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Real 'Work'? Clinton Swipes at Chelsea's Profession

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February 19, 2008 4:48 PM

ABC News' Jennifer Parker and Eloise Harper Report: Sen. Hillary Clinton took a swipe at her daughter's profession today at an economic roundtable discussion at a restaurant in Parma, Ohio, suggesting wealthy investment bankers and hedge fund managers on Wall Street aren't doing real 'work.'

The former first lady's daughter, Chelsea Clinton, works for New York-based hedge fund Avenue Capital Group. She previously worked in New York for McKinsey & Company, her first job after graduating with her master's degree from Oxford University.

"We also have to reward work more," Clinton told a small group of Ohio residents today. "and by that, I mean, I have people in New York working on Wall Street as investment managers, as hedge fund executives. Under the tax code, they can pay a lower percentage of their income in taxes on $50 million dollars, than a teacher, or a nurse, or a truck driver in Parma pays on $50,000. That's very discouraging to people."

You just feel like, 'wait a minute. I'm working as hard as I can.' All those people you see in your law office. They're working as hard as they can and they feel like they're just getting further and further behind," Clinton said. 

It's not the first time Clinton has taken a swipe against her daughter's profession. Campaigning in Wisconsin yesterday, Clinton railed against hedge funds as Chelsea sat off to the side.

"I saw a sign over here - someone has a t-shirt on, tax hedge fund dealers," Clinton said Monday, "well in this economy we are going to have a fair tax system again. A Wall Street investment manager, a hedge fund dealer, should not pay a lower percentage of taxes on his 50 million dollars worth of income.”

In 2006, Chelsea scolded her mother for telling an audience that young people "think work is a four-letter word." Clinton said daughter Chelsea called her to complain, arguing she does work hard and her friends work hard. Clinton later said she apologized to her daughter.

The line about investment fund and hedge fund managers has been introduced into Clinton's talking points as she campaigns across the economically struggling state of Ohio.  Clinton is focusing her campaign on the delegate-rich states of Ohio and Texas voting March 4.

February 19, 2008 in Bush, George W., Tancredo, Tom | Permalink | User Comments (362)

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Does anyone doubt that Mrs. Clinton payed a lower percentage of income tax on the Millions she made last year too? (gee I wonder if that is why she is hiding her financial records). She could have paid more than she owed, the IRS will accept more taxes from anyone who is willing to pay them. Did she step and do what she claims is the right thing?

Will we ever know, or will she continue to hide the truth and mislead the American people.

Posted by: Matt | Feb 19, 2008 7:28:23 PM

Mrs. Clinton seems to have forgotten that individuals employed in in finance/banking/accounting/law spend insane hours working for their salaries.

And what has she been doing since becoming first lady of AK? Going to schools to give speeches doesn't count as work whether in the plant, the restaurant or the office.

Posted by: Andrew | Feb 19, 2008 7:28:49 PM

PLEASE!!!! This from a Lady who had some Futures Trader make $100,000 for her overnight in Cattle Futures...I bet she didn't turn the money down...What a Crock!...What a Hypocrite! She will say ANYTHING to get elected...She is a Total FRAUD...CAmn't you people see how FAKE she is?

Posted by: jjarden | Feb 19, 2008 7:28:50 PM

Does Chelsea really "work"? My job (also investments-related) requires me to actually go to the office and do something productive each day. All Chelsea seems to be doing lately is fly around the country courting super-delegates.

Posted by: Allen | Feb 19, 2008 7:29:46 PM

As a 60 year old Caucasian Canadian who has lived in this glorious country for over 25 years, I would dearly love to see the United States drag itself into the 21st century by electing a woman as its leader like a good portion of the planet... but not a woman who has sold her soul, integrity and sense of honour to an odious creature.

To vote for Hillary because she is a woman is as specious as not voting for her because of her gender ...

How about Michelle Obama for Vice President?

Posted by: Alison Carnie | Feb 19, 2008 7:30:46 PM

the $50 million hedge fund guy pays a smaller percentage than the 50k guy BUT, the $50 million guy pays MILLIONS in taxes and the 50k guy pays THOUSANDS. Thank God for the 50 million guy. Without him the 50k guy would be paying A LOT MORE in taxes!

Posted by: mikey | Feb 19, 2008 7:31:14 PM

Hi Jason,

The hedge fund and private equity millionaires make all their money off of capital gains and dividends, which are taxed at 15%. Moreover, people stop paying Social Security and other payroll taxes for income above $102,000. Those two factors result in some of the wealthiest paying the least tax.

Posted by: Mike | Feb 19, 2008 7:31:43 PM

How many teachers make $50k/year, ignorant and out-of-touch example?

Posted by: Daniel | Feb 19, 2008 7:32:57 PM

What about taxing cattle futures?

Posted by: Always Right | Feb 19, 2008 7:34:04 PM

Amazing! She has been a US Senator for how many years and she still has not "fixed" this situation. I thought she was the experienced one with 'solutions".

Posted by: KJ | Feb 19, 2008 7:35:13 PM

Agree with Paul, well spoken remarks. I do really understand all the excitement about obama, i was young once and believed everything I heard, but having lived through the last 3 decades of history I tend to listen more carefully, and ask questions. No tax breaks for everyone who sent jobs overseas...every car company? Every bank or financial company? Any global company no longer gets tax breaks here in the US, can we make it any easier for them to send even MORE jobs overseas?

