New reports show that Sen. Tina Smith’s (D-MN) husband has up to $1 million invested in a hedge fund based in Bermuda, a well-known tax haven.
The Washington Free Beacon was the first to discover the investment, noting that the senator’s husband, Archie Smith, has an investment of possibly $1 million in a “Pine Grove Offshore Fund Exempted Company Class A.” While Smith’s recent financial disclosure describes the hedge fund as based in New Jersey, The Free Beacon found that it is actually located in Bermuda, according to its filing with the Securities and Exchange Commission.
In 2016, Bermuda was listed as the world’s worst corporate tax have by Oxfam, an international company working to end poverty. Bermuda tax laws call for zero corporate tax, no income tax, and no capital gains tax, making it a hot spot for off-shore investments.
“Tax dodging isn’t an abstract accounting game—the lost revenue has devastating consequences for the world’s poorest people who miss out on life-saving medicines and the chance to go to school,” Oxfam said at the time, according to The Guardian.
Smith’s campaign insists that the senator’s financial disclosure forms are “accurate,” since the fund’s parent company, Pine Grove Asset Management is based in New Jersey, The Free Beacon reports.
“This investment is part of Archie’s individual retirement account, which, like the traditional IRAs that millions of Americans have, is tax deferred and he will pay taxes on it when he begins drawing on his retirement,” campaign spokesperson Jen Gates said, though also revealed that Smith’s husband plans to sell the investment before the November election.
Smith, who was appointed to her position after Sen. Al Franken (D-MN) resigned, will face off against State Sen. Karin Housley (R-St. Croix River Valley), who referred to her opponent as a “puppet” of the Democratic Party.
“It is time for a new voice,” Housley said while campaigning at the Minnesota State Fair. “People are ready for somebody to fight for them and get something done in Washington, and I am that new voice.”
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Anthony Gockowski is managing editor of The Minnesota Sun. Follow Anthony on Twitter. Email tips to [email protected].