Video: Political Ad Calls Bermuda ‘Tax Haven’

September 7, 2014

The Al Franken campaign released a new TV ad entitled “Bermuda”, with Democratic Senator Al Franken accusing his Republican opponent Mike McFadden’ business of “exploiting a Bermuda tax haven to avoid paying millions in U.S. taxes.”

Franken’s campaign website says, “The 30-second ad, titled “Bermuda,” explains that the tropical island isn’t just a popular tourist destination but a place where companies set up shop to avoid paying U.S. taxes.

“Those companies include McFadden’s firm, Lazard Ltd., a global investment bank that is incorporated in Bermuda for tax purposes. The ad notes, “McFadden’s company uses a special tax loophole to list its headquarters offshore and avoid paying millions of dollars in taxes in America.”

“Dozens of American companies — including McFadden’s — have incorporated in Bermuda to avoid paying U.S. taxes while remaining American companies for all intents and purposes, and benefiting from U.S. protections.”

The video was posted online on September 5th, and includes footage of Bermuda:

The video voice-over said, “Bermuda. Known for its beauty. Its pink beaches. And for businesses trying to avoid paying taxes. Meet investment banker Mike McFadden. He’s running for Senate in Minnesota.

“But McFadden’s business is based right here in Bermuda. That’s right, McFadden’s company uses a special tax loophole to list its headquarters offshore and avoid paying millions of dollars in taxes in America.”

“Investment banker Mike McFadden says his business record is a reason Minnesotans should vote for him. But what he doesn’t want voters to know is that his company is dodging millions in U.S. taxes by exploiting an offshore tax haven,” said Alexandra Fetissoff, Franken campaign spokeswoman.

WCCO news report on the “Bermuda” ad:

Tom Erickson, a spokesman for the McFadden for Senate campaign, said: “This is nothing but a desperate attempt by Democrats to turn attention away from the failed Obama-Franken foreign policy agenda that is creating chaos around the globe.”

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  1. Weekend Reports, Photos, Videos, Links & More | | September 8, 2014
  1. Coffee says:

    Bermuda has a few trump cards .. But you have to engage Dr.Brown If you intend to bring them into play .

  2. Build a Better Bermuda says:

    America needs to ask itself the question of what is it willing to do to bring business back. One of the major factors for companies to move offshore is to avoid paying excessive taxes. The US is one of a few jurisdiction that will tax companies on the money they earn outside of the US. By Al Franken’s own description, Lazard is a global investment bank, so how can a company compete with other global companies, if they are being made to pay more taxes than their competion? So they move to a jurisdiction where they can compete or more equal ground in the global market. I have always found it entertaining that the US like to portray us a some kind of greedy jurisdiction, but expect their companies to pay taxes on the income they make elsewhere, I find that just a little greedy too.

  3. Kunta says:

    FINALLY some news that P.L.P and Dr. Brown wont get blamed for, or will they?

    • somuchless says:

      Just remove the A you… K**t

      • Hurricane says:

        Give it a break @ somuchless. Come up with something original

    • 32n64w says:

      You’re right they won’t or shouldn’t be blamed as the author of this piece lacks a fundamental understanding of economics, much like former Premiers Brown & Cox.

  4. This is all plps’fault….I blame them….they caused it from the get go….you know it…i know it….n’dey know it…….but seriously…we are a convenient scape goat….Al is useing our goat again….you know……somebodies always gotta get my goat…but you know something that is what we need …this ispublicity….it is defamation of character….and at the same time …untrue in context there are correlations that indicate Bermuda has its’merits….by definition we can be a good investment…..and I for one Refuse to deny it….thanks Al…..just for that I think you should take the ALS challengé….after all you resemble that comment…by definition a politician….oh …buy the way good luck with that…we need humour in that area……you fell right intuit…….pun….pundant…..etc….

  5. Yours say give us your tired and your weak….we say….give us your money….

  6. Quite frankly….Bermuda has come to the rescue time and time again…and it is high time you knew it….everytime you have a weather related catastophy…it is reinsurance money that gets to the aflicted and stricken before your govt. Can get through you beauro crapic red tape….over and over….and over….cash in hand if not the same day within three………your probably still waiting for relief in New Orleans….from your very own…… long as you have us in proper context…please continue….

  7. It is by the gooodness of God that in your own country you have those three unspeakabley precious things;- freedom of speach,freedom of conscience and the prudence never to practice either of them……say it isn’t so Al….say it isn’t so…..

