Hillary Clinton previewed tax penalties Monday that would hit a Cayman Islands hedge fund run by Marc Mezvinsky, her son-in-law.
Clinton’s tax proposal, the Washington Examiner first reported, would penalize investments in the Cayman Islands and other nations that have a zero percent tax rate on capital gains.
"We’re now in a position, I think, where we can go after some of these schemes that you did read about, the kind of misclassifying of income, trying to make it look like it’s a capital gain, when it’s really ordinary income, um, going ahead and rooting income through the Bahamas or the Cayman Islands or wherever," Clinton said during an interview on MSNBC Monday evening.
"I want to have a surcharge, so wherever the income comes from, whatever the income is, it would be on the adjusted gross income and it would give us a chance to try to get around and end some of these abuses that are taking place in the tax system."
According to documents cited by the Examiner, Mezvinsky, who has been married to Chelsea Clinton since 2010, and his associates at Eaglevale Partners have two outlets in the Cayman Islands linked to the New York-based hedge fund firm, namely Eaglevale Partners Offshore Fund, Ltd., and Eaglevale Hellenic Opportunity Offshore Fund, Ltd.
Democrats attacked 2012 Republican presidential nominee Mitt Romney for his investments in the Cayman Islands last presidential election, accusing him of ducking taxes.