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Biden Blasts McCain On Tax Loophole

(CBS)
From CBS News' Ryan Corsaro:

(WOODBRIDGE, VA.) - Joe Biden accused John McCain of supporting an offshore tax loophole that saves corporations billions, saying McCain is "claiming the mantle of reform in public but promising business as usual in private."

The loophole, according to Biden, allows companies to evade taxes by setting up offices in Bermuda.

"On the floor of the United States Senate, John spoke out against these offshore tax breaks not long ago. Then, while he was in Bermuda, according to the Bermuda Royal Gazette, the newspaper, he started singing a very, very different tune," said Biden.

"He told local business leaders with whom he met, covered by the paper, that he would oppose efforts to close this loophole that exists allowing insurance companies to evade four to seven billion in taxes a year. And now, and now we learn that shortly after he made these statements to these leaders and executives from those very companies. They held a fundraiser and contributed $50,000 to his campaign."

Biden pointed out that it was not illegal, but called it "the same old Washington game."

"Instead of giving those companies tax breaks for going offshore, we believe that middle class Americans should be getting tax breaks so you can pay for your gas and your groceries, afford your mortgage, be able to send your kids to college. And that's why we're going to close that loophole," Biden said to cheers from the crowd.

The Obama campaign released a McCain attack ad about loophole this morning, entitled "BERMUDA!"

Tucker Bounds of the McCain campaign responded to the ad, saying it "cleverly ignores two key facts: his own campaign headquarters is provided by a company based in Bermuda, and is guilty of the very same off-shore benefits he's attacking. Whether he is opposing additional oil drilling while decrying high gas prices or blasting earmarks despite his requests for a billion dollars in pork barrel spending for his home state, Barack Obama has a stronger record of hypocrisy than he does making change in Washington."