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Obama Releases More Tax Returns, Questions Clinton Ties to Potential Tax Shelters

Posted on March 26, 2008 by Meg Shreve
Document originally published in Tax Notes Today
on March 26, 2008.

After announcing the release of his tax returns dating back to 2000, Democratic presidential candidate Sen. Barack Obama, D-Ill., on March 25 reiterated his call for Sen. Hillary Rodham Clinton, D-N.Y., to disclose her returns and answer questions about her husband's link to potential tax shelters.

Clinton, who remains in a close race with Obama for the Democratic presidential nomination, promised earlier this month to release her returns around April 15. Obama released his 2006 returns in February. According to the released returns, the Obamas earned about $984,000 in 2006 compared to about $241,000 in 2000. (Check out the Tax History Project for Obama's 2000-2006 tax returns.)

In a campaign release, Obama also questioned former President Bill Clinton's ties to Yucaipa Cos. LLC, a holding company with reported ties to potential tax shelters in the Cayman Islands. The Obama campaign pointed to media reports from last year that the firm, primarily invested in supermarket chains, has used three potential tax shelters. The campaign called on the Clintons to explain how income received from the company was taxed."

Clinton's campaign did not respond to a request for comment by press time. Issuing her own call for transparency, Clinton earlier this month asked Obama to release documents chronicling his dealings with Tony Rezko, an Illinois real estate developer currently on trial.

A spokesperson for Republican presidential candidate Sen. John McCain, R-Ariz., told Tax Analysts that McCain intends to release his return shortly after he files in April.