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Romney Parks Millions in Cayman Islands

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Steve

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if this issue isn't vetted now, it will have to be dealt with later...

is Romney prepared to be president?

he has had at least four years to dress up his finances.. yet....

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.

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.

"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."


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.

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.

"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.

Tax experts agree that Romney remains subject to American taxes. 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.

The Los Angeles Times first disclosed Romney's offshore accounts in 2007, during his initial run for the presidency. ABC News found references to the firm's accounts in the Caymans in the footnotes of securities filings.
http://abcnews.go.com/Blotter/romney-parks-millions-offshore-tax-haven/story?id=15378566#.TxeAU2Gamwp

one would think that if it was an issue in 2007, Romney would have at least addressed the issue and cleaned it up....
 

Steve

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Faster horses said:
Didn't O'Rielly say it was legal tonight on "The Factor"?

legal verses a privilege of the wealthy?

I would prefer a leader who not only follows the laws of our country, but the spirit of the laws..



Citizens of the United States use Cayman as a tax haven for two purposes: tax evasion and tax avoidance.14 Tax evasion is the illegal hiding of income or assets for the purp ose of deceiving the U.S. Internal Revenue Service [hereinafter IRS].15 Tax avoidance is any legal measure used to lower actual tax liability.16 U.S. taxpayers routinely use Cayman for both reasons.17 The legal method of using the Cayman tax haven is to form a corporation under Cayman law and assign a stream of income to that corporation.18 The corporation, however, must have a legitimate business purpose other than the avoidance of taxes.19 Th e business purpose need not require Cayman as the location, but Cayman must be appropriate for the business purpose.

The line between tax avoidance and tax evasion can sometimes be very fuzzy.122 For example, a technically legal corporation may frustrate an IRS attempt to re-allocate its income by taking illegal advantage of Cayman secrecy laws.1
http://www.netatty.com/articles/tax.html

so if you do a little more work and have a larger stack of legal documents, you can shift from tax evasion to tax avoidance...
 

Tam

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Faster horses said:
Didn't O'Rielly say it was legal tonight on "The Factor"?

It might be legal but what does it look like when the President has got his money tucked away in a bank that is not subject to the same rules he is forcing on the voters. Facts are if this story is true then Romney is not fit to be President of the US of A. If Republicans defend this then they have no right saying anything about Kerry docking his yacht in a different state to avoid paying higher state tax in his home state, Or Jeffery Imelt hiding GE money in a foreign country while sitting on Obama's job creation board. This may be legal but it is WRONG for the President and if he is seriously thinking it is OK then he needs to rethink it. :roll:
 

beethoven

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steve-0 you beat me to it.

Disney btw is parent company to ABC and ABC News.

http://www.nytimes.com/2012/01/19/us/politics/romney-riches-are-being-seen-as-new-hurdle.html?_r=1&smid=tw-nytimesnational&seid=auto

Romney Riches Are Being Seen as New Hurdle
By NICHOLAS CONFESSORE, DAVID KOCIENIEWSKI and MICHAEL LUO
Published: January 18, 2012

With a fortune estimated to be as large as a quarter of a billion dollars, Mitt Romney is among the wealthiest men ever to run for president.

But attacks from Democrats and Republicans over his career in the leveraged buyout business and his reluctance to release his tax returns have underscored another central fact about Mr. Romney: The wealth that has helped underwrite his career in politics remains shrouded in considerable secrecy, which now poses a major political risk on the campaign trail.

Mr. Romney’s finances are complex and far-flung. He and his wife, Ann, have reported holdings in dozens of publicly traded companies, mutual funds and high-end investment partnerships, with much of their family wealth held in blind trusts that conceal their full size from public view. And Mr. Romney’s disclosure on Tuesday that he pays an effective tax rate of about 15 percent on his income focused new attention on some aspects of his finances, including his millions of dollars in donations to the Mormon Church and his continuing compensation from Bain Capital, the private equity firm he left more than a decade ago.

Just three days ahead of the South Carolina primary, Mr. Romney’s opponents on Wednesday vigorously exploited uncertainty about his finances by demanding that he release his tax returns before their party picks a nominee, while Democrats, previewing likely attacks in a general election campaign, accused Mr. Romney of having something to hide. The matter is also leading to more scrutiny of his tax proposals.

“We can’t fire our nominee in September,” Gov. Rick Perry of Texas said on Wednesday on “Fox and Friends.” “If we’ve got a flawed candidate going forward who’s going to get eaten alive either because of business practices or because of the taxes and the system that’s set up, we need to talk about it now.”

