This was Alice Rogoff, 63, wife of billionaire David Rubenstein and a former Washington business executive turned owner and publisher of Alaska's largest newspaper. Because of the Rubenstein family and how [his ex-wife] influenced the change in the states sovereign fund, the average Alaskan family has lost tens of thousands of dollars.. In November, the House voted to reform carried interest, but Baucus lacked the support to bring the Senate bill to a full committee vote. It was the clearest case of journalism malpractice and propaganda ever seen in Alaska, Fagan wrote in a recent op-ed in Must Read Alaska. To revisit this article, select My Account, thenView saved stories, To revisit this article, visit My Profile, then View saved stories. Parnell who now runs the news site Must Read Alaska, told The Post. [15], In 2014, Rogoff piloted her own plane to track the Iditarod sled race. David Rubenstein started his career as a lawyer; he was an editor of the University of Chicago Law review. In 1975, after graduating from Duke and then the University of Chicago law school, and spending two years at the corporate law firm Paul, Weiss, in New York, Rubenstein served as the counsel to Senator Birch Bayh, Democrat of Indiana, on the Subcommittee on Constitutional Amendments. Over the years, Rubensteins Democratic allegiance has loosened. And during the current Presidential campaign, with its populist themes, the loophole has become a target among Democrats and Republicans alike. It takes some time to educate staff members and educate their bosses that such issues are mostly smoke and mirrorstechniques meant to stall the bill. In the early aughts, theCarlyleGroup was also the subject of myriad conspiracy theories, many of which revolved around its close relationship with the Bush family, the Saudis and the military-industrial complex. (Jahi Chikwendiu/The Washington Post). . This story has been shared 116,666 times. The people who structured the fund to begin with were wise, Suzanne Downing, a former speechwriter for Gov. Theyre so enlightening about history. Posey was unaware that Rubenstein paid for the dinners. Website: Biographyscoop.com They named the company The Carlyle Group after the hotel where they held some of their initial meetings, the Carlyle Hotel in New York. That same year, Rubenstein and Rogoff attended Barbara Bushs seventy-fifth-birthday party, in Kennebunkport. In his acceptance speech, he said, When I was told about this award, I thought there must have been a category for a Jewish boy from Baltimore, and thats how I got it. Carnegie, he said, had written him a letter from the beyond. The white-haired, bespectacled Rubenstein, who divorced after a long marriage in 2017, is also longtime history buff, and has been dubbed the Patriotic Philanthropist in fawning profiles that align with his origin story. 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In 1981, he took a job in the mergers-and-acquisitions group at the Washington-based law firm Shaw, Pittman, Potts & Trowbridge, but he soon started exploring a career change. After living apart for years, rumors of a divorce intensified this summer after Rogoff referred to a marital settlement agreement in court documents for her newspapers bankruptcy proceedings. Enjoy reading!! The congressional Joint Committee on Taxation estimated that closing the loophole would bring the Treasury twenty-five billion dollars in revenue over ten years. Martin Pengelly David Rubenstein speaks with Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, at the Kennedy Center in Washington in May. [6], Rogoff served for over 10 years as the chief financial officer for the magazine U.S. News & World Report. In 2012, the Washington Post described him as the generous repeat benefactor for Washingtons endangered national icons, and the magazine Washingtonian named him a Washingtonian of the Year. At that time, the first leveraged-buyout firms, as private equity was then called, were springing up in New York and Boston, led by groups such as Bain Capital and Kohlberg Kravis Roberts. He has made substantial gifts to Monticello, to James Madisons estate at Montpelier, to Robert E. Lees mansion, to the Iwo Jima Memorial, and, last month, to the Lincoln Memorial. Rubenstein decided to apply to this line of business what hed learned in Washington about lobbying. Speaking about the Administration, a former senior Democratic Senate aide told me, Theyre judicious about using their lobbyingyou want to use it where youre thinking youre going to be effective. The White House decided that its advocacy would not move the needle one way or another., Some support came from unexpected corners. The former senior Senate aide told me, Every time wed do a whip count, we got to fifty-seven, fifty-eight. Magna Carta (Great Charter), also known as Magna Carta Libertatum (Great Charter of Freedoms), is a royal charter of rights that were agreed to by King John of England on June 15, 1215. In Carnegies time, there was no federal income tax; charity was the primary means the rich had of giving back to society, and they could, of course, determine the size of their contributions. David Rubenstein says good philanthropists give time, energy and ideas, not just money. He is one of the most visible philanthropists in Washington, giving millions to the Kennedy Center, the National Archives and a number of universities. He was previously married to Alice Rubenstein from May 21, 1983, when the two wed, to December 8, 2017, when their divorce was finalized. He turned the company around and made it a public company for $290 million. Created in 1976 via an amendment to the Alaska constitution, the Permanent Fund was designed so about 25 percent of the royalties from oil money flowing through the Trans-Alaska pipeline would be placed in a dedicated fund for future generations, who would no longer have oil as a resource. His father sorted mail for the postal service, and his mother was a homemaker. Fleischer, the son of two college professors in Buffalo, became aware of the loophole in the late nineteen-nineties, when he was working as a tax attorney at Davis Polk, in New York. After an earthquake damaged the Washington Monument, Congress picked up half the bill. According to the court filing, the couple separated in 2005. This year, Bernie Sanders, Hillary Clinton, and Donald Trump have all attacked the loophole, often using hedge-fund managers as the rhetorical target. All financial and other terms were settled privately and will remain confidential, according to Rubensteins lawyer, Sandy Ain, and Rogoffs lawyer, Linda Ravdin. . She is a well-known woman of her respective department who established the "Alaska House." which is situated in New York. (Washington Post photo by Jahi Chikwendiu) In 2014, Rubensteins then-wife helped elect a governor in Alaska who in turn opened up the states $80 billion Permanent Fund, a fraction of which is managed by the Carlyle Group, to special interests. According to David, Kennedys famous statement Ask not what your country can do for you, ask what you can do for your country struck a chord with him, hence, his aspiration to serve in public office. The philanthropist couple had been married since 1983, but have now officially and legally divorced. Give the hippos control., When I go see a big pile of rocks, I want to be entertained., Ive never actually stormed a castle, but Ive taken a bunch of siege-management courses., Fulfillment: America in the Shadow of Amazon. Alaskan residents receive yearly dividend checks that typically range anywhere from $800 to $3,200. And this is, ultimately, a family decision. The wealthy benefit the most, because they are deducting income that would otherwise be taxed at the highest personal rate. The couple divorced on December 8, 2017. With Smith and his wife, Rogoff traveled around Alaska, meeting its people. This piece is a collaboration between The New Yorker and ProPublica. Though Carlyle was not accused of any wrongdoing, it agreed to pay twenty million dollars to resolve the matter. Marco Rubio, whose chief campaign fund-raiser is Wayne Berman, now the head of Blackstones in-house lobbying operation, is proposing to do away with capital-gains taxes entirely. In 1990, Carlyle put George W. Bush, who had just left the oil business in Texas, on the Caterair board. (She lives part time in Anchorage.). [Whats this Washington insider and billionaires wife doing in Alaska?]. Government models assume that private-equity firms would find ways to keep categorizing their incomes as capital gains, even once the loophole was closed. We laughed at him, like, Yeah, right.. The partners took 1% of the transaction for themselves and juiced a billion dollars of losses through the system., That Eskimo money fueled the rise of the fledgling Carlyle Group, which today manages more than $325 billion worth of assets on six continents and is one of the largest private equity firms in the world. On a rainy Halloween in New York City, in a 33rd-floor conference room at the Carlyle Group, the investment giant Rubenstein co-founded, the interviewer sits down to be interviewed.. At . In June of 2007, Levin produced a more sweeping bill, which became the model for future reform attempts. He almost never spoke to the press. "The parties continue in support of one another and their respective endeavors. In 2014, Rubenstein's then-wife helped elect a governor in Alaska who in turn opened up the state's $80 billion Permanent Fund, a fraction of which is managed by the Carlyle Group, to special. Rubenstein, who no longer has