, Gov. Pete Wilson, a Republican whose re-election bid has been based in large part on his support for the initiative, put two new 187 television advertisements on the air today.” – B. Drummond Ayres, New York Times, 10/25/94

This extremist initiative sought to deny even the most basic public services – things like health care and education – to undocumented workers and their children.

“Proposition 187…would prohibit public education, social services and nonemergency public health care for illegal immigrants, who are already ineligible for most noneducational state benefits.” – Associated Press, 1/20/95

“The law… would have removed undocumented children from public schools and denied…health care to people who were living in the state illegally.” – Anthony York, Salon.com, 7/30/99

Wilson’s divisive, cynical campaign of fear-mongering and immigrant-bashing earned him a reputation as "a monster…a Frankenstein" and "the ultimate bogeyman" to California's Latinos.

“To many California Latinos, former California Gov. Pete Wilson is ‘a monster … a Frankenstein,’ says Latino leader Arturo Vargas. United Farm Workers President Arturo Rodriguez calls Wilson ‘the ultimate bogeyman’ for his advocacy of 1994's anti-immigration Proposition 187 that sealed his re-election.

“Analysts say Wilson's return – in name and policy – is bad news for Republicans hoping to reach out to Latino voters, who comprise 19 percent of the California electorate….

“…many Latinos older than 40 remember the fear and anger that Prop. 187 stirred in the community.” [Chronicle, 3/20]

“Go back to 1994, and look at the loss one after another of safe Republican seats. What do they have in common – growth of middle class Asian and Latino populations as these voters have moved to the suburbs and transformed formerly Republican areas into Democratic ones. That occurred in tandem with the last round of GOP immigrant bashing, 1994’s Proposition 187.” – Tony Quinn, Fox & Hounds Daily Blog, 3/23/10

“Proposition 187 was the beginning of the anti-immigrant brush fire that spread across the country between 1993 and 1996.” – Anthony York, Salon.com, 7/30/99

Fast forward to 2010. 

Now Republican Meg Whitman is running for Governor.

She claims to be a different kind of candidate and says she wants to reach out to Latinos. 

“In November, [Meg] Whitman…promised ‘to involve Latinos in this campaign in a way that hasn't been seen in Republican politics in some time.’’ – San Francisco Chronicle, 3/20/10]

“… I’m reaching out to Latinos, I want Latinos to be part of this campaign…” – Meg Whitman, as quoted in the Los Angeles Times, 2/24/10

But who did she choose as her campaign chairman?  Pete Wilson

Wilson stands by Proposition 187, even though it was ruled unconstitutional by the courts.

“The long court fight over Proposition 187, which sought to bar illegal immigrants from receiving public benefits and services, was ended Monday by the federal judge who first found most of the initiative unconstitutional…” – Associated Press, 9/14/99

Pete Wilson made no apologies in 2002…

“Republicans are still apologizing to Hispanics for Pete Wilson's immigration policies. Mr. Wilson himself, however, offers no apologies.” – John Harwood, Wall Street Journal, 5/3/02

“‘I was right then,’ says Mr. Wilson, who was elected to two terms each as the state's governor and U.S. senator, in a three-hour interview. ‘I'm right now. I think time has proven me right.’” – John Harwood, Wall Street Journal, 5/3/02

Pete Wilson makes no apologies in 2010…

“Wilson is unapologetic, telling The Chronicle this week that ‘what we did in '94 we did because we felt it was essential to protect the state. We did it because it was the right thing to do. It's still the right thing to do.’” – Joe Garofoli, San Francisco Chronicle, 3/20/10

If Meg Whitman wants to earn the trust of California's Latinos, the right thing for her to do is fire Pete Wilson, right now.

It’s time for Meg to send Pete packing.

Election 2010

Meg Whitman’s Bermuda and Cayman Islands Tax Shelters; Why She Must Release Her Taxes

Cross-posted from the California Accountability Project blog. 

According to documents filed with the Internal Revenue Service, in 2007 Meg Whitman’s charitable foundation invested $4 million offshore, in Hedge Funds based in Bermuda and the Cayman Islands.

Is Meg Whitman still shifting her millions into offshore tax havens to avoid having to pay her fair share?

And how can we know for sure that she’s put a stop to the practice – if, in fact, she HAS put a stop to the practice – without a look at her tax returns?

California’s voters expect and deserve to know if Whitman is continuing to engage in tax avoidance schemes.

Meg Whitman – with an estimated worth of $1.4 billion – must do as other wealthy candidates for California Governor have done, and release her personal income tax returns.

The Sacramento Bee noted on Tuesday (2/23):

“Arnold Schwarzenegger released his tax returns when he ran for governor. So did other rich candidates of recent years: Steve Westly, Phil Angelides, Bill Simon, Jane Harman and Al Checchi. What about the 2010 crop? A campaign spokeswoman said Meg Whitman plans to release only financial info required by law (not tax returns).”

The release of tax returns by wealthy candidates for governor is a well-established precedent in the State of California.

Steve Poizner, Whitman’s GOP Primary opponent, has agreed to release his income tax returns, according to the San Francisco Chronicle’s Carla Marinucci (on 2/22).

“GOP gubernatorial candidate Steve Poizner, saying he is a ‘firm believer in transparency,'’ became the first in the 2010 California governor's race to say he'll release his tax returns.”

