LITTLE ROCK, Ark. (AP) – As first lady in the final year of the Clinton administration, Hillary Rodham Clinton endorsed a White House plan to give tax breaks to private foundations and wealthy charity donors at the same time the William J. Clinton Foundation was soliciting donations for her husband’s presidential library, recently released Clinton-era documents show.
The blurred lines between the tax reductions proposed by the Clinton administration in 2000 and the Clinton Library’s fundraising were an early foreshadowing of the potential ethics concerns that have flared around the Clintons’ courting of corporate and foreign donors for their family charity before she launched her campaign for the 2016 Democratic presidential nomination.
White House documents in the Clinton Library reviewed by The Associated Press show Hillary Clinton and Bill Clinton were kept apprised about a tax reduction package that would have benefited donors, including those to his presidential library, by reducing their tax burden. An interagency task force set up by Bill Clinton’s executive order proposed those breaks along with deductions to middle-class taxpayers who did not itemize their returns. Federal officials estimated the plan would cost the U.S. government $14 billion in lost tax payments over a decade.
In a January 2000 memo to Hillary Clinton from senior aides, plans for a “philanthropy tax initiative roll-out” showed her scrawled approval, “HRC” and “OK.” The document, marked with the archive stamp “HRC handwriting,” indicated her endorsement of the tax package, which included provisions to reduce and simplify an excise tax on private foundations’ investments and allow more deductions for charitable donations of appreciated property. The Clinton White House included the tax proposal in its final budget in February 2000, but it did not survive the Republican-led Congress.
“Without your leadership, none of these proposals would have been included in the tax package,” three aides wrote to Hillary Clinton in the memo, days before she led a private conference call outlining the plan to private foundation and nonprofit leaders.