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| GOP presidential candidate Mitt Romney (Photo: ABC) |
Offshore tax havens cost the US $100 billion in lost revenue every year.
We already know Mitt Romney has multiple investments in the Cayman Islands, which critics have claimed shield a portion of his finances from the US Treasury.
On Friday Rachel Maddow put it memorably: 'Maybe the money just likes the nice view…'
The Romney campaign say he isn't avoiding taxes, because 'the investments by the blind trusts in funds established in the Cayman Islands or other jurisdictions are taxed in the very same way they would be if the shares were held in the US…'
Perhaps, but the taxes you dodge by parking your stash in the Caymans aren't personal income taxes, they're your offshore investment funds’ corporate taxes.
So the Romney's aren't evading income taxes by placing money in the Caymans - rather the funds they deposit their money into evade taxes by being situated in the Cayman Islands.
It would be funny, I suppose, if last week the nation had not watched him tell a room full of his fellow multimillionaires that almost half the citizens of the United States are dependents and deadbeats for failing to pay their full share of taxes!
That video revealed Romney as the kind of man who loudly scolds others for actions he apparently practices himself.
Democrats have hammered him for his inconsistencies and contradictions on the subject, but Republicans dismiss them all and insist they don't matter.
If they don't matter though, why are there everywhere in the news?
On Friday the Romney campaign revealed he paid $1.9 million in taxes on $13.7 million of income in 2011, which is a 14.1 percent rate. Since most of his income comes from his investments it's taxed at a top rate of 15 percent, rather than the top rate of 35 percent for wages. Remember that 13 or 14 percent tax rates are tax levels that most ordinary working stiffs can only dream of.
You may also be interested to know that corporate taxes have dropped from 32 percent in 1952 to less than just 9 percent today. But payroll taxes have risen from 10 percent of federal revenue in 1952 to 40 percent now. It’s the best of times, it’s the worst of times.
For American billionaires there’s no doubt it’s the best of all possible worlds and the outlook keeps brightening, but Romney wants to comfort the already supremely comfortable with an even bigger tax cut bonanza whilst telling the 47% they'll have to cut back soon.
Democrats aren't proposing massive tax cuts for the rich, to be paid for by closing unspecified loopholes and deductions - so one can only wonder will the deductions Romney's proposes to close be ones that middle class families rely on? We don't know yet, he hasn't said.
As he often does, Bill Clinton summed it up best on Face the Nation: 'I don’t think we can get out of this hole we're in if people at that income level only pay 13, 14 percent.'
Clinton isn't kidding. Offshore tax havens cost the US $100 billion in lost revenue every year, $1 trillion over the last decade. In 2010 making up for this lost revenue cost the average U.S. tax filer $434.
In 2009 President Obama launched a major initiative against overseas tax havens with new tax laws, new reporting requirements and an ongoing investigation by 800 new IRS agents. Obama sees it as a problem.
Want to bet that'll continue under Romney?
43 Comments
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Switch to the desktop site to post a comment.| Sep 28, 2012, 08:11 PM EDT
No, just a bump in the road.
McNamara31 | Sep 28, 2012, 11:48 AM EDT
Maggie47 |There is a huge difference between an outright lie like the one that sent us to war in Iraq and an administration taking the proper time to gather facts when the entire Middle East was in flames and protest. But facts and reason don't suit you anti Obama narrative do they?
BrianO | Sep 28, 2012, 10:30 AM EDT
I tried to list quotes of B.O but his words were not allowed on. Don't want the people to know what B.O says I guess.
seanomelb | Sep 27, 2012, 12:29 AM EDT
carlaba blah!blah! blah! stupid inane comments.
seanomelb | Sep 26, 2012, 07:15 PM EDT
Exactly my sentiments!! but tell me!! why is the GOP trying to usurp peoples right to vote by passing regressive legislation to do so. I sure hope people know what they are voting for,as you put it.
Maggie47 | Sep 26, 2012, 06:31 PM EDT
Mr McNamara, the facts are out, or you still in denial? the president admitted today that indeed it was a terrorist attack. Or do you really believe that it was an angry mob walking around with RPG's in their pocket? I await your apology.
BrianO | Sep 26, 2012, 09:59 AM EDT
Seano, if you believe the obama propaganda then you would be right, I am absurd, I simply believe in the individual and freedom, But there comes a time to choose, and I again simply want people to know what they are voting for. Once your freedom is usurped it is a very hard and bloody thing to get back. I know you and the other statists won't be swayed and again I thank you for the personal attacks and demeaning insults.