While these are compelling arguments for Ms. Whitman to release such crucial information, equally important is the fact that Meg Whitman has a documented history of utilizing tax avoidance schemes.

In 2007, Meg Whitman’s charitable foundation sent several million dollars offshore, to Hedge Funds based in Bermuda and the Cayman Islands.

“The Griffith R. Harsh IV and Margaret C. Whitman Charitable Foundation in 2007…also invested $3 million in hedge funds based in the Cayman Islands — a Caribbean tax haven that's been the subject of political controversy…. ‘When you're a billionaire, you will do things with money that don't look so good when you're a political candidate,’ said John Pitney, a government and politics professor at Claremont McKenna College. ‘Even if they're totally ethical and lawful, they can still be embarrassing.’’”[Mercury News, 11/18/09]

“The foundation's tax returns also show $3 million invested in Cayman Island hedge funds and $1 million in another fund in Ireland. ‘If I were her investment adviser, I would have told her to avoid the offshore investment until she had figured out her political future,’ said Morris, the accountant….The Caymans have been a target of politicians in recent years. U.S. Sen. Carl Levin, D-Mich., and Rep. Lloyd Doggett, D-Texas, recently introduced legislation seeking to rein in tax shelters in places such as the Caymans.”– [Mercury News, 11/6/09]

The filings can be found at: http://dynamodata.fdncenter.org/990pf_pdf_archive/208/208033091/208033091_200712_990PF.pdf

Here’s what they reveal:

In 2007 alone,Meg Whitman’s foundation invested $4 Million in Caribbean Tax Havens

$1 MILLION INVESTED IN ARCHIPELAGO HOLDINGS (Based in Bermuda)

According to information provided to the IRS by the Griffith R. Harsh IV and Margaret C. Whitman Charitable Foundation, the foundation transferred $1 million to Bermuda-based Archipelago Holdings, Ltd. on 9/28/07.

$1 MILLION INVESTED IN MASON CAPITAL, LTD. (Based In Cayman Islands)

According to information provided to the IRS by the Griffith R. Harsh IV and Margaret C. Whitman Charitable Foundation, the foundation transferred $1 million to Cayman Islands-based Mason Capital, Ltd. on 9/28/07.

$2 MILLION INVESTED IN TPG-AXON PARTNERS (OFFSHORE), LTD

According to information provided to the IRS by the Griffith R. Harsh IV and Margaret C. Whitman Charitable Foundation, the foundation transferred $2 million to Cayman Islands-based TPG-Axon Partners (Offshore) Ltd. on 5/1/07.

In 2007, the Pittsburgh Post-Gazette (7/6/07) discussed Offshore Hedge Funds Archipelago and Mason Capital, reporting:

“Between Sept. 28 and Sept. 30, 2004, the University of Pittsburgh Medical Center transferred $55 million to investment funds in the Caribbean, more than half of the money destined for a Cayman Islands office building known as the Safehaven Corporate Centre.

“The transfers were part of $204.5 million sent by UPMC to sun-soaked, tax-friendly locations in the Caymans, the Virgin Islands or Bermuda during the fiscal year beginning July 2004 and ending June 2005, according to Internal Revenue Service records. Many of the funds were set up by private investment syndicates looking to avoid U.S. taxes.

“….In fact, nonprofit health-care providers, colleges and philanthropies with major endowments have spent the last decade or so steering large chunks of their portfolio away from the volatile U.S. stock market and into less traditional investments — particularly private equity and hedge funds, thousands of which are registered hundreds of miles south of Miami, in the Caribbean. Thanks to a loophole in the tax code, which is now under examination by Congress and soon could be eliminated, there are tax benefits to the offshore strategy…”

“Investing in a U.S.-based hedge fund — which typically borrows against the investors' kitty, using the original investment plus the leveraged money to play for big short-term gains — normally would subject a nonprofit to something called the ‘unrelated business income tax.’

“….But by investing offshore, nonprofits are able to escape that tax — for now. The U.S. Senate Finance Committee is considering a proposal that would tax the dividends from offshore hedge fund investments, which, if implemented, would significantly lower the nonprofits' hedge fund returns.‘It's troubling that some nonprofits are part of that game,’ Sen. Charles Grassely [sic] of Iowa, the senior Republican on the committee, said recently.

“….In its most recent filing, [Pitt] reported, among other transfers, having sent $3 million to Archipelago Holdingsin Bermuda, $3.5 million to Beacon International in Bermuda, $3.5 million to Bermuda's March International, and $12.5 million to Mason Capital Ltd. in the Caymans.” [Pittsburgh Post-Gazette, July 6, 2007]

The Associated Press reported on 2/18/10:

“Thousands of international companies and hedge funds have traditionally been incorporated in offshore financial centers in the Caribbean and elsewhere, drawn by low tax rates and banking rules and legal systems that make it easy to move capital around the globe. But U.S. and European lawmakers and regulators are weighing a number of proposals aimed at cracking down on abuses and collecting more tax revenue from multinational operations…. The Cayman Islands, which lie 150 miles (240 kilometers) south of Cuba, does not directly tax any of the roughly 80,000 companies registered there, and has no income tax or capital gains tax. Its offshore financial services sector accounts for about half of the islands' economy.”

Meg Whitman must release her income tax returns and prove to the people of this state that she is not trying to dodge paying her fair share in taxes by continuing to stash her millions in places offshore, like Bermuda and the Cayman Islands.