Wednesday, August 14, 2013

NY Times: Close "LLC Loopholes" that help big real estate

The New York Times

Editorial:  Subpoenas for Albany
. . . One obvious area of investigation is the link between
campaign contributions and legislation — in particular, any
connections between real estate developers who received a huge tax
break in January, after contributing millions of dollars to Albany
lawmakers.
Common Cause New York last week issued a report showing how developers
in New York City have essentially gamed the system, using a loophole
that allows them to create numerous limited liability corporations
with each contributing the maximum allowed for an individual. The
governor as well as legislators have benefited from this. On Jan. 8,
for instance, Glenwood Management gave $225,000 to Governor Cuomo in
checks of $25,000 each from nine separate LLCs, Common Cause found.
Other companies use the same device to give to legislators upstate who
then vote for New York City real estate interests.

Click here for the full editorial.