Whether the attacks will help or hurt Mr. Romney with voters remains to be seen. And Romney aides said privately that they were prepared for the attacks on Mr. Romney’s wealth, which they believe will backfire, aligning Mr. Romney’s critics with liberals and rallying more Republicans to his side. But even some allies of Mr. Romney’s raised concerns: Gov. Chris Christie of New Jersey, one of his top supporters, said in interviews on Wednesday morning that Mr. Romney should make the returns public “sooner rather than later.”

If there is one thing Mr. Romney has been consistent on over the years, however, it is taxes. In his campaigns for the United States Senate, governor of Massachusetts and president, he has never once released his tax returns — not even in 1994, when he made a major issue out of Senator Edward M. Kennedy’s refusal to release his own returns.

Mr. Romney has not pledged to release past returns, and the one he has suggested he would release, in April, is a work in progress. At the end of last year, he could have arranged to have some of his compensation deferred. There are a variety of mechanisms, like grantor retained annuity trusts, that athletes, entertainers and businesspeople routinely use to push their income and tax liability into the future and spread it out over years.

An examination of Mr. Romney’s public financial disclosures and other documents reveals some outlines of his wealth and potential tax liabilities.

Even if nearly all of his income was taxed at the 15 percent rate levied on dividends and long-term capital gains, Mr. Romney would be eligible to lower his tax bill by deducting charitable donations, property taxes, and state and local taxes.

Mr. Romney practices tithing, donating at least 10 percent of his income to the church, and he is entitled to deduct those contributions from his income. But Mr. Romney, who has had to contend with a bias that some voters harbor against Mormons, has said little about his millions of dollars in donations to the church.

Public records show that Mr. and Mrs. Romney have given $9.5 million to their family foundation since 1999. The foundation, in turn, has donated $4.7 million to the Church of Jesus Christ of Latter-day Saints, and $300,000 to Brigham Young University, which is Mr. Romney’s alma mater and is owned and operated by the church. The church contributions came in several large chunks, including $1.8 million in 2008 and $1.9 million in 2003.

In addition, records from the Securities and Exchange Commission show that the Mormon Church has reaped more than $13 million over the last 15 years by selling shares in companies that Bain Capital invested in, including Burger King Holdings and Domino’s.

(Page 2 of 2)

The Romney campaign said some of Mr. Romney’s tithing had been stock donations. But it is impossible to glean from the filings which shares were donated at Mr. Romney’s behest and which were donated by other Bain employees. (The company had several Mormon partners.) The shares the church sold included more than $700,000 in holdings in the DDi Corporation and American Pad and Paper, two companies that Bain invested in and that eventually filed for bankruptcy.

The church reaped the biggest gains from more than $4 million in shares in Wesley Jessen VisionCare, a maker of soft contact lenses, that it sold in the late 1990s, according to the S.E.C. filings. Bain invested $6 million in the company in 1995, an investment that was valued at more than $300 million at the end of 1999, according to a prospectus distributed by a division of Deutsche Bank Securities to potential investors.

The campaign declined to specify which donations, or what amount, had involved Mr. Romney. Bain’s donations of stock to the Mormon Church were first reported on Tuesday by ABC News.

In the financial disclosure forms that Mr. Romney has filed as Massachusetts governor and a presidential candidate, he has reported over the years that he has had a financial interest in funds like charitable remainder trusts, which in some instances can allow substantial tax deductions.

Mr. Romney’s campaign declined to answer questions about the tax implications of those trusts or to specify where he pays state income taxes and how much.

Properties owned by Mr. Romney have also paid more than $920,000 in local taxes since 2007, according to public records. Like all homeowners, the family appears to pay keen attention to its property tax bills. When billed for $134,909 in property taxes on their beachside home in San Diego in 2009, the Romneys appealed the assessment, according to an official at the city property assessor’s office.

Mr. and Mrs. Romney won the appeal. The bill was reduced by $9,617, for a total of $125,292.

Reporting was contributed by Stephanie Strom and Laurie Goodstein from New York, and Michael D. Shear and Kitty Bennett from Washington.
 

Tam

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If there is one thing Mr. Romney has been consistent on over the years, however, it is taxes. In his campaigns for the United States Senate, governor of Massachusetts and president, he has never once released his tax returns — not even in 1994, when he made a major issue out of Senator Edward M. Kennedy’s refusal to release his own returns.

The US has a President that refuses to release his private papers and the Republicans didn't like it so how can they back a Republican candidate that has a history of refuses to release his while demanding other do :? ?
 

hypocritexposer

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These are the types of things that the OWS movement and the obama campaign are working together on.......anybody that does not see why obama wants Romney as the the Republican nomination has not been listening to why OT wants a Romney nomination..........



....they want obama for another 4 years.....they want to totally destroy the US........they want the freebees, now that they are retired etc.......if Romney gets in, so be it, same result........
 

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