Romney tax returns highlight tax code's breaks for rich

[Better Believe It]

Romney tax returns highlight tax code's breaks for rich
Mitt Romney incurred a much lower rate than the average taxpayer for the $40 million he earned in the last two years.
By Ralph Vartabedian, Tom Hamburger and Matea Gold
January 24, 2012

Reporting from Los Angeles and Washington— Republican presidential candidate Mitt Romney's tax returns reveal a sophisticated low-tax investment strategy that includes offshore funds and a now-shuttered Swiss bank account, contributing to a fortune that has emerged as a potential liability in his quest for the White House.

Romney and his wife, Ann, reported more than $40 million in income in the last two years, partly from their investments in foreign jurisdictions long considered tax havens, including the Cayman Islands, Bermuda and Ireland. Campaign officials say Romney gained no tax advantage from those overseas investments.

The documents underscore how Romney, the wealthiest candidate to seek the presidency in recent history, has benefited from a tax code that lets investors pay taxes at a much lower rate than people who earn wages or salaries.

It is impossible to tell how much of Romney's fortune, which his campaign estimates at between $190 million and $250 million, comes from his holdings in offshore funds and institutions. The Romneys' joint 2010 return includes 32 pages of detail on 17 separate "passive foreign" investments made by the couple.

Read the full article at:

http://www.latimes.com/news/nationworld/nation/la-na-romney-tax-20120125,0,5766212,full.story

[phantom power]

1. the golden rule: them that have the gold make the rules