Mittens becomes more unelectable by the day: $8 million in the Cayman islands

[Lief]

http://abcnews.go.com/Blotter/romney-parks-millions-offshore-tax-haven/story?id=15378566#.TxeyP-Bk34h

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.

On Tuesday, Romney disclosed that he has been paying a far lower percentage in taxes than most Americans, around 15 percent of his annual earnings. It has been Romney's Republican rivals who have driven the tax issue onto center stage. For weeks, Romney has cited a desire for privacy as his reason for not sharing his tax returns -- a gesture of transparency that is now expected from presidential contenders.

"I can tell you we follow the tax laws," he said recently while on the campaign trail in New Hampshire. "And if there's an opportunity to save taxes, we like anybody else in this country will follow that opportunity."

But tax experts tell ABC News there are other reasons Romney may not want the public viewing his returns. As one of the wealthiest candidates to run for president in recent times, Romney has used a variety of techniques to help minimize the taxes on his estimated $250 million fortune. In addition to paying the lower tax rate on his investment income, Romney has as much as $8 million invested in at least 12 funds listed on a Cayman Islands registry. Another investment, which Romney reports as being worth between $5 million and $25 million, shows up on securities records as having been domiciled in the Caymans.

[TheDeadFlagBlues]

I made this commemorative jpeg in honor of this occasion:

[redcommander]

This isn't illegal. Leave it to liberals to attack someone on how much wealth they have.

[Likely Voter]

I suspect they are going to do everything they can for this year's return to minimize the negative reaction. The question is, will Mitt release returns for the last few years (as Obama has done and as his own father did when he ran for President).

[CultureKing]

This isn't illegal. Leave it to liberals to attack someone on how much wealth they have.

No, it's not illegal. In fact it may not be necessarily a bad practice. However it would be a good idea to investigate such claims when the person in question may lead the entire nation. Wealth also does have a measurable impact on how people act and hold themselves (although I am not sure if it's a positive one or a negative one necessarily).

[Governor NVGonzalez]

They say that opening Romney's tax returns is more dangerous than Pandora's box and will melt your face. Chuck Norris won't even do it.

[Landslide Lyndon]

This isn't illegal.

Neither is burning the American flag but I doubt it helps your electability much.

[GLPman]

I anxiously await the day Lief has an unbiased post about the 2012 election.

[5280/East California]

I made this commemorative jpeg in honor of this occasion:

4 more years of unemployment above 8-10% with Obama in office and more food stamps for the dependent. Democrats always having to make wealth look bad, when it's not.

[All life is a blur of Republicans and meat.]

I made this commemorative jpeg in honor of this occasion:

4 more years of unemployment above 8-10% with Obama in office and more food stamps for the dependent. Democrats always having to make wealth look bad, when it's not.

Why are you trying to make food stamps look bad? They help people in need!

[5280/East California]

I made this commemorative jpeg in honor of this occasion:

4 more years of unemployment above 8-10% with Obama in office and more food stamps for the dependent. Democrats always having to make wealth look bad, when it's not.

Why are you trying to make food stamps look bad? They help people in need!

My sister is on them right now, and she clearly doesn't need them. Im not stating why she doesn't need them, she's already making enough money as is without.

[Politico]

Romney follows the tax laws and, like everybody else, finds a way to lower his tax burden whenever possible. Nice smear job on trying to tie him into the Cayman Islands, though.

Of course, this is all too complex for people who think the world owes them a living. These type of people see Romney's wealth and think they are entitled to a piece of it. Good luck with that.

[Landslide Lyndon]

Romney follows the tax laws and, like everybody else, finds a way to lower his tax burden whenever possible. Nice smear job on trying to tie him into the Cayman Islands, though.

Of course, this is all too complex for people who think the world owes them a living. These type of people see Romney's wealth and think they are entitled to it. Good luck with that.

"I'm Mitt Romney and I approve this message".

[Marston]

I made this commemorative jpeg in honor of this occasion:

4 more years of unemployment above 8-10% with Obama in office and more food stamps for the dependent. Democrats always having to make wealth look bad, when it's not.

Why are you trying to make food stamps look bad? They help people in need!

My sister is on them right now, and she clearly doesn't need them. Im not stating why she doesn't need them, she's already making enough money as is without.

In regards to significant public policy issues, I'm really not persuaded by arguments that start with "My sister...", "My friend...", "My cousin...", "My mom...", etc. Anecdotes only really get you so far. 

[JohnnyLongtorso]

I like how the response to every negative story about Romney is "LA LA LA IT'S NOT ILLEGAL YOU'RE JUST JEALOUS".

[Free Palestine]

It's pretty much a given that every rich person in America has money in the Caymans.

[TXMichael]

This isn't illegal. Leave it to liberals to attack someone on how much wealth they have.

I don't "attack" people because they are wealthy.  I call them out when they aren't paying their taxes. 

[Simfan34]

It's pretty much a given that every rich person in America has money in the Caymans.

Yes, but that doesn't make it right.

[Free Palestine]

It's pretty much a given that every rich person in America has money in the Caymans.

Yes, but that doesn't make it right.

Never said it was, good sir.  Remember you're talking to someone who would have supplied the Paris Commune with modern weaponry.

[Simfan34]

It's pretty much a given that every rich person in America has money in the Caymans.

Yes, but that doesn't make it right.

Never said it was, good sir.  Remember you're talking to someone who would have supplied the Paris Commune with modern weaponry.

Fair enough.

[asexual trans victimologist]

Romney follows the tax laws and, like everybody else, finds a way to lower his tax burden whenever possible. Nice smear job on trying to tie him into the Cayman Islands, though.

Of course, this is all too complex for people who think the world owes them a living. These type of people see Romney's wealth and think they are entitled to a piece of it. Good luck with that.

Thing is, nobody is entitled to Romney's wealth. Including Romney.

[Progressive Realist]

Somehow, I seriously doubt that having that kind of wealth during these particular economic times is a good thing for his Presidential prospects.

[Landslide Lyndon]

Oops!

http://blogs.wsj.com/washwire/2012/01/19/romney-iras-offshore-investments-helping-his-tax-bill/

Mitt Romney’s campaign has attacked an ABC News report on the candidate’s offshore investments, saying his holdings in the Cayman Islands and elsewhere have no effect on the amount he pays in U.S. taxes.

But the campaign’s assertions may be wrong or misleading. Tax experts said some of the offshore holdings are likely intended to help Mr. Romney avoid paying an obscure but hefty tax of as much as 35% on some of those investments, held in a tax-deferred retirement account.

[Progressive Realist]

Romney isn't paying the taxes he ought to be.

Hey Republicans, you do want to "broaden the tax base", don't ya?

[Torie]

The investment income earned in the Cayman Islands is subject to US tax. Th cash probably came from foreign offshore corporations, earning non investment income (you know, from factories and the like), which if repatriated would be subject to US tax. If all foreign subsidiary non passive income were taxed in the US immediately (no other nations does that), then over time, the US would have no US based corporations left which have significant activity, and employees, overseas, particularly as long as the US has the highest corporate tax rate in the world among the major economies (a tax which by the way has regressive aspects, since a portion of it is like a sales tax, passed on in higher prices).

But yes, this can't help Mitt much. It is all too complicated for Joe Six Pack. The trick is to find out if Obama thinks the laws should be changed here. If he does, then the point I made can be used as a riposte.

Addendum: Well if some of it is held in a retirement account, then it won't be taxed until withdrawn from the account, which is the law for everyone else as well. The issue is the taxation of the original principal as it were, and I explained the policy reason why non repatriated earnings from foreign subsidiaries are not subject to US tax.