A hot tax tip for you

Hey, I’ve got a hot tax tip for you. This year, route your hedge fund profits through a reinsurer in Bermuda and you could literally save millions on your tax bill!

Oh, you don’t have millions in hedge funds? Sorry, you’ve got to pay your taxes.

That’s right. For over a decade, hedge fund billionaires have exploited a loophole allowing investors to avoid paying taxes by routing money through a tax shelter in Bermuda.

It’s a little like money laundering, and it’s just one of many egregious loopholes in our tax code that create what the New York Times recently called a “private tax system” for the wealthiest Americans.

Hedge fund billionaires should play by the same rules as the rest of us.

One of the biggest offenders was a reinsurer called PacRe Ltd., owned by an American billionaire. I called on the Treasury Department to crack down on PacRe, and just this week PacRe shut down. That’s an important victory, but it’s just the tip of the iceberg when it comes to going after wealthy tax cheats.

We can’t let special interests write their own rules. It’s long past time for a complete overhaul of the tax code. It’s time to modernize our tax system and do it in a way that encourages growth and job creation, while making sure everyone pays their fair share.

I'm going to keep fighting to fix the tax code and close these monstrous loopholes that let some think they can play by a different set of rules.

Count on it.

Ron