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Bill Clinton Earned $15.4 Million From Burkle Firm (Update2)
By Ryan J. Donmoyer
April 5 (Bloomberg) -- Former President Bill Clinton has earned $15.4
million from billionaire Ron Burkle's Yucaipa Cos. investment firm
since 2003, according to tax documents released by his wife,
presidential candidate Hillary Clinton.
The earnings represent 20 percent of the approximately $75 million
Bill Clinton earned during the same period, according to the
documents. That may raise new questions about what services he
performed for Los Angeles-based Yucaipa, whose investors include the
ruler of Dubai, Sheikh Mohammed Bin Rashid al- Maktoum.
Tax lawyers said the Yucaipa partnership income for Bill Clinton looks
to be a form of salary because it was in round numbers for most
years.
``Most people who make that much money work for it,'' said Yale
University tax law professor Michael Graetz, a former Treasury
Department official in President George H.W. Bush's administration.
``What are they being paid for, and if it's the Sheikh of Dubai paying
the husband of somebody who might be the next president of the United
States, what do they think they're paying for?''
Jay Carson, a spokesman for New York Senator Clinton, said in an e-
mailed statement that former President Clinton is a partner in a
Yucaipa fund and ``provides his best advice on potential investments,
advocates generally on behalf of the funds, and seeks to create
opportunities for investors to consider investing in the fund.''
Carson didn't respond to a question about whether Bill Clinton did any
work for Dubai. In 2006 Senator Clinton opposed efforts by a Dubai-
based company to acquire control over six U.S. ports.
Tax Returns
The payments from Yucaipa to Bill Clinton were detailed in seven years
of tax returns released by Hillary Clinton, 60, following pressure to
disclose them from rival Barack Obama, the Illinois senator who made
public his own returns in March.
The returns covered tax years 2000 through 2006. Hillary Clinton's
campaign also released information about the couple's 2007 income,
although they haven't yet filed a return for that year. Obama has yet
to release information on his 2007 income.
The former president, 61, received $1 million from Yucaipa in 2003, $4
million in 2004 and $5 million in 2005. In 2006, he received a
guaranteed payment of $2.5 million plus a $156,611 share of the
profits. The campaign said he earned $2.75 million from partnership
income in 2007.
Amounts `Odd'
``The flat amounts received from Yucaipa are odd,'' said Tom
Ochsenschlager, vice president of taxation at the American Institute
of Certified Public Accountants, who agreed that it signaled Bill
Clinton was performing a service. ``That's quite unusual.''
Previously, Hillary Clinton reported only that the former president
earned ``more than $1,000'' a year from Yucaipa on financial
disclosure forms she is required to file in the Senate.
In all, the Clintons earned $109 million from 2000 through 2007 and
paid $33.8 million in federal taxes, the returns and campaign
documents show. They donated $10.3 million of their income over that
time to charities.
The bulk of those charitable donations went to the family foundation.
From 2002 through 2006, $5.9 million of the $6.4 million, or 93
percent, of the Clinton's charitable giving went directly to the
Clinton Family Foundation, according to the tax returns and foundation
records.
Cayman Islands Funds
The tax returns indicate the couple paid all the U.S. federal taxes
owed on the income from Yucaipa, which controls three funds located in
the Cayman Islands. The Cayman Islands doesn't charge any individual
or corporate income tax and has strict bank secrecy laws.
Bill Clinton's ties to Yucaipa have sparked controversy over the past
year, including a September report in the Wall Street Journal that
detailed how one of the former president's aides had helped arrange a
partnership with Burkle that dissolved amid litigation over
allegations of misused funds.
Yucaipa spokesman Frank Quintero didn't return calls seeking comment
about what services Bill Clinton performed for the company. Forbes
Magazine listed Burkle, 55, as the 91st richest American last year,
with a net worth of $3.5 billion.
Bill Clinton also earned $800,000 in 2006 and 2007 as an adviser to
infoUSA Inc., a data-mining company owned by Vinod Gupta, a longtime
supporter.
Carson said in December that the former president ``is taking steps to
ensure'' that ``there will be an appropriate transition from those
relationships'' if his wife receives the Democratic presidential
nomination.
Rising Income
The 210 pages of documents released yesterday chronicle the Clintons'
rising income since 1999, the last year for which they had previously
released a tax return. The couple earned $20.4 million last year,
compared with less than $420,000 in 1999, the year before they left
the White House.
The bulk of their income, $51.9 million, came from Bill Clinton's
speeches, the campaign said in a summary. The former president also
earned $1.2 million from his presidential pension and $29.6 million
from royalties and an advance for his autobiography.
Hillary Clinton earned $10.5 million in book royalties and advances
and a total of $1.1 million from her Senate salaries since 2001. In
1999, the Clintons earned $417,467, had $334,681 in taxable income
after deductions including $39,200 to charity, and paid $92,104 in
federal taxes.
Among other details the couple listed $250,000 in cleaning and
maintenance expenses on their home for 2003 and 2004 for which they
took a partial deduction for their separate home offices.
At a Democratic Party convention in Grand Forks, North Dakota, last
night, Hillary Clinton said that her husband ``has made a lot of money
since he left the White House doing what he loves most, talking to
people.''
