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Romney Paid US Tax Rate On Cayman Accts

A textbook exercise in disinformation from ABC News:

Romney Parks Millions in Cayman Islands

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

Not only does a spokesman say this, it is the truth. Which is a minor detail that ABC gets around to admitting in the twelfth paragraph of their 15 paragraph article. (See below.)

But ABC got the headlines they want. And they know most people won’t read past the headline and the lead paragraph.

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.

Really? What are they? (Hint: ABC does not name one.)

In addition to paying the lower tax rate on his investment income

That is not a technique to minimize taxes. Romney paid 15% on his investment income. And 15% is the maximum rate.

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

Since Americans do not get any reduction in taxes for having their money in Cayman Islands bank accounts, this is not a technique to "minimize taxes." So ABC offers no evidence that Romney used any techniques to minimize his taxes. They just made that up.

Official documents reviewed by ABC News show that Bain Capital, the private equity partnership Romney once ran, has set up some 138 secretive offshore funds in the Caymans.

Romney campaign officials and those at Bain Capital tell ABC News that the purpose of setting up those accounts in the Cayman Islands is to help attract money from foreign investors, and that the accounts provide no tax advantage to American investors like Romney. Romney, the campaign said, has paid all U.S. taxes on income derived from those investments.

"The tax consequences to the Romneys are the very same whether the fund is domiciled here or another country," a campaign official said in response to questions. "Gov. and Mrs. Romney have money invested in funds that the trustee has determined to be attractive investment opportunities, and those funds are domiciled wherever the fund sponsors happen to organize the funds."

Bain officials called the decision to locate some funds offshore routine, and a benefit only to foreign investors who do not want to be subjected to U.S. taxes

Does ABC News have anything to disprove this? If not, why have they run such a misleading article?

Tax experts agree that Romney remains subject to American taxes.

Again, ABC buried this admission, which makes their entire article moot, in the twelfth paragraph of their fifteen paragraph article.

This entire article is a lie. And ABC is lying to try to help the Democrat Party. Which could be one reason why our news media is hated even more than used car salesmen. Even more than Congress.

But they say the offshore accounts have provided him — and Bain — with other potential financial benefits, such as higher management fees and greater foreign interest, all at the expense of the U.S. Treasury

Oh, so you are stealing from the US Treasury if you get higher management fees and foreign interest? What a laugh.

Meanwhile, Reuters is claiming that Mr. Romney cheated on his taxes by giving millions to his church. What a scoundrel!

This article was posted by Steve on Thursday, January 19th, 2012. Comments are currently closed.

9 Responses to “Romney Paid US Tax Rate On Cayman Accts”

  1. River0 says:

    I’m fine with Romney’s handling of his own wealth, and I don’t particularly care where he wants to park his money. It doesn’t affect us as Americans. We are – I suspect – far more interested in what he can do to help us as a nation get back to sanity and on a track toward wealth. He has a good track record of rebuilding and managing large organizations.

    But I’m appalled that Romney is so unprepared to answer these obvious questions about income and tax rates; questions that everyone in his campaign HAD TO KNOW were coming. Is he surrounded by sycophants and toadies who never pressed him to be ready? It appears so. That’s inexcusable.

    • tranquil.night says:

      River, I agree that he keeps missing the chance for teachable moments everytime the Liberals recycle their templates on this. At the same time though I’ve finally come to understand that Liberals don’t drop something just because you repel it with logic. They’ll just keep trying to bait you. You can defend yourself every time, but soon even that becomes such to them that just by responding, you are engaging in and validating their rage, hate, and envy based premise.

    • JohnMG says:

      This is a story that isn’t.

      Now, following the rules makes you a scoundrel if you’re a Republican. How soon the media forgets Charlie Rangel who REALLY DID defraud the U S government of taxes by not even reporting his income from properties he held off-shore. (Oh, yeah. He’s a Democrat……a black Democrat, at that. You know, one of Holder’s people.)

