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Subscribe to RSSMitt Romney tried again on Thursday to shift the campaign conversation away from his refusal to disclose more of his tax returns, raising questions about what may be in them.
While Romney accused President Barack Obama of demonizing business success by hounding the Republican challenger over the issue, tax experts were speculating about what might be in Romney's undisclosed returns.
So far he has released only his 2010 return and a draft of his 2011 return. He has pledged to release the full 2011 return when it is ready. He has also made disclosures to election officials that shed some light on his personal finances.
Formerly governor of Massachusetts, Romney co-founded private-equity firm Bain Capital, a highly successful investment house, and is one of the wealthiest individuals ever to run for the White House.
Presidential candidates are not required to disclose their tax returns, but it has become common practice. Romney's father released 12 years of returns when he ran for president in 1968.
Obama, whom Romney presumably will challenge in November, has released returns back to 2000.
Did he pay low taxes in 2009?
Could it be that Romney paid very little in taxes in 2009 or earlier?
Romney's tax return information released in January showed he paid a 13.9-percent effective tax rate in 2010 and expected to pay a 15.4-percent effective rate on his 2011 income.
Those rates are far below the 35-percent top tax rate for wages, chiefly because Romney gets most of his income from investment gains, which are taxed at a rate of 15 percent.
The 2008 financial crisis hammered many wealthy investors. Some tax experts speculate the crisis may have generated large capital losses for Romney that, carried forward into 2009, might have sharply reduced his tax bill for that year.
Romney campaign spokeswoman Andrea Saul said on Thursday that there has been no year in which Romney paid zero taxes.
Romney might have had other types of income in 2009 and earlier that could not be offset by capital losses, other experts said.
"The number everyone is focused on is, of course, the effective tax rate," said University of Notre Dame accounting professor Brad Badertscher.
Obama reported paying effective tax rates of about 26 percent in 2010 and about 20.5 percent in 2011.
What about that massive IRA?
Romney's individual retirement account, or IRA, holds as much as $101 million, despite an annual contribution limit of about $6,000. How could it have gotten so large?
Some tax experts suggest its value has been bloated by stock acquired by Bain at rock-bottom prices. The IRA holds some of Romney's most lucrative investments, according to a financial disclosure form filed with election officials last August.
Pre-2010 tax returns might reveal little about the IRA, however, since personal returns only show contributions and withdrawals in a given year, and would not show, for example, the values of partnership interests.
Wife's Swiss bank account
Ann Romney, the candidate's wife, held a trust with a $3 million bank account at UBS AG, the Swiss banking giant that in 2009 agreed to settle U.S. charges that it helped Americans evade taxes. The account was closed in 2010, the Romney campaign said.
University of Southern California Professor Edward Kleinbard wondered if the Swiss account generated income for the Romneys in ways they would rather not disclose, perhaps for instance by investing in foreign currencies against the U.S. dollar.
"Most presidential candidates don't think it appropriate to bet that the U.S. dollar will lose value by speculating in Swiss francs, which is basically the rationale offered by the trustee of Romney's 'blind' trust for opening this account," Kleinbard wrote in a Los Angeles Times opinion piece on Wednesday.
The trustee in charge of the Swiss account said it was an attempt to diversify investments.
Carried interest
Romney earned about $13 million in income over the past two years from "carried interest," a form of earnings available to private-equity firm partners and taxed at the 15 percent investment tax rate, rather than the higher rate on ordinary income, according to the campaign.
The carried interest provision of the U.S. tax code has repeatedly been targeted for elimination by Democrats who call it unfair, but the private-equity industry has fought repeal.
What about offshore investments?
In 2010, Romney and his family had substantial income from private equity, venture capital and other funds, according to disclosures in August to the Federal Election Commission.
Much of this income came from funds organized by Bain Capital. Some of the funds and affiliates are in tax havens such as the Cayman Islands, Bermuda and the U.S. state of Delaware.
