10 Theories About What Mitt Romney's Really Hiding in Those Tax Returns

[Bill USA]

- Everyone knows it's something that would damage an already weak candidate, but nobody knows exactly what it is.

My guess is in one or more of the last ten years he probably payed no taxes (i.e. virtually nothing, like perhaps a few thousand dollars on millions of dollars in income)


http://www.alternet.org/election-2012/10-theories-about-what-mitt-romneys-really-hiding-those-tax-returns?akid=9175.263688.Ywrsth&rd=1&src=newsletter688211&t=3

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The Most Likely Explanation

Given Romney's refusal to release his returns, this kind of speculation is entirely predictable. But the most likely reason Romney doesn't want to release his returns is that they'll cast a bright light on the aggressive tax avoidance strategies the super-rich use every day – strategies David Cay Johnston outlined so well in his excellent book, Perfectly Legal . The Romney campaign keeps assuring us that he paid all taxes required by law, and that very well might be the problem.

A Vanity Fair investigation into the trickle of tax documents that Romney has disclosed – under intense pressure – found that they “provided a lavish smorgasbord for Romney’s critics. Particularly jarring were the Romneys’ many offshore accounts.”

To give but one example, there is a Bermuda-based entity called Sankaty High Yield Asset Investors Ltd., which has been described in securities filings as “a Bermuda corporation wholly owned by W. Mitt Romney.” It could be that Sankaty is an old vehicle with little importance, but Romney appears to have treated it rather carefully. He set it up in 1997, then transferred it to his wife’s newly created blind trust on January 1, 2003, the day before he was inaugurated as Massachusetts’s governor. The director and president of this entity is R. Bradford Malt, the trustee of the blind trust and Romney’s personal lawyer. Romney failed to list this entity on several financial disclosures, even though such a closely held entity would not qualify as an “excepted investment fund” that would not need to be on his disclosure forms. He finally included it on his 2010 tax return. Even after examining that return, we have no idea what is in this company, but it could be valuable, meaning that it is possible Romney’s wealth is even greater than previous estimates. While the Romneys’ spokespeople insist that the couple has paid all the taxes required by law, investments in tax havens such as Bermuda raise many questions, because they are in “jurisdictions where there is virtually no tax and virtually no compliance,” as one Miami-based offshore lawyer put it.

While James Wolcott thinks that it's “hardly a secret anymore” that “our tax code — and, indeed, our entire economic system — has been gamed to benefit the folks in Romney's economic stratum,” most people probably don't have a firm grasp on precisely how the vaunted “job creators” avoid paying their fair share, and the release of Romney's returns would offer a teachable moment.

As real estate billionaire Leona Helmsley once said, “Only the little people pay taxes.” That's not the message Mitt Romney wants to convey during a campaign that has a lot to do with tax cuts for the wealthiest.

[blake87]

1. Romney Tax Return Online Game

there's a game now where you can help Mitt file his tax returns: http://seamus-the-dog.com/HelpMitt.html