EphraimKibbey | Sep 26, 2012, 02:00 AM EDT
A Romney quote: "Blind trusts are a ruse because you always tell the trustee what he can and can't do." What about the Chinese National Oceanic Oil Company stock that Romney dumped just before declaring his bid for the Presidency? That outfit tried to buy a California oil company with drilling rights in the Gulf and partnered with the Iranian government to develop energy resources there. The Iranians better watch out as the spokesman for this Chinese Government owned company has declared its property as mobile territorial claims giving Chinese sovereignty to wherever they are located. I guess Romney thought that it it was OK to turn the Gulf over to the Chinese as long as he made a buck off of the deal.
runfar | Sep 26, 2012, 01:59 AM EDT
Only an idiot would pay more taxes than he has to.....love of country is great but preserving your family is important to and you do that by providing for them and not stupidly paying more taxes than you should.
seanomelb | Sep 25, 2012, 11:41 PM EDT
bonjourall!! slain leat
seanomelb | Sep 25, 2012, 07:43 PM EDT
Briano your posts are becoming absurd,whats happened??
BigDaddy | Sep 25, 2012, 06:31 PM EDT
BrianO...how is it that you know what motivates others?
McNamara31 | Sep 25, 2012, 03:04 PM EDT
Maggie47 "The Obama admin. lied to us tried to blame it on some movie" Your lack of facts is incredible,totally false and stupid (your words). The movie (created by a Coptic Christian) caused the angry mobs to gather outside the Egyptian Embassy which then spread across the entire Middle East and Pakistan.
hollabackgurl | Sep 25, 2012, 02:08 PM EDT
The issue isn't that Romney off-shores his jobs, wealth and taxes. The issue is that he does it to avoid his US obligations. People are free to make whatever arrangements, but when they scold half the country for things they do themselves they forfeit the right to lead the country.
Maggie47 | Sep 25, 2012, 12:37 PM EDT
We've heard about the Romney "Gaffe" Now I want to hear about the Obama "Gaffe" that he made this morning.
Maggie47 | Sep 25, 2012, 12:23 PM EDT
Cahir, I don't see anything in your article about Mr. Romney's charity Kathleen, The Obama admin. lied to us tried to blame it on some movie. Does he really think the american people are that stupid?
KathleenBerrio | Sep 25, 2012, 10:53 AM EDT
BrianO Romney's 13.5 % donations go to the Mormon Church, by his admission. Is that a donation or a tithe ? Romney was first to criticize Obama for the attack on the Libyan consulate even before he had all the information about it.
BrianO | Sep 25, 2012, 10:21 AM EDT
It is time for you to question obama, fast and furious resulted in civilian deaths, the embassy assassinations have been the basis of a watergate type coverup, there comes a time where even far leftist must rethink their blind allegiance.
BrianO | Sep 25, 2012, 10:16 AM EDT
I know the pro obama forces hate all that is of free markets and wealth creating, these people make the money that is taxed to pay for your government based programs, the percentages are based on the law. Romney may represent everything you dislike, He is from an entrepreneurial family, he donated his inheritance to charity, he used his skills and resources to become a multi millionaire, he is married to the same woman, he has a good family, over the last 20 years Romney has averaged 13.5% of his income to charity, yes he believes in charity and follows his beliefs you know putting your money where your mouth is. The problem the Obama ites have is that can't control those donations.
McNamara31 | Sep 25, 2012, 09:31 AM EDT
mairint Again you smear the President with your statements, when you know all too well that in his speech at Notre Dame he stated:"let's work together to reduce the number of women seeking abortions by reducing unintended pregnancies, and making adoption more available, and providing care and support for women who do carry their child to term" And further, Roe vs Wade was passed by a majority Republican appointed Supreme Court during the Nixon presidency.And as for Romney, if a venture capitalist who made a majority of his money at the cost of middle class worker jobs (and who was strongly for abortion before he wasn't for abortion) I'd question my reasoning.
eiriamach | Sep 25, 2012, 07:05 AM EDT
About two thirds of the comments below are intolerant, insulting, or complaining. What's "Irish" about insults, complaints, and intolerance? It's an Irish tradition to acquire some facility with facts and debate, but all I see in the complainers here is fact-free, mean-spirited growling. They seem so desperate!
hollabackgurl | Sep 24, 2012, 11:08 PM EDT
Mitt Romney is the rocket man from the Planet Kolub. He's Satan's brother and Jesus's brother too. He's a man on his way to becoming a God. He believes in lying for the Lord. And that black welfare moms are cured by God. See, Marint, anyone can demagogue.
The Commentator | Sep 24, 2012, 10:44 PM EDT
The Republicans are out to benefit themselves. Perhaps many of them who are not already wealthy are hoping for tips from Romney on how to avoid taxes and invest offshore. Hopefully Obama will somehow prevail and the Democrats gain control of the house and senate and pass meaningful tax laws to ensure the working class who now pay much higher rates than the rich, have their taxes lowered and the rich have the loopholes eliminated so they pay more than the poor and middle class. It's pretty strange that Romney's reported income dropped from almost 22 million dollars in 2010 to 13.7 in 2011. How could someone so fiscally irresponsible be qualified to be president? One would think that a money master like him would have been able to maintain his income. Oh, wait a minute, he must be deferring or manipulating his money so he doesn't have to pay taxes like the honest working class of Americans. Don't worry about him, I'm sure he will find a way to pay much less taxes if he becomes president. Maybe he will become a Latino for 2016 if he doesn't win the election this year.
jbradley12 | Sep 24, 2012, 07:51 PM EDT
In 1900, Mark Twain said; "There are two kinds of Republicans --- millionaires and fools." The millionaires of 1900 are the billionaires of today. I'll tell you one thin and thats not two things --- Mark Twain knew what he was talking about.
seanomelb | Sep 24, 2012, 06:40 PM EDT
The teabaggers below fail to justify Romney's tax havens so they turn on Obama with their nonsensical slurs.