"The so-called offshore account in the Cayman Islands, for instance, is an account established by a U.S. firm to allow foreign investors to invest in U.S. enterprises and not be subject to taxes outside of their own jurisdiction," Romney said in a recent interview in National Review magazine.
The tax returns released thus far also show investments in places such as Luxembourg and Switzerland.
No one is claiming these investments were illegal, but the use of offshore tax havens could hurt Romney in the campaign.
Copyright 2013 Thomson Reuters. Click for restrictions.
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Mr. Romney DISHONORS his FATHER when he refuses to do what his FATHER did. Full disclosure is the only honest thing to do. Would you hire an employee if they refused to fill out the employment form? Benjamin Franklin said it best when he said "The People Always Get the Government They Deserve." If the People of America decide to elect a man who will not even HONOR his FATHER with the TRUTH then WE WILL GET WHAT WE DESERVE.
Mr. Romney DISHONORS his FATHER by not giving full disclosure. Mr. Romney's FATHER did and stated clearely that it is the RIGHT thing to do. Would anyone hire an employee who refused to fill out the employment form? Benjamin Franklin said it best when he said "The People Always Get the Govenment They Deserve." If We the People of America Elect a man who is hiding the Truth, whatever that may be then WE WILL GET THE GOVERNMENT WE DESERVE.
I Haven't seen one good comment about Romney or Obama on the story.It is pretty clear that we need Ron Paul for president.He'll show his tax records even though he doesn't have to.Yes he is wealthy,but i bet he would take a pay cut because he doesn't need the money for being president.Our now president lied about helping medical marijuana patients get their meds because the feds have more power than any other group in the US.It don't matter who is the president the feds still run the country.Another thing,all you people that have jobs that have health insurance need to keep your mouths shut.It doesn't concern you.Romney was nothing but a glorified warden in the first place.He only knows how to deal with prisoners.If he gets elected than his kids can stop working and live off taxes we pay.Tax payers can furnish them with a condo and a new beamer every year for four years.Wine and dine every night and day about like Gadaffi did until the people got enough and did something about it instead of just talk about doing something.You ever heard of a million white man march?You won't here of one,because white people only talk crap.Black people march.You see any white people in Syria?
What might hiding in Obama's sealed college transcripts. Release both Romney's taxes and Obama's college records and find out what there is to hide. A fair plan to find out if there is anything rotten in this game.
What relevance do 30 year old college grades have today?
Willard's financials from as little as 20 months ago carry orders of magnitude more relevance!!!
I find it interesting that OBAMA BIRTHER issues and TRANSCRIPT issues come out when the real subject is Mitt Romney's tax returns. Anything to divert the real message.
Mitt,
Your dad stood up and released his returns the day after he was asked, for 12 years. And, actually both good Republicans and Democrats thought him a better man. Maybe not a President; but a better, bigger man.
Now, you can be a smaller man. You will win the Republican nomination. You may even win the election. But, in secret, you will always be the smaller man. Taller, better looking, richer, more accomplished, but smaller.
The "real subject" is the ECONOMY, stupid!
What has your Obamessiah DONE about THAT?!
I care a lot less about Romneys's numbers, than I do about the number of people--a LOT more, that is--who STILL DON'T HAVE A JOB, & HAVEN'T SINCE OBUMMER TOOK OFFICE!
If you are NOT long-term unemployed & STILL struggling to find work, you don't have any idea as to what it's like! 4 openings @ a business, & 245 people applying for them! Another one I've encountered: 6 jobs open, 218 people asking for them. Over 2,000 applications received for 35 jobs at a small manufacturing plant adding a 3rd shift!
A whole helluva LOT! I care about how much tax Romney paid last year, or any other! I am not paying any income taxes, bcz I don't have one, & THAT'S A BIG PROBLEM!
NOBAMA2012!
OBAMA: OneBigA$$MistakeAmerica!
The rich get richer and the poor get poorer because the rich know the poor will always fight over the crumbs instead of seeking an equal piece of the pie.MR is not in the game for the middle class. Surprisingly many know this, but that reality does not matter. No wonder the middle class is disappearing!!