  8. Lack of money is the root of all evil:)..

  9. Forgiveness is the fragrance that the violet shedsunder the heal that has crushed it…

  10. When you find yourself on the side of the majority……….it is time to pause and reflect.

  11. Get your facts straight first….then you can distort them as you please…

    • Jus' Askin' says:

      Please learn how Bernews works Senior Chingaderro, Mr.Tajmablink, Mr. Vapapooah and Very Superstitious ;-)

  12. more than enough says:

    Full time to stop relying on this unsustainable ‘pillar’ of the economy, facilitating these nefarious practices… the trikle down bs is not good enough for most of us, yet greatly benefits some.
    How about some homegrown industry… perhaps something that will create employment, can be produced right here in bermuda, will boost tourist numbers, eliminate an entire avenue of crime, save countless dollars and create an additional revenue stream which would benefit our people and the government, and, in turn our islands economy will grow.
    I challenge anyone to come up with a better buy bermuda campaign than that!
    It is time to legalize ganja, and get into gear.
    Tired of these tax dodgers and polititions banking all the profits along with their friends and families.
    Support this cause and put the wealth into everybody’s hands.
    Recreational and, of course, medical, and possibly industrial(small scale) it is also a source of protien and essential fatty acids…we can’t go wrong with this sustainable 100% bermuda produced product…
    Think about it.

  13. Terry says:

    Now this is some funny sheet.
    Rum all around……..

  14. ….Surely you jest. says:

    More exposure achieved from this ad than anything the Tourism Authority has been able to do. And isn’t it interesting that at the height of PLP’s tenure companies were still moving to Bermuda. Guess all 14 years weren’t as bad as some would have us believe.

    • SMH says:

      Er…yes those 14 years were that bad otherwise we wouldn’t have $2 billion in debt and another $2 billion in unfunded pension liabilites and 25% additional civil servants we can’t support now. Facts don’t lie but politicians sure seem to when it suits them. Global recession my lass!

  15. Serz doe says:

    As the great ex premier Cannonier once said:”what do you expect us to do, we can’t all be fishermen”

  16. Kangoocar says:

    This is exactly why I laugh at the majority of Bermudians, that happen to be clueless concerning US politicts!!! The vast majority support the democrats who will stop at nothing to destroy our well being!!! Obama and his Dems actually know the benifits of which Bermuda provides to them, but they continuosly for political reasons throw us under the bus for personal gain??? Bermudians need to actually research who they support instead of blindly following the Dems!!!! Even MLK knew what the Dems were all about, and that is why he was a Republican!!! And before the empty vessels attack me for that, do your research and for once be educated.

  17. bluebird says:

    Now what else can you exspect from a “DEMOCRAT” as the the same as the PLP/BIU,they want to spend other peoples money.
    There national DEBT is only $17Trillion dollars plus and increasing by $1.5Billion dollars per day.
    And just look at all the Democrat controlled cities and Democrat Controlled STATES.
    Then maybe tale a look at WISCONSIN (now conservative or republican) where unemployment had “DROPPED” and TAXES have been “DECREASED” and parents have School Choice for there children.And the democrats and the Unions are still trying to get rid of the administration that those people voted in office.
    “If you have common sense you are a conservative”
    Al Frankin has no common sense.

    • Common sense .... says:

      No question that Al Franken has no common sense but fact is that the real US national debt is far greater than $17 trillion – while that is the “official” debt there are any number of “off-balance-sheet” items that should be included. The combined funding shortfall for Social Security and Medicare dwarfs that – best estimates put that at $120 trillion. Add in assorted government employee pension plans and sooner or later you’ll end up with the US owing real money.

  18. Politically Incorrect says:

    Accusing us of being a popular tourist destination is also somewhat inaccurate these days.

  19. Navin Johnson says:

    Say what you will about all of the benefits that Bermuda provides the US but at the end of the day the tax revenue lost is greater than what is paid for reinsurance losses….Bermuda is a tax Haven simple as that…Much as I dislike the system and recognize that companies can do what is legally permitted to minimize taxes someday a change will close that loophole….Saying we are not a tax haven does not make it so….

  20. more than enough says:

    Tax haven for the rich…
    Tax burden for the not so rich.

  21. more than enough says:

    I see that no one was able to trump my buy bermuda plan!

  22. e says:

    For what it’s worth, according to McFadden, the company branch he co-headed (Lazard Middle Market) was incorporated in Delaware.

    Al Franken is apparently a shareholder in the (parent?) affiliate company, Lazard Ltd., through an investment fund.

    Because nothing says “vibrant, clear-headed and forthright electoral analysis” like “SNL alumnus.”

    Makes me look at Minnesota every other day and think there but for the grace of God…

  23. Frank says:


  24. Allspice says:

    Actually, they don’t.
    They need to win the ear of the American public. Rhetoric and bull work just as well as anything else.

    We need to do the same and make it clear why what we do here benefits the US economy, and Americans. If we can’t do that we’re out.

  25. James Rego says:

    No one tried harder to bury Bermuda than Dan Rostenkowski, big Democrat House Ways and Means tax man, who almost succeeded, that is until he was indicted on corruption charges for his role in the House post office scandal.