Taxes

Drudge is reporting about the brewing battle over Teresa Heinz-Kerry’s tax return release. She does not want them released.

Here’s the thing. I think she has the right to some modicum of privacy. But, there are a lot of questions being raised about Kerry and it is clear that he depends on her.

For example, as Drudge points out, Kerry got a mortgage on this house with Teresa as a co-borrower and is using his share to fund his campaign. But, Kerry does not make enough in one year, according to his tax returns, to pay even the interest payment on his share of the mortgage. So, who is making that payment?

Why is that relevant? Federal election law that Kerry voted for — that’s why.

I had a client who wanted to put his campaign office in the basement of the house he owned jointly with the FEC. The FEC advised us that it would not be permissible because a wife can only give a $2000.00 per election cycle donation.

The client couldn’t let the campaign use the space rent free because he only owned half the house. The value of the space would have exceeded more than $2000.00 during the campaign period. Therefore he couldn’t do it.

Similarly, Kerry took out a mortgage the interest on which exceeds his annual income. Therefore he is going to need his wife to assist in those payments. But, those payments occurred as a result of his campaign and are funding his campaign. His wife offsetting those payments would be an indirect contribution to his campaign and most likely violate Federal election law.

That’s why we need to see her tax records.

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Erick Erickson

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