To contact the reporter on this story: Ryan J. Donmoyer in Washington
at rdonmoyer@bloomberg.net;
Last Updated: April 5, 2008 16:46 EDT
By Ryan J. Donmoyer
April 5 (Bloomberg) -- Former President Bill Clinton has earned $15.4
million from billionaire Ron Burkle's Yucaipa Cos. investment firm
since 2003, according to tax documents released by his wife,
presidential candidate Hillary Clinton.
The earnings represent 20 percent of the approximately $75 million
Bill Clinton earned during the same period, according to the
documents. That may raise new questions about what services he
performed for Los Angeles-based Yucaipa, whose investors include the
ruler of Dubai, Sheikh Mohammed Bin Rashid al- Maktoum.
Tax lawyers said the Yucaipa partnership income for Bill Clinton looks
to be a form of salary because it was in round numbers for most
years.
``Most people who make that much money work for it,'' said Yale
University tax law professor Michael Graetz, a former Treasury
Department official in President George H.W. Bush's administration.
``What are they being paid for, and if it's the Sheikh of Dubai paying
the husband of somebody who might be the next president of the United
States, what do they think they're paying for?''
Jay Carson, a spokesman for New York Senator Clinton, said in an e-
mailed statement that former President Clinton is a partner in a
Yucaipa fund and ``provides his best advice on potential investments,
advocates generally on behalf of the funds, and seeks to create
opportunities for investors to consider investing in the fund.''
Carson didn't respond to a question about whether Bill Clinton did any
work for Dubai. In 2006 Senator Clinton opposed efforts by a Dubai-
based company to acquire control over six U.S. ports.
Tax Returns
The payments from Yucaipa to Bill Clinton were detailed in seven years
of tax returns released by Hillary Clinton, 60, following pressure to
disclose them from rival Barack Obama, the Illinois senator who made
public his own returns in March.
The returns covered tax years 2000 through 2006. Hillary Clinton's
campaign also released information about the couple's 2007 income,
although they haven't yet filed a return for that year. Obama has yet
to release information on his 2007 income.
The former president, 61, received $1 million from Yucaipa in 2003, $4
million in 2004 and $5 million in 2005. In 2006, he received a
guaranteed payment of $2.5 million plus a $156,611 share of the
profits. The campaign said he earned $2.75 million from partnership
income in 2007.
Amounts `Odd'
``The flat amounts received from Yucaipa are odd,'' said Tom
Ochsenschlager, vice president of taxation at the American Institute
of Certified Public Accountants, who agreed that it signaled Bill
Clinton was performing a service. ``That's quite unusual.''
Previously, Hillary Clinton reported only that the former president
earned ``more than $1,000'' a year from Yucaipa on financial
disclosure forms she is required to file in the Senate.
In all, the Clintons earned $109 million from 2000 through 2007 and
paid $33.8 million in federal taxes, the returns and campaign
documents show. They donated $10.3 million of their income over that
time to charities.
The bulk of those charitable donations went to the family foundation.
From 2002 through 2006, $5.9 million of the $6.4 million, or 93
percent, of the Clinton's charitable giving went directly to the
Clinton Family Foundation, according to the tax returns and foundation
records.
Cayman Islands Funds
The tax returns indicate the couple paid all the U.S. federal taxes
owed on the income from Yucaipa, which controls three funds located in
the Cayman Islands. The Cayman Islands doesn't charge any individual
or corporate income tax and has strict bank secrecy laws.
Bill Clinton's ties to Yucaipa have sparked controversy over the past
year, including a September report in the Wall Street Journal that
detailed how one of the former president's aides had helped arrange a
partnership with Burkle that dissolved amid litigation over
allegations of misused funds.
Yucaipa spokesman Frank Quintero didn't return calls seeking comment
about what services Bill Clinton performed for the company. Forbes
Magazine listed Burkle, 55, as the 91st richest American last year,
with a net worth of $3.5 billion.
Bill Clinton also earned $800,000 in 2006 and 2007 as an adviser to
infoUSA Inc., a data-mining company owned by Vinod Gupta, a longtime
supporter.
Carson said in December that the former president ``is taking steps to
ensure'' that ``there will be an appropriate transition from those
relationships'' if his wife receives the Democratic presidential
nomination.
Rising Income
The 210 pages of documents released yesterday chronicle the Clintons'
rising income since 1999, the last year for which they had previously
released a tax return. The couple earned $20.4 million last year,
compared with less than $420,000 in 1999, the year before they left
the White House.
The bulk of their income, $51.9 million, came from Bill Clinton's
speeches, the campaign said in a summary. The former president also
earned $1.2 million from his presidential pension and $29.6 million
from royalties and an advance for his autobiography.
Hillary Clinton earned $10.5 million in book royalties and advances
and a total of $1.1 million from her Senate salaries since 2001. In
1999, the Clintons earned $417,467, had $334,681 in taxable income
after deductions including $39,200 to charity, and paid $92,104 in
federal taxes.
Among other details the couple listed $250,000 in cleaning and
maintenance expenses on their home for 2003 and 2004 for which they
took a partial deduction for their separate home offices.
At a Democratic Party convention in Grand Forks, North Dakota, last
night, Hillary Clinton said that her husband ``has made a lot of money
since he left the White House doing what he loves most, talking to
people.''
To contact the reporter on this story: Ryan J. Donmoyer in Washington
at rdonmoyer@bloomberg.net;
Last Updated: April 5, 2008 16:46 EDT