      I don’t care where Romney has his money….or why. His taxes go to the government coffers just as do mine. Maybe if those IN CHARGE of government were as fastidious in fiscal matters we wouldn’t be in the mess we find ourselves. As near as I can tell, Romney is playing by the rules–out in the open for all to see, or I’m sure the MSM will find it out. Either that, or they’ll do a ‘Caining’ of him–guilt by inuendo.

      Most of you know I run a small business. I didn’t make the tax code, and certainly don’t think it fair and/or to my liking. But I’ll use every legal angle that is built into it to save a buck. Heaven knows I’ve suffered through the last three years like never before–even worse than during the Carter years. You can take this to the bank…..if Obama is re-elected, I’ll fold my tent. I will not endure four more years of working my butt off for nothing in return. But until then, if I can maximize my share of what I earn, that the government allows me to keep, by exploiting what loopholes the GOVERNMENT has built into the tax code, I intend to do so. And I’ve yet to see the color of the man who will call me a crook to my face for doing it.

      If that’s the substance of the criticism vis-a-vis Romney’s personal finances,, it’s pretty thin gruel!

  2. proreason says:

    Am I going to be arrested now for using a variety of techiques to minimize my taxes?

    I’m beginning to wonder if I should claim any exemptions or deductions.

    Perhaps it would be safer to give all my income directly to obamystan and just let them return to me a fair amount.

  3. proreason says:

    After thinking about this issue for awhile, I believe the underlying issue will become why the money was placed in the Cayman Islands if the taxes are the same. Romney is certainly telling the truth about the taxes, for himself, because if he wasn’t, it would end his campaign overnight..

    But people don’t put millions of dollars someplace by random chance.

    And if the answer is that the Caymans is where Bain (i.e., Romney) established the funds, then why there? Does BainRomney think that there is something wrong with keeping money in the US?

    The tax deflection won’t put the story to bed.

  4. merkelerk says:

    Pro, the reason for the Caymans was stated in the article…

    “Romney campaign officials and those at Bain Capital tell ABC News that the purpose of setting up those accounts in the Cayman Islands is to help attract money from foreign investors, and that the accounts provide no tax advantage to American investors like Romney. Romney, the campaign said, has paid all U.S. taxes on income derived from those investments.”

    Foreign investors benefit from the Cayman locale, thus the account was set up there to attract foreign investment.

    • proreason says:

      Who cares why Bain set the accounts up in the Caymans?

      Why did Romney put his money there? He says he didn’t do it to save taxes, so why did he do it?

      People don’t put eight million in a location by random chance.

      One account says that it was a blind trust. Well, Romney is the guy who thinks of everything, isn’t he? Wouldn’t it have occurred to him, or one of his hundreds of paid advisors, that stashing millions offshore would raise some eyebrows?

      Inquisitive minds want to know. There’s a reason and it isn’t “oh gee, I mindlessly took the advise of my advisor who had no idea that I might want to run for president some day even though I’ve been running every day for at least five years. And anyway, there really isn’t any difference between the Caymans and the US. And besides, I would blindly invest in what Bain does anywhere anytime.”

  5. sticks says:

    There is one and only one purpose in these kinds of articles and that is not to ferret out truth, but rather to fling as much mud at Romney (and Gingrich) as possible. to that end these snakes will lie their faces off, and no amount of evidence to the contrary will change their story one iota. Their purpose is to plant doubt in the minds of those people who, as Steve pointed out, will read only the headline and the first paragraph. That seed of doubt along with the media blitz about what an amazing man Obama is and how he is going to save our country from the ravages of George Bush (who caused all this mess) is their plan to swing the election to Obama, which is the only goal. So be ready for an all out propaganda war against all we know to be true, it’s only just begun.

  6. Reality Bytes says:

    Of Course He Did! It’s the Law. If you’re an American Citizen it doesn’t matter where you make your money. The law says you are to report it & pay taxes on it…unless your Charlie Rangel.

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