Posted by: unatay | Feb 19, 2008 7:35:55 PM

Jason, for starters never fall prey to economically disingenuous arguments from political demagogues. General partners are taxed at a lower tax rate (capital gains instead of income) because the "carried interest" they earn is done so through risk capital and is a capital gain (i.e. if their investment fails, they don't earn anything other than the income from their investment fees, so they actually are taxed at standard income tax rates for actual income, not capital gains). Of course Clinton nor Obama will never admit the truth on this because it doesn't serve their populist message, shocking I know...

Posted by: Big A | Feb 19, 2008 7:37:37 PM

Here is what 6 years in the Senate got us from Clinton:

Senator Clinton, who has served only one full term - 6yrs. - and another year campaigning, has managed to author and pass into law - 20 - twenty pieces of legislation in her first six years.

These bills can be found on the website of the Library of Congress, but to save you trouble, I’ll post them here for you.

1. Establish the Kate Mullany National Historic Site.

2. Support the goals and ideals of Better Hearing and Speech Month.

3. Recognize the Ellis Island Medal of Honor.

4. Name courthouse after Thurgood Marshall.

5. Name courthouse after James L. Watson.

6. Name post office after Jonn A. O’Shea.

7. Designate Aug. 7, 2003, as National Purple Heart Recognition Day.

8. Support the goals and ideals of National Purple Heart Recognition Day.

9. Honor the life and legacy of Alexander Hamilton on the bicentennial of his death.

10. Congratulate the Syracuse Univ. Orange Men’s Lacrosse Team on winning the championship.

11. Congratulate the Le Moyne College Dolphins Men’s Lacrosse Team on winning the championship.

12. Establish the 225th Anniversary of the American Revolution Commemorative Program.

13. Name post office after Sergeant Riayan A. Tejeda.

14. Honor Shirley Chisholm for her service to the nation and express condolences on her death.

15. Honor John J. Downing, Brian Fahey, and Harry Ford, firefighters who lost their lives on duty. Only five of Clinton’s bills are, more substantive. 16. Extend period of unemployment assistance to victims of 9/11.

17. Pay for city projects in response to 9/11 18. Assist landmine victims in other countries.

19. Assist family caregivers in accessing affordable respite care.

20. Designate part of the National Forest System in Puerto Rico as protected in the wilderness preservation system.

There ya go - experience counts I guess.

Posted by: tankdoc | Feb 19, 2008 7:38:04 PM

I think this is hilarious. If anyone knows taxes, what Hillary is saying is a bunch of BS. As a CPA I prepare tax returns of all sorts and finally we picked up a hedge fund manager last year. Taxable income - 37M, Tax - 12M. That's 32.4% average tax rate. In comparison to another client that had 28k in taxable income (50k in inome minus deductions), that paid $85 single dollars in tax due to child tax credits and energy credits. That's less than 1%. So Hillary, where do you get your numbers from?

Democrats, please stop with the tax lies!!!!!

Posted by: Jeff- CPA | Feb 19, 2008 7:38:55 PM

Why is who does what work even an issue? How hard you work has no direct effect on me. I add a modifier because it could be you are working hard to become an Oncologist. It could be that you will one day help me or someone I know. Indirectly your hard work helps pull the cart that keeps America strong. But to pit you against me to say that I'm being cheated so we must pull you down doesn't help me in the end. Am I supposed to feel satisfied that the government got you for me? Equalized things? Our Justice system is supposed to be fair. All else is a crapshoot, as it should be. You want security? You want government to be your nanny?! You want Hilary to have your IRS file?! Well, the largest meat recall in America's history happened this week. Another glaring example of government security. And the British rate of death for most forms of cancer is twice the rate of America's under their universal/mandatory Hilary care. I'll take Capitalism, Freedom and Independence first and foremost!

Posted by: Carla | Feb 19, 2008 7:38:59 PM

Angel.... you aren't taking one thing into consideration.

Super Tuesday was in March in 1992. Clinton was in 2nd place in February after only 2 or 3 primaries. Right now the majority of states have already voted. It's really tough to compare 1992 to 2008.

Posted by: stink | Feb 19, 2008 7:39:22 PM

If Queen Hillary does not like hedge funds, then what does it say about her precious Chelsea to be working at one?

Hillary must be heartbroken!

Posted by: Average American | Feb 19, 2008 7:39:32 PM

westcoastmanager is no doubt referring to all the hard work she did for the little guy by serving on WalMart's board for all that time..

Posted by: Donna S | Feb 19, 2008 7:39:59 PM

Why does it cost 2 million dollars a year to govern me? I don't need that much governance; other businesses that can will move to a place where they are wanted, and they will take the jobs with them. Punish employers and they will leave. Congrats. In the hedge fund industry, we employ a tremendous number of people, who in turn support their families, and they are thankful we earn as much money as we do and employ them to assists us. It is a legal, ethical, and important part of the economy; even if you do not understand it, you need not demonize it or insits that I should pay millions per year to be a citizen. Besides, what do you think we do with the money we earn? Stuff it in a mattress? Everyone we purchase from is thankful for our success -- they enjoy it with us. Every account we invest in provides someone with working capital for a new business venture. Punishing our work is backwards -- it defeats your goal of full employement. Have you considered what your country would look like without business success? What if you tax away every profitable business? Are you building a country of opportunity or one of failure?

Posted by: gofidelity | Feb 19, 2008 7:40:29 PM

She promised a plan for 200,000 jobs for upstate New Yorkers in her 2000 Senate campaign. So far, no plan and no new jobs. She will say anything to get elected. We are not required to believe her.

Posted by: James | Feb 19, 2008 7:40:38 PM

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