Wednesday, May 04, 2011

Shocker: Rangel Aide Also a Tax Cheat

We've figured out how to balance the federal budget: Make Charles Rangel and all his aides pay their taxes. Nothing like leading by example, Chuckles.
You know what they say about birds of a feather.

James Capel, a former top aide to Rep. Charles Rangel, 'fessed up in Manhattan Criminal Court to being a tax cheat yesterday -- just like his embattled boss.

Capel, who earned nearly $160,000 running Rangel's New York office before leaving the job in February, pleaded guilty to one count of failure to file a tax return and two counts of tax fraud, all misdemeanor charges.

He must fork over $42,088 in New York state back taxes and penalties and foot an additional $1,000 fine. He'll stay out of jail only providing he's paid up by his sentencing date of July 12.

In taking his plea, Capel admitted to Manhattan Criminal Court Judge Abraham Clott that he failed to file tax returns for the years 2007, 2008 and 2009. The crimes are misdemeanors because Capel was paying some taxes automatically via payroll withholding.

But according to a law-enforcement source, Capel actually hadn't filed taxes on his congressional salary since 2003, but the statute of limitations prevents authorities from going after those alleged lapses

In all, Capel saved himself a total of $25,000 in mostly municipal taxes, which were not automatically withheld from his paychecks.

And while it's odd for such small-scale tax frauds to result in criminal prosecutions, Capel had repeatedly balked at resolving the filing lapses, the source said.
Imagine how much jail time he'd be facing if he wasn't a member of the privileged elite class.

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