Google's Eric Schmidt circumvents IRS and Federal Election Commission by using tech startups as PAC's and tax shelters
Google's Eric Schmidt has invested millions in tech startups dedicated to electing Democratic Party candidates. He is pictured above with Hillary Clinton.
Schmidt's investment in one of them, CrowdStrike, was for $100 million.
Schmidt is also Chairman of the Defense Innovation Board, Department of Defense (DOD). He was appointed by President Barack Obama in 2016.
Schmidt is no longer Google's CEO. Instead, he works for them as a Technical Consultant.
According to Forbes, Schmidt is worth $13.7 billion and is one of the wealthiest people in the world. He ranks in the Top 100. Forbes is a global media organization specializing in business.
Private political businesses called PPB's are corporations or partnerships who conduct political activities. They circumvent Federal Election Commission (FEC) laws by acting as Political Action Committees (PAC's) with impunity.
They are official Google policy, according to its 20-page report called "Google's Support for Hillary Clinton" dated Nov. 28th, 2016.
The PPB's are designed as tax shelters with losses being racked up year after year. Profit is no where to be found except in projections. They also data mine its client base for future use, some of them governments and publicly traded companies.
Private Political Businesses deduct political activities as ordinary income. No one else can.
These expenses include salaries, bonuses, depreciation, software, hardware, benefits, rent, utilities, equipment, furniture, and other items necessary to run the business.
A properly drafted Private Political Business Partnership creates tax-free income as "a return of capital" equal to money invested.
PPB's are exempt from public scrutiny, federal campaign financing laws and compliance issues.
Business owners write the rules. They control their company, their property, and the candidate or state political committee.
Ten million dollar annual political donors expect political access.
They are guaranteed it round-the-clock if they own any part of a private political business. Direct contact with the candidate, however, is forbidden by law if given to a Political Action Committee (PAC).
Political Action Committees or PAC's are unable to pay for tech infrastructure much less deduct it.
Under what circumstances can "deplorables" deduct political contributions?
Nevermore, according to the IRS. (page six, second item marked #6):
Since 2008, $1.5 billion is the estimated business expenses for Schmidt's political startup companies.
The source is Schmidt's email to Cheryl Mills dated April 15th, 2014:
"Lets assume a total budget of about $1.5 billion, with more than 5000 paid employees and million(s) of volunteers."
Cheryl Mills was Chief Adviser and Counsel to the Hillary Clinton Campaign for President.
One of Schmidt's Private Political Businesses is CrowdStrike. Total investment to date has been $256 million.
According to its own press releases, CrowdStrike admits having a billion dollar valuation. However, it acknowledges it has yet to turn a profit.
In 2015, CrowdStrike reported revenues of $27.3 million.
Why would someone invest $256 million into a company that anticipates losing money year after year? What assets of the company are investors after?
Schmidt has invested in several private political businesses other than CrowdStrike. He was an investor in Civis. The initial investment was $22 million.
There was Bluelabs.
Groundwork was created in 2014 by Schmidt to elect Hillary Clinton President. The election was in 2016.
The Groundwork was initially based in Brooklyn within walking distance of Clinton Campaign Headquarters.
According to the Google Transparency Project and Schmidt, their private political businesses are official policy of Google because they support "its policy interests."
On April 15th, 2014, the "Eric Schmidt Project" was created with coordination from Cheryl Mills, Chief Adviser and Counsel for Hillary Clinton's Campaign for President.
President Barack Obama created the U.S. Digital Service on Aug. 11th, 2014 as cover for Schmidt's private political businesses.
Chicago-based Timshel was another Schmidt private political business. It owns Groundwork.
President Barack Obama (left) at Google headquarters with Eric Schmidt.