Pittsburghkid | Sep 24, 2012, 06:10 PM EDT
Romney gave 4 million dollars to charity, which is better then giving money to the government.
hollabackgurl | Sep 24, 2012, 04:10 PM EDT
mikehoulihan calls Obama the abortion president and then expects his opinions to be taken seriously. The rest seem to only want to silence and insult the people they disagree with rather than learn something. They're perfect examples of the Teabag mentality.
jflanagan | Sep 24, 2012, 03:14 PM EDT
It's a good thing these guys only write for a living. If we had to rely on them to run a business and create jobs, the out of control unemployment rate would be at 30% most likely.
borefield | Sep 24, 2012, 01:10 PM EDT
Mickey74007 you are so right. I am really thinking of taking I C off my emails as the left wing spewing is getting really annoying. There are so many good Irish based newsletters out there with wonderful cultural and historic news. IC has second rate story tellers, I can't call them journalists because most 7th. Graders would do as good or better
hollabackgurl | Sep 24, 2012, 12:59 PM EDT
Imagine the 'un-American' howls of protest from the right if President Obama had parked a cent of his money in the Cayman Islands? They need to be consistent.
FastEddy | Sep 24, 2012, 11:57 AM EDT
Mmmm ... And the same should be said for General Electric, Apple, Intel, Conoco, Shell & BP, all of the oil tanker shipping companies, IBM, Oracle ... As long as we are talking taxes and tax havens, it would appear that this Irish spew would better be directed elsewhere, since the United Kingdom is a significant beneficiary of these accounting manipulations ... The Isle of Mann is the tax haven hot spot for International Big Business ... To a lesser extent, Ireland used to be ... Then Big Banking and Big Irish G'ment spoiled that mix with higher taxes, killing the Celtic Tiger, RIP.
micky74007 | Sep 24, 2012, 11:39 AM EDT
reading this forum is beginning to be a waste of time--if I want to read left wing bullshit I can read the NY Times. This site is becoming less and less Irish centered and more an arm of the obama slime factory.
wjb1tex | Sep 24, 2012, 11:31 AM EDT
stmungo | Sep 24, 2012, 11:01 AM EDT If you say they are all lies where is your proof? Niall researches his articles ,do you. -------------------------------------- If one makes a statement it is up to them to prove it. Not up to others to provide proof that it is wrong.
EileenOfarrell | Sep 24, 2012, 11:25 AM EDT
Sounds like Mr. O'Doherty is jealous of Governor Romney's financial success. Have you checked out where President N'Obama keeps all his funds?
weeknocky | Sep 24, 2012, 11:01 AM EDT
Romney did not make the laws concerning off-shore investment. Many US politicians have off-shore accounts. If they were truly concerned about this non-issue they would go after the people that make the rules, not the candidate. It is a non-issue for Romney.
stmungo | Sep 24, 2012, 11:01 AM EDT
If you say they are all lies where is your proof? Niall researches his articles ,do you.
torbreezy | Sep 24, 2012, 10:56 AM EDT
Why is this article being published here? It is certainly not "IRISH" nor is it "CENTRAL" to "Irish" matters. This article serves no useful purpose other than to reaffirm the author's bias and incite those who see things differently.
mikehoulihan | Sep 24, 2012, 10:29 AM EDT
More lies from Niall O'Dowd and Irish Central. You have zero credibility.
wjb1tex | Sep 24, 2012, 10:29 AM EDT
"If they don't matter though, why are there everywhere in the news?" The answer is obvious to all the viewers, readers, and listeners of mainstream media.
kelauggie1 | Sep 24, 2012, 09:56 AM EDT
The headline makes it sound like Romney is a big part of the taxes lost due to tax shelters, when in fact he pays taxes on his blind trust investments. Meanwhile, Obama destroys the US from within, and the democrat sheeple just blindly follow him over the cliff. I agree - this site spends much too much time swinging left - where is the right slant on this pendulum???
tom/peggy | Sep 24, 2012, 09:24 AM EDT
Charitable deductions just another Romney tax haven. It's JOBS Mr. President! I would like Mr. O'Doherty to explain why the President's plan to extend (for ONE year) the Bush tax cuts for those making less than $200,000. Why not make them permanent?
olovely | Sep 24, 2012, 08:57 AM EDT
If you can't deny the points attack the messenger, eh Smyrnian? Do you deny the US loses 100 billion a year to these off-shore accounts? Do you think that's patriotic?
Smyrnian | Sep 24, 2012, 08:06 AM EDT
Irish Central just LOVES anything left, liberal, democratic, Obama and absolutely anything related to Christine Quinn. Sickeningly predictable slant to all it's political articles. Where is the balance?