Cindy McCain sells Sudan investments; renews debate on tax returns

Given the mystery surrounding John McCain’s wife’s finances, stories like these are not going to help matters.

Cindy McCain, the wife of the Republican presumptive nominee for president, has sold off at least $2 million she held in funds with investments in Sudan businesses.

The mutual funds — American Funds Europacific Growth and American Funds Capital World Growth and Income — have investments in companies with business in Sudan, according to the Sudan Divestment Task Force, an advocacy organization that has been working to persuade states, universities and other organizations to divest.

“As soon as she was made aware, she sold it,” said Brian Rogers, a spokesman for the McCain campaign. “Senator and Mrs. McCain are committed to doing everything possible to end the genocide in Darfur.”

Both funds were listed by her husband, Senator John McCain, on his financial disclosure forms. The investments and the divestiture were first reported by The Associated Press, and confirmed by the McCain campaign.

This issue came up briefly a year ago, when four presidential candidates — Sam Brownback, John Edwards, Rudy Giuliani, and Barack Obama — learned of their Sudan-related holdings and quickly divested themselves. For John McCain, who seems to have very few assets of his own, this didn’t come up until now.

In light of Cindy McCain’s rather indignant remarks last week about keeping her finances private, these $2 million dollars in Sudanese investments just won’t do.

Here’s a WaPo editorial on the subject published yesterday:

“It won’t do.” That was our bottom line in 1984 when Rep. Geraldine Ferraro of New York, Democratic vice presidential candidate, balked at releasing her husband’s income tax returns. Ms. Ferraro ultimately relented. It was our bottom line four years ago, when Teresa Heinz Kerry, wife of the Democratic nominee, refused to release her returns; Ms. Kerry relented as well. And it is just as apt now with regard to Cindy McCain’s tax returns.

For a candidate who puts a premium on transparency and ethics, John McCain has been slow and grudging in releasing tax information. He did not commit to doing so until after he had secured the nomination, and then he disclosed only two years of taxes, far less than his Democratic rivals. Mr. McCain’s wife, the heir to a liquor and beer distributorship, declined to release her returns, citing — as Ms. Heinz Kerry did — her children’s privacy. Releasing tax information entails intrusion, but, as we wrote four years ago, presidential candidates and their spouses “relinquish a significant measure of privacy. Meanwhile, tax returns provide information not contained in financial disclosure forms, such as charitable contributions and the use of tax shelters.” For Mrs. McCain to say, as she did on NBC’s “Today” show this week, that she would never release her tax returns, not even if she were to become first lady, is unacceptable. “This is a privacy issue,” she said. “My husband is the candidate.”

The candidate should get his wife to reconsider. The last thing the country needs in a new president is more secrecy.

And this was before the revelations about the Sudanese investments.

This story isn’t going away.

I doubt if the middle class voter, whose kids are going to be saddled with paying for Bush’s tax cuts for the rich (which McCain was against, then for) will like to pay extra taxes so that Cindy McCain can keep an anknown number of millions of dollars.

The tax returns are important because they answer this politically important question: How much does the McCain family benefit from the tax cuts which McCain now supports? Is it a million dollars a year? More? Inquiring minds want to know!

  • If she doesn’t want to make her tax returns public, then she’s got no business talking about living in the WH, or referring to herself as “first lady.” I’d have call her “first B****,” but then I’d probably have millions of angry dogs wanting to bite me for defamation of character.

    And how does this become a “privacy-for-her-children” issue? Maybe the fact that they’re going to profit immensely at some point from innumerable nefarious business schemes like the Sudan investments issue?

  • Steve raises another good question: How much would the McCain children benefit from the “death tax” policies that McBush is pushing? (I assume he’s pushing it!)

    OT, check out what happened to Saint Petraeus’s BFF Ahmed Chalabi:

    Sources in Baghdad tell NBC News that as of this week American military and civilian officials have cut off all contact with controversial Iraqi politician Ahmad Chalabi, the former favorite of Washington’s once powerful neoconservatives.

