Offshore Candidate
Published in Rossiyskaya Gazeta
(Russia) on 6 July 2012
by Vasily Voropaev (link to original)
Former Massachusetts Gov. Mitt Romney, who is running this year for the White House, has unexpectedly found himself in the midst of a financial scandal.
Meticulous reporters have asked themselves: How much money does the politician really have, and does he pay taxes down to the penny? Vanity Fair conducted an investigation, diving into the complex weaves of offshore companies, dealing in “tax havens,” retirement savings and bank accounts — for example, in Switzerland.
The reporters found information about companies registered in Bermuda and the Cayman Islands. For example, Romney did not claim one of his companies year after year as property declaration. He only mentioned it on his 2010 tax return. Moreover, the politician declared the figures on his property extremely reluctantly. For a long time Romney completely declined to confirm the information; to go there would only force pressure from Republican political competitors. However, to many questions — such as the activity of the companies in Bermuda — it did not bring clarity.
“Even studying this document we do not know what it will represent, though its value could prove high. And this points out the possibility that Romney’s fortune could be larger than previously thought,” wrote the journal.
The authors of the article remarked that even though the political representative said that all of his taxes were paid, the offshore investments bring up a lot of questions, since it is practically impossible to get their exact revenue.
More importantly, Vanity Fair noted that even the figures on the amount that the politician is paying bring up questions. The question is about using existing holes in the law. This is how Romney was receiving financial compensation from founding the company Bain Capital. He gained these funds, according to the article, through “income from investments,” assuming they are taxed at no more than 15 percent. This is less than the average American pays. Many experts suggest that as a matter of fact this money was not gained from investments, which means it is taxed by a completely different rate — 35 percent.
Many Americans think that the taxes in their country are excessive and they have to pay too much. This, as Rossiiskaya Gazeta wrote earlier, brings out such unusual ideas as emigrating from the U.S. In 2010, nearly 1,500 people declined their American citizenship; since the beginning of this year, just under 2,000 others have done so already.
The tax scandal might be a big blow to Romney’s image, even though no one has directly made an accusation against the future candidate. Obama’s election campaign immediately turned its attention to the situation.
“The account in a Swiss bank. Dozens of funds on the Cayman Islands. And now the Bermuda asylum from taxes, which Romney withheld,” wrote one of the president’s campaign directors, David Axelrod, on Twitter.
By all accounts the Republican candidate has not settled the financial questions.
Meticulous reporters have asked themselves: How much money does the politician really have, and does he pay taxes down to the penny? Vanity Fair conducted an investigation, diving into the complex weaves of offshore companies, dealing in “tax havens,” retirement savings and bank accounts — for example, in Switzerland.
The reporters found information about companies registered in Bermuda and the Cayman Islands. For example, Romney did not claim one of his companies year after year as property declaration. He only mentioned it on his 2010 tax return. Moreover, the politician declared the figures on his property extremely reluctantly. For a long time Romney completely declined to confirm the information; to go there would only force pressure from Republican political competitors. However, to many questions — such as the activity of the companies in Bermuda — it did not bring clarity.
“Even studying this document we do not know what it will represent, though its value could prove high. And this points out the possibility that Romney’s fortune could be larger than previously thought,” wrote the journal.
The authors of the article remarked that even though the political representative said that all of his taxes were paid, the offshore investments bring up a lot of questions, since it is practically impossible to get their exact revenue.
More importantly, Vanity Fair noted that even the figures on the amount that the politician is paying bring up questions. The question is about using existing holes in the law. This is how Romney was receiving financial compensation from founding the company Bain Capital. He gained these funds, according to the article, through “income from investments,” assuming they are taxed at no more than 15 percent. This is less than the average American pays. Many experts suggest that as a matter of fact this money was not gained from investments, which means it is taxed by a completely different rate — 35 percent.
Many Americans think that the taxes in their country are excessive and they have to pay too much. This, as Rossiiskaya Gazeta wrote earlier, brings out such unusual ideas as emigrating from the U.S. In 2010, nearly 1,500 people declined their American citizenship; since the beginning of this year, just under 2,000 others have done so already.
The tax scandal might be a big blow to Romney’s image, even though no one has directly made an accusation against the future candidate. Obama’s election campaign immediately turned its attention to the situation.
“The account in a Swiss bank. Dozens of funds on the Cayman Islands. And now the Bermuda asylum from taxes, which Romney withheld,” wrote one of the president’s campaign directors, David Axelrod, on Twitter.
By all accounts the Republican candidate has not settled the financial questions.