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Clinton Stumps For Obama, While Bush Heads To Cayman Islands

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It seems former President George W. Bush isn't too worried about giving Mitt Romney some bad press just before the election. As Steve Benen noted, the contrast between how Bill Clinton is spending his time these days and Bush couldn't be more stark -- A tale of two former presidents:

Just this week, former President Bill Clinton has campaigned for President Obama in Florida, Ohio, Minnesota, Colorado, and Iowa. Today, Clinton will hit the stump for Obama in Wisconsin and again in Ohio. By most measures, the former president has become Obama's most popular and most effective surrogate.

And then there's Clinton's successor.

[George W. Bush] will spend Thursday in the Cayman Islands, delivering the keynote address at the Cayman Alternative Investment Summit. As Romney struggles to convince voters that he understands their economic struggles, having the previous Republican president reminding them of the questions surrounding Romney's financial dealings in the Caymans is beyond unhelpful.

Yes, as we first discussed in September, George W. Bush, with just five days remaining before Election Day, is headed to one of the most politically inconvenient locations possible for Mitt Romney: the Republican will deliver the keynote address this evening at the Cayman Alternative Investment Summit.

In case anyone's forgotten, Romney ran into a little trouble over the summer when we learned he has stashed cash in the Cayman Islands, and played fast and loose with the facts, hoping the public won't realize that Romney is using the Caymans as an apparent tax-avoidance scheme.

Which reminds me -- has anyone asked Romney about his secret tax returns lately?

Fat chance of that happening. Romney's been running from reporters asking him questions he doesn't like for months on end now.



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I'm not sure if the Romney campaign actually thought continuing to ask questions about his tax returns was going to distract from the dismal news cycle he's had for the last week or two, and is somehow better than talking about his "47 percent" remarks at that fundraiser, but here we go with a Friday news dump and the release of his 2011 returns.

As David Cay Johnston pointed out on Ed Schultz's show this Friday evening, the poorly worded press release just leaves more questions unanswered than answered and the 14.1 percent rate he paid could easily be amended down later if he fails to win his bid for the presidency.

Here's more from Think Progress on the subject -- 10 Questions Romney Should Answer About His Taxes:

On Friday afternoon, the Romney campaign released the candidate’s 2011 tax return, which showed that he paid a tax rate of approximately 14 percent on more than $13 million of reported income. The campaign also disclosed that Romney voluntarily forfeited about $1.8 million in charitable deductions to inflate the tax rate he would have to disclose to the public. The campaign continues to refuse to release returns prior to 2010, flunking an accepted standard of transparency, first established by Mitt’s father George Romney, of releasing multiple years’ returns.

In a blog post, Romney’s lawyer and the trustee of his “blind trust” said, “After you have reviewed all of the newly-posted documents, you may have further questions.” Yes, we do. Lots.

Here are 10 unanswered questions about Romney’s taxes:

1. After the election, when the subject of your tax returns is outside of the public glare, will you file an amended tax return to claim your full deduction of charitable contributions? Was the tax rate you reported for other years similarly manipulated?

2. Why was your 2011 income $7 million lower than you estimated it to be in January? How does someone overestimate their income by $7 million?

3. Financial disclosures show that you have as much as $82 million in your tax-deferred Individual Retirement Account, despite the fact that tax rules limited contributions into such accounts to $30,000 per year. Did you lowball the value of the assets you put into your IRA, as tax experts suspect? And did you do the same with gifts into your sons’ trusts?

4. What was the purpose of your Swiss bank account and the myriad offshore entities shown on your return, based in countries like the Cayman Islands and Luxembourg, if not to avoid taxes?

5. Can you explain what one tax expert has called a “mysterious one-time infusion of foreign tax credits” in 2008?

Follow the link above to read the rest. Rough transcript of Johnston's interview with Schultz, who had some similar questions, below the fold.

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Republican presidential nominee Mitt Romney's campaign on Wednesday partied with wealthy donors on a 150-foot yacht that flies the flag of the Cayman Islands, according to an ABC News report.

Members of the Romney Victory Council, who have each raised more than $1 million for the candidate, mingled with Romney's brother, Scott, and other relatives in Tampa aboard the luxury yacht "Cracker Bay."

While they waited outside the unadvertised event, ABC News snapped photos of the Cayman Islands civil ensign flag flying on the yacht's stern.

Gov. Bob McDonnell (R-VA) was reportedly scheduled to speak to the more than 50 people attending.

