NyTimes brings back the Bain stories…. and the tax avoidances… and indirectly the secrecy of his tax returns… on the FRONT PAGE today… the day before the first debate.. and muddles the Benhazi attacks story a bit… as this thing has been pounded all through the summer.. and goes into the “economic patriotism” narrative.. pushed by the Obama Campaign..
The piece concludes.. that it might very well be tax avoidance on a personal account… but certainly avoidance through his companies… not illegally perhaps… but potentially damaging…. once again…….
Offshore Tactics Helped Increase Romneys’ Wealth
By MICHAEL LUO and MIKE McINTIRE
Buried deep in the tax returns released by Mitt Romney’s presidential campaign are references to dozens of offshore holdings with names like Ursa Funding (Luxembourg) S.à.r.l. and Sankaty Credit Opportunities Investors (Offshore) IV, based in the Cayman Islands.
Mr. Romney, responding to opponents’ barbs about his use of overseas tax havens, has offered a narrow defense, saying only that the investments, many made through the private equity firm he founded, Bain Capital, have yielded him “not one dollar of reduction in taxes.”
A review of thousands of pages of financial documents and interviews with tax lawyers found that in some cases, the offshore arrangements enabled his individual retirement account to avoid taxes on its investments and may well have reduced Mr. Romney’s personal income tax bills.
But perhaps a more significant impact of Mr. Romney’s offshore investments has been on the profit side of the ledger — in the way Bain’s tax-avoidance strategies have enhanced his income.
Some of the offshore entities enabled Bain-owned companies to sidestep certain taxes, increasing returns for Mr. Romney and other investors. Others helped Bain attract foreign investors and nonprofit institutions by insulating them from taxes, again augmenting Mr. Romney’s bottom line, since he shared in management fees based on the size of each Bain fund.