Romney Continues to Refuse Financial Transparency

A New York Times editorial published yesterday takes aim at Mitt Romney’s continued obfuscation regarding his tax returns. Shirking a precedent embraced by previous presidential candidates, including his father, George Romney, the GOP nominee has yet to fully disclose the extent of his foreign investments and tax havens.

“Mr. Romney has resisted all demands for more disclosure, leading to growing criticism from Democrats that he is trying to hide his fortune and his tax schemes from the public. Given the troubling suspicions about his finances, he needs to release many more returns and quickly open his books to full scrutiny.

The 2010 tax return showed that the blind trust held by his wife, Ann, included a $3 million Swiss bank account that had not been properly reported on previous financial disclosure statements. (The account was closed by the trust manager in 2010 who feared it might become embarrassing for the campaign. He was right.) It also showed that Mr. Romney had used a complex offshore tax shelter, known as a blocker corporation, to shield the investments in his I.R.A. from paying an obscure business tax.

The use of that technique by wealthy taxpayers and institutions, long been blasted by Congressional tax experts as abusive, costs the treasury $1 billion a decade.”

Romney’s pattern of dishonesty extends beyond his personal finances. He has yet to fully explain the terms upon which he parted with the Bain Capital, the private equity firm he helped create. Although he claims he left the firm in 1999, just last month “his trust reported receiving a $2 million payment from Bain as part of unpaid earnings from his work there”. (New York Times) Recent reporting by AP and Vanity Fair raise even more questions about the millions that Romney has stashed away in Bermuda and the Cayman Islands.

President Obama has recently returned from a bus tour under the banner of “Betting on America” – placing trust and reinvesting in American industry. The contrast with Mitt Romney couldn’t be clearer.

Romney’s campaign slogan is “Believe in America”, but an apt subtitle may as well be…”but invest somewhere else.”

PFAW