Shea-Porter Financier Rangel Finally Admits Owing Back Taxes

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September 10, 2008                                                                                     (202) 479-7070

Shea-Porter Financier Rangel Finally Admits Owing Back Taxes
Will Shea-Porter Finally Give Up Her Ethically-Tainted Cash After Latest Rangel Revelation?

Washington – In yet another embarrassing report, Rep. Charlie Rangel, Chairman of the powerful, tax-writing Ways and Means Committee, has finally admitted that he owes “several thousands of dollars” in back taxes to the federal, state and city government after he failed repeatedly to disclose rental income he’s received for years from a beachfront vista on an exclusive part of Dominican Republic. His tax “savings” was passed along to his fellow vulnerable Democratic representatives, including Carol Shea-Porter. To date, Shea-Porter (D-NH) has benefitted from Charlie Rangel’s ethical void, receiving $14000 from Rangel’s various fundraising accounts for Democratic candidates.

Today’s New York Times reported Rangel’s personal revelation that, despite having said earlier he does not owe federal back taxes, his accountants have found that he will have to pay “a modest amount” in back taxes:

“Representative Charles B. Rangel, chairman of the Congressional committee that writes the nation’s tax code, failed to pay an unspecified amount in federal taxes during the past five years on rental income from a villa he owns in the Dominican Republic, his lawyer said on Tuesday.

“Mr. Rangel, a Harlem Democrat who is chairman of the Ways and Means Committee, has owned the beachfront house at the Punta Cana resort and club since 1988, but never declared the $75,000 in rental income he has earned either on his tax returns or on his Congressional financial disclosure form.

“…his lawyer, Lanny Davis, said that the accountants had since revised their calculations and determined that Mr. Rangel would owe ‘a modest amount’ to the federal government for unpaid taxes over the last five years. Mr. Davis said Mr. Rangel was likely to owe both the state and the city a similar amount over the same period. The combined total of back taxes owed to the city, state and federal governments will probably be “several thousands of dollars,” Mr. Davis said. (NY Times, 09/10/2008)

“Now that Charlie Rangel has finally admitted to owing thousands of dollars after circumventing the very tax laws he has authored, it’s time for Carol Shea-Porter to admit that she took his ethically-tainted cash and cough it up,” said NRCC spokesman Ken Spain. “Shea-Porter stood by the embattled Harlem Congressman as he defrauded New York City taxpayers with his four apartments and now that he has hired Bill Clinton’s former lawyer and admitted guilt, she should give up the money or explain why she finds it necessary to hold on to scandal-ridden cash.”

 (Sources: Fec.gov, CQ Money Line)