to contend with any real attempts to close the loophole, has little to gain by insisting that it be retained. I got to the point where I realized I had more money than I obviously needed, or I didnt want to ruin my childrens life by giving them too much.. Roxanne Roberts is a reporter covering Washington's social, political and philanthropic power brokers. Every few months, he funds a bipartisan dinner salon for senators and representatives at the Library of Congress, where he interviews a prominent Presidential historian, such as David McCullough, Ron Chernow, or Doris Kearns Goodwin. (Although he has also donated generously to hospitals, universities, and other traditional beneficiaries, more than half of the several hundred million dollars he has given away fits the patriotic theme.). These members of Congress dont even know theyre being lobbied., Recently, I spoke with Morris Pearl, who in 2014 retired as a managing director at BlackRock, the asset-management firm, to become chairman of the Patriotic Millionaires, a group of wealthy advocates for higher taxes on the rich, which was organized in 2010. The Rubensteins never discussed their marriage in public. After a few minutes, Shapiro recalls, Rubenstein returned and said, That was a senator. [13][14] Rogoff and her ex-husband have funded the participation by Juneau, Alaska in the Any Given Child program, which promotes arts in education. The Carlyle Group began managing assets in the Permanent Fund in 2005 and now manages just under $1 billion of the fund, according to public records. This book has records of interviews with historians as they tell stories on their areas of historical expertise. David M. Rubenstein and his wife, Alice Rogoff, at the 2016 Kennedy Center Honors at the Kennedy Center. In September of that year, Rubenstein founded the Carlyle Group, with Norris; Dan DAniello, of Marriott; and William Conway, of the telecom giant M.C.I. Whats this Washington insider and billionaires wife doing in Alaska. Legal work bored him, and he was in touch with friends from his days at the White House who were prospering in business. Zell Kravinsky gave away millions. The transaction placed Alaska's largest newspaper under the control of Rogoff and the Alaska Dispatch. She subsequently learned to fly an airplane herself. At that time, Carlyle and other firms were preparing public offerings, and the industry lobby seized on a little-discussed element of the reform efforts: the enterprise-value tax, in private-equity parlance. In legislative circles, he is among the foremost authorities on the issue. But his start in business was less elegant. Asked to comment, he said through a spokeswoman that he does not recall much about this given it was six years ago., The debate unfolded on the floor of the Senate. Twitter: @BiographyScoop The wealthy duo separated back in 2005. The firm was named for the New York hotel, to evoke old-money grandeur. Rubenstein and Norris spotted the window of opportunity and jumped through., Norris and Rubenstein had no trouble finding needy Eskimos, said one report at the time. Mandi is an experienced writer on various topics with a passion for telling stories with words. He was previously married to Alice Rubenstein from May 21, 1983, when the two wed, to December 8, 2017, when their divorce was finalized. Around the same time, Sander Levin, a Michigan Democrat on the House Ways and Means Committee, learned about the loophole, at a dinner with his wife and an old law-school friend, who had become a tax attorney. Rubenstein was there to receive the Carnegie Medal of Philanthropy, along with seven others, including Microsofts co-founder Paul Allen and the Utah industrialist Jon Huntsman, Sr. Rubenstein roamed around the vast Celeste Bartos Forum, hands in his pockets, with the proprietary air of a man at his daughters wedding. Heres a guy who has taken advantage of other people to climb to the top while he expects perfection from the Founding Fathers, Dan Fagan, a talk show host and journalist who covered Alaska for 25 years, told The Post. [5] While visiting the Smiths, she bought a home in Anchorage. Originally designed to distribute dividends based on five-year averages, Walker vetoed that rule and turned the decision over how to disperse the monies to state lawmakers. Ousted CNN boss Jeff Zucker's ex-wife Caryn appears to be dating private equity billionaire David Rubenstein, sources tell DailyMail.com. Rogoff, 66, most recently published Alaska Dispatch News in Alaska, where she has lived for several years. He took up a newspaper one day and he was reading an article, he read about how William Simon, former U.S. Deputy Treasury Secretary, bought Gibson Greeting Cards with $79 million worth of debt and $1 million of his own money in a leveraged buyout.