Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Island Rum Fight Fattens Rangel's Coffers

Campaign cash pours in from Puerto Rico, Virgin Islands

By Kevin Spak, Newser Staff

Posted Oct 6, 2009 1:30 PM CDT

(Newser) – Charles Rangel’s campaign coffers are bulging with campaign cash from Puerto Rico and the Virgin Islands, but he insists that’s in no way influencing his decision on the competing rum tax bills each territory is pushing. “Besides Puerto Rico, you are the only one who has asked about it,” he told a Washington Times reporter. At stake: The Virgin Islands' pact to lure Captain Morgan’s distillery from Puerto Rico.

The Virgin Islands plied Captain Morgan with big subsidies, paid from the federal rum tax money returned to the territory. Puerto Rico’s preferred bill would vastly limit those subsidies, while the Virgin Islands would stabilize that tax stream. Rangel, head of the powerful Ways and Means committee, is crucial to either bill. So Puerto Rico has shot to his second-largest source of donations, behind only New York. The Virgin Islands have long occupied a top-10 spot.

[Images (2)]

[Quotes (1)]

Captain Morgan and US Virgin Islands Governor John deJongh strike the pose with the Morganettes and security during the 2008 Democratic National Convention in Denver, Aug. 27, 2008. (Jack Dempsey/AP Images for Captain Morgan)

House Ways and Means Committee Chairman Rep. Charles Rangel, speaks to the media in this file photo. (AP Photo/Charles Dharapak)

« Prev« Prev | Next »Next » Slideshow

It's depressing, but it is not illegal. One would hope members of Congress would not be influenced by campaign donations, but they obviously are. - Melanie Sloan, executive director of Citizens for Responsibility and Ethics
in Washington

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

OTHER STORIES ON OUR RADAR

AP Photo

35 Brutally Honest Reasons Men Say No to Sex (The Stir)

Man in Mugshot Explains Why He Has Half a Head (HuffPost)

Another Sign Rihanna and Chris Brown Might Get Back Together? (Celebuzz)

These Exes Were Spotted Making Out … and That's a Bad Thing (Bleacher Report)

Which Entertainer Pulled Out of 'Inappropriate' Whitney Tribute? (NewsOne)

Partner Links

A snapshot of the day's best news stories.

View Larger Grid

All Today Yesterday Pick a Date

COMMENTS

Read the comment policy

Showing 3 of 7 comments

tomodachi

Oct 7, 2009 11:47 AM CDT

I could not disagree more with spudsy... Rangal's a scumbag from NY making financial decisions concerning disbursements of NATIONAL taxpayer revenue. The idea that NYS should be the ones who fix his scumbagness is BS. What sane taxpayer would personally accept this flagrant conflict of interest??? Then why doesn't the US government regulate their own? There should be a strong federal regulation of people who disperse federal tax revenue.

Spudsy

Oct 7, 2009 8:07 AM CDT

The key here tomodachi is "I doubt that any kind of campaign financing reform would be passed by EITHER party". Good reform like you want will never be passed by a legislative body because too many pols on both sides want the side money. Now, maybe if it were a ballot initiative but I am not sure that can be done on a national level like it can be done in California, for example. I am afraid it is up to the good citizens of NY to chase this guy out.

riffran

Oct 7, 2009 6:20 AM CDT

I could not agree more spuds..I would give at least three or more thumbs up if I could

What's Popular Now on Facebook

Rick Santorum: Birth Control Is 'Not OK'

Valentine's Day Role-Playing Goes Very Wrong

Washington Times (Source Grid »)

Politics

taxes • Charles Rangel • Puerto Rico • rum • Virgin Islands • subsidies

More Newser Stories

Puerto Rico, Virgin Islands in Battle Over Captain Morgan

Caribbean rum war heads to Washington

(NEWSER) - A battle over rum has two US territories up in arms, with Puerto Rico accusing the Virgin Islands of a raid worthy of Captain Morgan himself. Diageo, the maker of Captain Morgan rum, is moving production from Puerto Rico to the US Virgin Islands, which offered the company $2.7 billion in incentives over 30 years to make the move. The money comes from a refund of rum import taxes collected in the US; outraged Puerto Rico is rallying friends in Congress against the deal. More»

New Trouble for Rangel: Ethics Panel Widens Probe

Investigation will cover amended financial reports

(NEWSER) - The House ethics committee is expanding its yearlong investigation of Charles Rangel to look at amended financial disclosure forms he filed earlier this year. Rangel, who chairs the Ways and Means Committee, filed the reports in July to account for $600,000 in previously undisclosed assets, reports Politico. The development comes as Republicans are ramping up pressure to oust him from his chairmanship while the inquiry unfolds. More»

Stanford Spent Millions to Lobby Congress

$8B scammer's island junkets helped push anti-tax agenda

(NEWSER) - Billionaire R. Allen Stanford has spent millions of dollars in attempting to enlist high-powered Washington officials in his anti-tax efforts, reports the Wall Street Journal. Stanford’s investment companies spent over $5 million on lobbying, $2 million on campaign contributions, and thousands more on flying members of Congress to the Caribbean, where Stanford lives. Many of the legislators do have longstanding interests in the region and have reimbursed him. More»

Refineries Shut as Omar Nears Virgin Islands

Hurricane could threaten Puerto Rico as Category 2

(NEWSER) - Caribbean oil refineries are under threat from Hurricane Omar, whose 85-mph winds roared through St. Croix today, Bloomberg reports. It could hit the Virgin Islands, home to one of the hemisphere's largest refineries, as a Category 2 storm tomorrow. Puerto Rico may be in line for 20 inches of rain and life-threatening floods, forecasters say. More»

'Language Barrier', Not Tax Evasion: Rangel

Powerful congressman sorry for screw-up

(NEWSER) - Rep. Charles Rangel blamed his failure to pay taxes on his rental income from a Caribbean villa to “cultural and language barriers,” reports the New York Times. “Every time I thought I was getting somewhere, they’d start speaking Spanish,” Rangel said of his attempts to sort out his paperwork. The congressman admitted responsibility for his errors and submitted materials for an ethics investigation. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Island Rum Fight Fattens Rangel's Coffers