The Blog

Obama Called Cayman Island Investments 'The Biggest Tax Scam on Record'

4:02 PM, Feb 11, 2013 • By DANIEL HALPER
Widget tooltip
Single Page Print Larger Text Smaller Text Alerts

In the 2008 presidential campaign, Barack Obama called Cayman Island investments "the biggest tax scam on record." Now, in 2013, President Obama has nominated Jack Lew, who had $56,000 in Cayman Island investments, to be the next secretary of Treasury. 

Here's Obama making the claim in 2008:

And here's the New York Times the other day reporting on Lew's investments:

As recently as 2010, Jack Lew, President Obama‘s nominee to be the next secretary of the Treasury, had $56,000 invested in a CitiGroup venture capital fund based in the Cayman Islands’ notorious Ugland House, a building whose mailboxes are home to nearly 19,000 corporate entities, many of them tax shelters.

The investment has been in public documents for years and drew no attention when Mr. Lew was confirmed to be deputy secretary of state in 2009 and director of the White House Office of Management and Budget in 2010.

But the fund is coming to light as Mr. Obama and Congressional Democrats are zeroing on taxes lost to off-shore entities, including hedge funds, as a way to stave off $1 trillion in across-the-board spending cuts set to begin March 1.

Recent Blog Posts

The Weekly Standard Archives

Browse 18 Years of the Weekly Standard

Old covers