Romney Parks Millions in Offshore Tax Haven

ABC News ^

[Sub-Driver]

Romney Parks Millions in Offshore Tax Haven

By MATTHEW MOSK, BRIAN ROSS (@brianross) and MEGAN CHUCHMACH (@megcourtney) Jan. 18, 2012

Although it is not apparent on his financial disclosure form, Mitt Romney has millions of dollars of his personal wealth in investment funds set up in the Cayman Islands, a notorious Caribbean tax haven.

A spokesperson for the Romney campaign says Romney follows all tax laws and he would pay the same in taxes regardless of where the funds are based.

As the race for the Republican nomination heats up, Mitt Romney is finding it increasingly difficult to maintain a shroud of secrecy around the details about his vast personal wealth, including, as ABC News has discovered, his investment in funds located offshore and his ability to pay a lower tax rate.

"His personal finances are a poster child of what's wrong with the American tax system," said Jack Blum, a Washington lawyer who is an authority on tax enforcement and offshore banking.

[Chgogal]

LOL

But still MSM should know the difference between income tax and capital gains tax. They are confusing the two and it annoys the heck out of me.

[Jim Robinson]

And I’m in favor of reducing Romney’s capital gain tax to zero! Go, Newt!!

Keep Romney wealthy, unemployed and paying NO taxes!!

[greyfoxx39]

Romney says he pays 15% income tax, but pushes for a 35% tax rate for the “wealthy.” Then hides his own wealth offshore in tax havens?

But, according to many FReepers that's perfectly all right. I think it morally sucks!

[Terry Mross]

I don’t have a problem with anyone legally avoiding taxes.

[Chgogal]

You should be running for POTUS. Can you imagine the economic growth this country would witness if the Capital Gains Tax went to 0?.

Since you are not, I will go for Newt as well. I am looking for the whipping Obama will experience at Newt hands.

[livius]

It used to be illegal for Americans to deposit money with some of these things, because they were basically tax scams, although I don’t believe it’s illegal anymore. And while I think taxes are way too high, if I have to pay them from my modest income in the US, I think somebody who made his huge income here in the US should have to pay them, too...but the Cayman Islands were where you went not to pay them. This is the reason Romney does not want to release his returns.

It’s all perfectly legal, but offshoring your huge fortune sure doesn’t make you look good.

[livius]

Great way of putting it! I love it!

[sand88]

Politics is a blood sport. Regardless whether what he did was legal, moral or ethical to do, if this can be used to destroy Romney's chances, then good. I want him out.

Mitt would use any lie or smear to destroy Conservatives.

[SJackson]

Romney says he pays 15% income tax, but pushes for a 35% tax rate for the “wealthy.” Then hides his own wealth offshore in tax havens?

Not likely, my guess the income is coming from Bain partnerships set up offshore to avoid regulation, likely given relatively small numbers of investors. My guess the issue which will be raised is that of carried interest. You and I work and pay 35%. Not just Mitt, but many who manage not just venture capital but also real estate partnerships accumulate their wealth from performance incentives, typically in the 20% to 30% range, which is taxed at 15%, as though it were capital. Intellectual capital I suppose, fully taxed for everyone else. Nothing illegal or hidden, nothing to do with tax havens. Just the tax code as written. IMO, labor shouldn't be taxed more than capital, quite possible under a flatter tax code, but that's just me. This will be a problem in the general, he's not John Theresa Heinz Kerry who I think paid at about a 12% rate. There's a reason so many of the mega wealthy are on the left, just ask Warren Buffet.

[SJackson]

It used to be illegal for Americans to deposit money with some of these things, because they were basically tax scams, although I don’t believe it’s illegal anymore.

With minor exceptions, Americans pay taxes on earnings everywhere in the world under American law. I suspect this is more a function of bypassing security regulations. You're correct, it doesn't look good.

[Rome2000]

The MSM is not reporting this, only ABC.

Could be an attempt to try to seem neutral given the fact they are about to unleash a hell on Gingrich not seen since CBS and Dan Rather forged documents to try and destroy Bush.

The media engages in political assassination, and get off scott free, in the USA.

In Russia, it's a two way street, and the twerps in the "newsrooms" think twice before they try to take someone out, lest something unfortunate happen to them.

[JimSEA]

Romney’s taxes are, apparently on capital gains and interest. Of course many Democrats have demanded up to 38% taxes on these income sources. Social justice some say. Now I and many other retirees pay rates similar to Romney and would be totally destroyed by the higher rates. Not to mention the negative impact on an economy in recession or depression that the “more fair” higher tax rates would have in drying up investment potential. The fair thing here is to demonize Romney on the one side and bankrupt retirees for social justice on the other side. Something to love for everyone here.

[cdnerds]

It doesn't mean anything unless he can be connected to fraud itself. If he is paying tax on all his income including any profits made from this fund - then it no big deal. If Coca Cola headquarters are in the islands and I own stock - does that mean im a tax dodger now? Sorry this is a none starter.

[Praxeologue]

Bain's funds are domiciled in Cayman, in my view, to permit foreign investors to evade (a) tax obligations, (b) currency controls, or (c) creditors in their home jurisdictions, should they decide against reporting their holdings in or their income from those funds. I doubt that there was any intention of permitting their U.S. resident beneficiaries to evade U.S. taxation on income from their interest in these funds. A U.S. resident would legally avoid some, but not much, taxation, resulting in a lower effective tax rate, by holding their assets through a Cayman entity. If the object is to lower the effective tax rate, however, there are more favorable jurisdictions for U.S. residents. The primary attraction of Cayman is its secrecy law.

[Grunthor]

Now, would that be the money that he made off of the dead babies?

[Sub-Driver]

Good point. Not common knowledge but regardless....OF course the MSM will not report on that aspect. Nor where Nancy Pelois’s $$ is stashed.....

The Federal Government at this juncture doesn’t deserve our rewards.......it’s his money and he can do with what he wishes.

[Grunthor]

“Sorry this is a none starter.”

Ok, how about this;

http://www.huffingtonpost.com/2012/01/17/mitt-romney-bain-capital-stericycle_n_1211228.html

Does THIS mean anything to you?

[bobsunshine]

It is interesting to see how some get their talking points from MSNBC. We all pay 15% on our investment income (you, Biden, Mitt, Newt, Obama, etc.) so comparing it your 401K withdrawal, which is not investment income, is truly bogas. Second, you put your 401K monies in tax free. You could convert the 401K monies to a Roth IRA then your investment income would be zero. Now what.

When making statements like this, it would best to be correct with the logic versus repeating what Joe on MSNBC said.

[Oldeconomybuyer]

“a notorious Carribean tax haven...”

Or a perfectly legal tax haven that I would expect a smart money manager like Romney to employ.

WHERE ARE OBAMA’S SCHOOL RECORDS INCLUDING HIS APPLICATION AND GRADES?

[Boardwalk]

How convenient.