California Lawmaker: Vanguard Should Operate Tax-free

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From across the country, a Los Angeles lawmaker has turned the tables on what exactly is the injustice being done in the case of alleged tax avoidance at Malvern’s Vanguard Group.

California Assemblyman Mike Gatto
California Assemblyman Mike Gatto

California Assemblyman Mike Gatto, D-Los Angeles, is alarmed that more harm would be done if whistleblower David Danon has his way; the retirement packages of union workers across the country could take a hit if back taxes translated to higher costs for Vanguard investors, a Philly.com report by Joseph N. DiStefano explained.

“In this case, I’m not sure this guy is doing some sort of the Lord’s work,” Gatto said in the article.

Whether it’s a bill to “exempt Vanguard and any other ‘mutual fund company owned by investors in the mutual funds that it serves’ from owing California state income taxes,” which unanimously passed a California Assembly Revenue and Tax Committee last week, or one to block any whistleblower rewards from flowing to anyone who alleges wrongdoing at Vanguard, Gatto would rather see the mutual fund company operate tax-free in the state than saddle investors with higher fees.

Meanwhile in other states, Texas has paid Danon $117,000 for whistleblowing while the IRS and SEC continue to review the case.

Read more about Gatto’s legislation and viewpoints concerning Vanguard on Philly.com here, and check out previous VISTA Today coverage of the whistleblower saga here.

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