    The reason, the sources say, is “unauthorized” contacts with Iran’s government…

    http://www.msnbc.msn.com/id/24620260/

    For those with really short memories, here’s the two, chumming it up last November:

    Before the war, Chalabi provided faulty intelligence on Iraq’s supposed weapons programs, helping launch the war. He was investigated for allegations that he passed intelligence to Iran, “wrongdoing that could have endangered American troops and American lives,” according to Sen. Dick Durbin (D-IL). Furthermore, Chalabi has alliances with militia leader Muqtada al Sadr, who has led a “series of uprisings against the U.S. military.”

    In February, Chalabi became a lead figure in building Iraqi support for the Bush administration’s escalation plan. Subsequently, he “sabotaged” de-Baathification reforms. Nevertheless, Petraeus’s spokesman insists that Chalabi “has a lot of energy.”

    http://thinkprogress.org/2007/10/31/petraeus-chalabi/

  • While I do think Cindy McCain has to release her tax returns, the American Funds Europacific Growth issue is much ado about nothing: 1) Cindy McCain does not strike me as a sophisticated micromanager of her financial assets. 2) The portfolio calls for 80% investments in companies from Europe and the Pacific Basin. 3) On their Detailed Fund Information page , there is no mention of Sudan, or any reason to believe any of their investments are there. In fact after breaking down how much of their investment is in Europe and Asia, they list 13% in “Other, (including Canada and Latin America)”. 4) Few investors read the details of their portfolio this closely, and even if they do, they change daily.

  • Considering that Cindy’s investments were the reason John gets into a lot of trouble via the Keating Five (and the fact that John was once for more “openness and transparency” in government), I think it is fair for all the candidates spouses release their tax returns.

    Knowing the media, John will just coat the returns in BBQ sauce and put the media to sleep until his next scandal.

  • From the DFI—these are red-flag clues that any investment house should be questioning:

    …based outside the United States.

    based chiefly in Europe and the Pacific Basin

    Invests primarily in….

    Non-U.S. Holdings

    Normally, at least 80% of assets….

  • DanP (#5) is right that the McCains probably weren’t aware of the Sudanese investments by that fund. But that’s precisely the reason they both need to disclose their finances — so the helpful people in the public arena can do the dirty work of checking this stuff out. How do you think that Brownback, Obama, Edwards and Giuliani were apprised of this detail?

  • Does anyone know if there is a required vetting process for spouses of Presidential candidates? Vice Presidential candidates? The tax returns for the John and Cindy McCain foundation HAVE been released,and it seems the McCains children’s elite schools were the recipients of the lions share of largesse(Tax write off),but a whopping $250..went to the Phoenix Crisis Center for abused children. Ken Silverstein did a piece on this for Harper’s recently.

  • nal#8-Obama did last year and had to get rid of them…..those in glass houses should not throw stones…

  • I’ve never been a big fan of the whole divestment theory myself. Getting the University to get rid of investments with companies doing business in South Africa was big when I went to school, and I figured it was a bad strategy. Investments=influence. Better to use the influence than to wash your hands of the matter.
    (Financial disclosure- I own shares of Cap World G&I)

  • I’d note that the fund doesn’t invest in Sudan, it invests in Chinese companies that do business in Sudan. I have shares of the same fund in 401(k) and didn’t know until this news that I had any sort of investment contact with Sudan, so I’m pretty sure Cindy McCain didn’t either.

  • Another paper criticized the decision not to release the returns. Here’s the quote (courtesy of Mark Kleiman):

    This is not just a questionable political decision that threatens to haunt her husband’s campaign for the next six months. It is also the wrong decision. Mrs. McCain needs to change her mind and release the returns as quickly as possible. How Republican John McCain, the presumptive presidential nominee who rightly fancies himself the king of transparency on Capitol Hill, and his campaign strategists can permit this open sore to fester is unimaginable.

    The source?
    The Washington TIMES

  • Because Cindy McCain is a “working” executive at her inherited business her earnings are one half his (and visa versa) so the hidden tax return actually shows some of John Mc’s income. The tax people may be very interested in what it reveals. Community property law trumps prenupts.

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