Trump And Clinton Share A Delaware Tax Loophole Address

Trump and Clinton

They may not agree on everything, but it turns out that Hillary Clinton and Donald Trump do have one in common…..a tax haven inside the United States.

Both presidential candidates have an affinity for the same two-storey office building in Wilmington, Delaware and both refuse to explain why they share that same address.

The unassuming building has become “famous for helping tens of thousands of companies avoid hundreds of millions of dollars in tax through” in what is known as “Delaware loophole”

The Guardian reports:

The receptionist at 1209 North Orange Street isn’t surprised that a journalist has turned up unannounced on a sunny weekday afternoon.

“You know I can’t speak to you,” she says. A yellow post-it note on her computer screen reads “MEDIA: Chuck Miller” with the phone number of the company’s director of corporate communications. Miller can’t answer many questions either, except to say that the company does not advise clients on their tax affairs.

The Guardian is not the first media organisation to turn up at the offices of Corporation Trust Centre, and it’s unlikely to be the last.

This squat, yellow brick office building just north of Wilmington’s rundown downtown is the registered address of more than 285,000 companies. That’s more than any other known address in the world, and 15 times more than the 18,000 registered in Ugland House, a five-storey building in the Cayman Islands that Barack Obama called “either the biggest building in the world, or the biggest tax scam on record”.

Officially, 1209 North Orange is home to Apple, American Airlines, Coca-Cola, Walmart and dozens of other companies in the Fortune 500 list of America’s biggest companies. Being registered in Delaware lets companies take advantage of strict corporate secrecy rules, business-friendly courts and the “Delaware loophole”, which can allow companies to legally shift earnings from other states to Delaware, where they are not taxed on non-physical incomes generated outside of the state.

The loophole is said to have cost other states more than $9bn in lost taxes over the past decade and led to Delaware to be described as “one of the world’s biggest havens for tax avoidance and evasion”.

But it’s not just big corporations that have chosen to make 1209 North Orange their official home.

Both the leading candidates for president – Hillary Clinton and Donald Trump – have companies registered at 1209 North Orange, and have refused to explain why.

Clinton, who has repeatedly promised that as president she will crack down on “outrageous tax havens and loopholes that super-rich people across the world are exploiting in Panama and elsewhere”, collected more than $16m in public speaking fees and book royalties in 2014 through the doors of 1209, according to the Clintons’ tax return.

Just eight days after stepping down as secretary of state in February 2013, Clinton registered ZFS Holdings LLC at CTC’s offices. Bill Clinton set up WJC LLC, a vehicle to collect his consultation fees, at the same address in 2008.

A spokesman for Clinton said: “ZFS was set up when Secretary Clinton left the State Department as an entity to manage her book and speaking income. No federal, state, or local taxes were saved by the Clintons as a result of this structure.”

The Clintons’ companies share the office with several of Trump’s companies. They include Trump International Management Corp and several companies that form part of Hudson Waterfront Associates, a Trump partnership to develop more than $1bn worth of luxury condos on the west side of Manhattan.

Of the 515 companies on Trump’s official Federal Election Commission (FEC) filing, 378 are registered in Delaware, he revealed, after being questioned by the Guardian about why so many of his New York-based companies are incorporated in Delaware.

He said he asked his staff to find out how many entities he has in Delaware. “I figured they’d maybe say two or three, right?” Trump said at a rally in Harrington, Delaware, on Friday. “We have 378 entities registered in the state of Delaware, meaning I pay you a lot of money, folks. I don’t feel at all guilty, OK?”

Among them are 40 Wall Street Corporation, Trump’s 72-storey downtown tower that was the tallest building in the world for two months in 1930, and the Trump Carousel in Central Park.

The Trump campaign did not respond to questions about whether Trump was using Delaware in order to avoid taxes in New York.

  • TG

    So what… the government is aware of the loopholes and they don’t close them… because they put them there…

    It’s obviously not against any laws because they write them too.

    Trump uses them because his high paid accountants do their job and found them. Any and ALL smart corporations and business owners do. They are hidden perks for being filthy rich, put there by the filthy rich. No crime in being filthy rich… the crime is when the government makes the loopholes and fails to close them and then protect their ill gotten wealth from the tax system they designed.

    On the other hand, crooked hellery and her crime family is and always only was working for the government (or should I say… the government works for them). She and her grifter husband are public servants that got filthy rich while collecting pay from taxpayers in public office and they are shrewd enough to use those “convenient” loopholes… Surprise surprise…

    What business has that hag and her family of crooks ever owned that pays taxes…. ? NONE
    How did they and so many other political parasites get filthy rich or richer in their public office terms… selling their crappy books…? Running their “charity” foundation…? ha ha ha