
Prof. Richard Painter Quoted by Barron’s About Wealthy Members in the New Administration
Professor Richard Painter, S. Walter Richey Professor of Corporate Law, was quoted by Barron’s about Donald Trump’s administration being filled with super wealthy individuals. If confirmed, these and other wealthy people — many without government experience or a working understanding of the departments they may oversee — will hold considerable sway over public policy. In return, they, either individually or through their business interests, could potentially benefit from policies and regulations they oversee. Prof. Painter said that billionaires often have had roles in previous administrations and the superwealthy don’t take these jobs for the money, but for the opportunity to participate in government and take on a new challenge. He said, “They also get a tax benefit.” Although government officials must sell holdings that may pose a conflict of interest, they often don’t have to pay capital-gains taxes on these ethics-related sales if they are issued a “certificate of divestiture” from the Office of Government Ethics and invest the proceeds from the sale in treasuries or a government-approved diversified fund. Having to sell a concentrated, long-held investment can benefit someone who has been hesitant to diversify their holdings because of embedded capital gains, he said.