Betsy DeVos is in the news today for all the wrong reasons. Newsweek published an article yesterday about her family registering a $40 million yacht to the Cayman Islands. Since she became the U.S Secretary of Education, she’s been trying her hardest to destroy the public education system in America. Her administration has rolled back Obama era policies that protected the rights of transgender children and those related to children that qualify for special education. If not for Congress stepping up and increasing the Education Budget, DeVos would have slashed $9 billion from her Federal budget. News of her family owning a yacht registered in the Cayman Islands should come as no surprise.
Betsy DeVos’s family wealth stems from their ownership of Amway. Amway is a Multi-Level Marketing company. In 2010, they were slapped with a $150 million judgement in 2010 for fraud as a result of a class-action lawsuit. Since 2010, there have been numerous allegations the company continues to be an illegal pyramid scheme.
Her families track record of doing the right thing and not exploiting others is pretty crappy. When I read today that her family registers luxury yachts in the Cayman Islands, I was not surprised. Owning a yacht in the United States isn’t cheap. Owners are subject to sales and use taxes. Betsy doesn’t like to spend money.
Owning a yacht means you need staff and crew to manage the vessel. When owners register yachts within the U.S., they are subject to labor laws, employment taxes, workmen’s compensation requirements, and Social Security taxes. Foreign governments like the Cayman Islands are widely known for their offering anonymity for individuals that want to hide their wealth.
The Cayman Islands are a tax-free government. Her family saves a boatload of cash by using the Cayman Islands for registration. They save money on various taxes and don’t have to adhere to the labor laws of the United States. On a $40 million dollar, yacht their annual savings could easily be millions of dollars.
As if saving money isn’t incentive enough for the yacht registration, they also avoid U.S. Government regulations by the Coast Guard. When owners register their vessels abroad, they do not have to meet U.S. Coast Guard certification and inspection requirements. Owners can skimp out on meeting safety requirements by registering the boat in the Cayman Islands.
Basically, the DeVos family doesn’t want to deal with the U.S. Government and all their dang requirements. Betsy DeVos doesn’t appear to like the tax burdens that come with being extremely wealthy.
If she doesn’t want to pay taxes for owning luxury items, why on earth would she want to pay for public education?
Betsy DeVos has no problem earning money. However, Newsweek’s article further proves the lengths she will take to protect her money. The discovery of her families foreign yachts shouldn’t surprise any of us.
What should surprise us is why she still has a job.