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

[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Addendum: Well if some of it is held in a retirement account, then it won't be taxed until withdrawn from the account, which is the law for everyone else as well.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.