California Dem who wants rich to pay ‘fair share’ in taxes has offshore accounts

WASHINGTON — A California Democrat, who advocates for a crackdown on wealthy Americans who avoid taxes, holds a stake in two funds based in the tax haven of the Cayman Islands.

Rep. Josh Harder, whose district includes the city of Stockton in Northern California, owns between $15,000 and $50,000 of BVA Fund IX, part of Bessemer Venture Associates IX LP, and between $1,000 and $15,000 in BVA Fund VIII, part of Bessemer Venture Associates VIII LP, Politico reported Wednesday, citing his 2022 financial disclosure forms.

Harder’s holdings in the Caribbean tax shelter, which doesn’t tax corporate profits or capital gains, emerged after the 37-year-old demanded stricter policies for others.

“Quick Reminder: We should be making it harder for billionaires to cheat on their taxes, not easier,” Harder tweeted Jan. 11.

The congressman, who took office in 2019, tweeted two years later: “The richest Americans dodge $160 billion in taxes each year. It’s time they pay their fair share (and cut middle class taxes while we’re at it!).”

Harder’s office told Politico that the former venture capitalist, who was a vice president at Bessemer Venture Associates, is not a hypocrite.

“He has no control over funds from his old career and has never and will never take a dime of corporate PAC money,” spokeswoman Jen Fox said. “Josh will continue being a leader for campaign finance reform including banning members from ever trading stocks or accepting corporate PAC money.”

The disclosure forms indicate that Harder received between $5,000 and $15,000 in “partnership income” from the larger Cayman holding.

The accounts represent a relatively small share of the Democrat’s overall reported wealth, which included between $1.4 million and $5.85 million in Charles Schwab investment accounts.

Other prominent Democrats have faced accusations of hypocrisy for campaigning on making the wealthy pay their “fair share,” including President Biden.

Biden, 81, who regularly rails against “wealthy tax cheats,” and first lady Jill Biden avoided up to $500,000 in Medicare taxes in 2017 and 2018 by routing $13 million in income through special corporate entities — triggering GOP calls for him to reimburse the Treasury Department.

First son Hunter Biden, 53, faces federal charges related to his failure to pay at least $1.4 million in taxes between 2016 and 2019 on foreign income. Those earnings are one of the subjects of an impeachment inquiry due the fact that Joe Biden met with many of Hunter’s overseas patrons, including those from China, Kazakhstan, Mexico, Russia and Ukraine.

IRS whistleblowers Gary Shapley and Joseph Ziegler last year alleged a Justice Department coverup to shield Hunter and Joe Biden in the tax investigation.

An environmental spending bill signed by Biden in 2022 included funds to boost IRS enforcement and adopted a new 15% minimum corporate tax on the global earnings of American businesses.

Republicans generally advocate lower taxes — with former President Donald Trump previously brushing off reports that he paid little before taking office, saying during a 2016 debate with Hillary Clinton: “That makes me smart.”