What if Romney is "hiding" NOTHING, as he HAS said that he's paid all the taxes he owes, "& not a dollaR more."
Fact is, I'm more concerned about Obummer's numbers than Romney's, bcz they're the ones that matter, such as:
The number of dollars which account for the halving of the deficit, which he boasted he'd do in his 1st term.
The number of jobs created under his watch, since he said he'd have unemployment down to less than 6% by now.
The number of the %-age that GDP has increased since he took office.
The number of people--fewer, that is--who are dependent on the government for their daily lives, since he moved to WASH, D.C.
Etc.....
Romneys 77,000 dollar deduction for prancing horses is not legitimate so IRS should be knocking on the lake house door. Corporations are crooks too. Wake up America if your not a millionaire your going to pay more under Romney or buy some horses and deduct them off your tax bill and see if you dont end up in Jail
Guess I'm different compared to Romney. Went to Vietnam when America called. While Romney drop out of college and became hot potatoes on the draft. Running to his Daddy on getting him out of the draft. With his Daddy getting him Mormon Missionary work in France during the Vietnam draft. Now proudly tells us he served his Church during the Vietnam war. While in Vietnam, I had Mormon friends beside me fighting that war. They didn't run and evade the draft. They served when America called and weren't draft dodgers.
Tax returns? I was audit by the IRS on my little $35,000 yearly wages. Lost a day pay on driving to their office. They told me I need to get this certain documentation for them. I lost another day of pay, taking it to them. They said everything is in order.
No, Romney and I are not the same. I have no beef of his wealth. I just wonder if he haves any idea of the 99% of us Americans or if he really cares. Is it the same with him since the Vietnam era? Only caring about himself and no one else? I wonder about him.
And we wonder why so many things are going wrong for americans.We have lost our sense of direction,we are now borrowers,we do not contribute sensible options or solutions to our politicians or if we do we are blatantly ignored.Yet we vote for the same people over and over.We think that military might is the best and only way at times but dont consider cost of lives, economic effects etc.So here we are trying to discuss one man's tax return when we can use this medium to educate voters for the coming elections.Repubs or Dems it's all of us who will and deos suffer the consequences.So I wish all of yopu would shut the F---- UP and say or do something that will help.
BTW. Obama is just another link in a weak chain that is getting weaker as we speak fOOLS , DISCUSS REAL ISSUES OR SHUT UP.
Ron Paul 2012!
House of obama demands Romney release his tax returns. Americans demanded to see college transcripts and grades from obama. Guess who gets the media attention?
Romney should release his returns and let Americans decide if they trust him to be their president. Obama should release transcripts and grades and let Americans see if maybe he is not, who we want running OUR country.
They say Romney is hiding something, which if it was illegal the IRS would already have nailed him. Obama on the other hand is withholding information that must be damaging to him, otherwise why hide his college info?
When is Obama going to come clean thast he was not born in US? Two-face.
why so much hate?
Romeny hides and hides and hides. He is so out of touch it is no longer funny. Even his sons tried to discouraged him from running. That was on air with Brian Williams. So, why would 5 sons try and discourage their father from running? They are all intelligent adults.
as they say, something just not right.
It is soooo obvious that Mr. Fixit is a tax cheat.
Amazing you don't hold Obozo to the same standards..........how much is he hiding just in Fast & Furious alone?
I say Romney releases his taxes when Obozo and his administration come clean & release the documents asked of him.
Are we hypocrits much?
Questions of financial interest are appropriate. Different than questions that could impede a national investigation.
We usually spell last names correctly by the way. This is a reflection of civility.
I would like to know what he owns.
Stocks in guns? Interest in Israel?
And what might be hiding in Obama's transcripts?
Perhaps he got lousy grades - not quite as smart as he claims to be.
Perhaps, his college papers show that he is a committed socialist.
Perhaps on his application, as in the forward to his book DREAMS FROM MY FATHER, he states that he was born in Kenya.
Seems to me that Obama has no room to point the finger. Releasing college records should be a no brainer.