"It was a really nice event," billionaire energy industry executive Wilbur Ross told the network. "These are good supporters."

Romney came under fire earlier this year when it was revealed that he had millions stashed in the Cayman Islands, a notorious tax haven. In August, Vanity Fair reported that Romney still had a personal stake in at least 12 of Bain Capital's Cayman Island funds, worth up to $30 million.

The candidate recently insisted to Fox News host Chris Wallace that "there was no reduction — not one dollar reduction — in taxes by virtue of having an account in Switzerland or a Cayman Islands investment."

"I think it's ironic they do this aboard a yacht that doesn't even pay its taxes," a woman who lives at the marina where Cracker Bay is moored told ABC News.

crackerisland_120829a.jpg



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Presumptive Republican presidential nominee Mitt Romney insists that he didn't shut down his tax shelters in the Cayman Islands, Bermuda and Switzerland because it would "avoid the truth" and he wasn't going to "manipulate my life" just to become president.

Fox News host Chris Wallace asked Romney in an interview that aired on Sunday why he didn't close the Swiss bank accounts and get out of the investments in the Cayman Islands before he spent the last eight years running for president.

"First of all, there was no reduction -- not one dollar reduction -- in taxes by virtue of having an account in Switzerland or a Cayman Islands investment," Romney explained. "The dollars of taxes remained exactly the same. There was no tax savings at all. And the conduct of the trustee and making investments was entirely consistent with U.S. law and all the taxes paid were those legally owed and there was no tax saving by virtue of those entities."

"But why not just go to him a long time ago and just say, get out of these things?" Wallace pressed.

"Don't invest in anything outside the United States?" Romney replied. "I mean, I could have said, 'Don't make any investments in any foreign companies, in any foreign bonds, in any foreign currency -- only U.S. entities. And by the way, don't buy any foreign products, don't have any Japanese TVs or foreign cars.' I mean, yeah, I could have done that."

"But, I mean, I did live my life," he continued. "And I expect by virtue of disclosing all these things, people can take a look at it and see whether that's something they're comfortable with or not. I'm not going to try and hide who I am and try and manipulate my life to try and avoid the truth."



Dick Durbin: 'Mitt Romney is the Obamacare Daddy'

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Illinois Sen. Dick Durbin did a nice job of hammering home a few points about presumptive presidential nominee Mitt Romney on this Sunday's Face the Nation and I hope we see more Democrats continue to do the same.

I don't think most average voters care whatsoever about the ridiculous talking point we heard all week on the Supreme Court ruling on the individual mandate and whether it's a tax or a penalty. Who the hell cares? I can tell you this wasn't on the radar of anyone I encounter in everyday life and the people who don't follow politics that I'm around had no idea the court even ruled on the Affordable Care Act, much less some argument on the semantics of what you call the penalty on free riders.

Believe me, that is the kind of stuff that makes people's eyes start rolling back into their heads if you even try to find out if they read about the decision. The right wingers in the media won't shut up about it because they feel they're scoring points if they just use the words Democrat and taxes in the same sentence over and over again. The trouble for Romney is they're doing it now when almost no one is paying a damn bit of attention to them other than their hard core base, who was never going to vote for Obama in a million years anyway or the tiny segment of the population that covers politics year round.

Rather than continuing to respond to that nonsense, I'm happy to see the Democrats pointing out the hypocrisy of Romney now being against a plan that was essentially the same as the law his state passed when he was governor, as Durbin did here. Bottom line is, the Affordable Care Act was based on Romney's plan and now he wants to pretend he never passed the same thing in his state, because apparently he believes most voters out there are incapable of reading or will never watch old video tape and that everyone who votes in the upcoming election either a Fox "News" watcher or Rush Limbaugh listener.

Durbin also did a good job of hitting Romney on the offshore tax havens and Swiss bank account. The more I see the Democrats actually getting after Romney as they've been doing in recent weeks for Bain, for outsourcing, for the offshore tax havens and for the hypocrisy and as I've watched his campaign really have a lot of trouble responding, I've got to wonder how Romney's going to make it through the debates.

SCHIEFFER: Senator Durbin, started Governor Barbour off with a quote from a Republican. Here's one from a Democrat, former Clinton Labor Secretary Robert Reich wrote in The Huffington Post this week that President Obama did inherit a bad economy from George Bush. But he says, "The excuse is wearing thin. It is his economy now, and most voters don't care what inherited." And "if the economy stays bad," Robert Reich said "he's not going to be elected." Is that fair? Does he have a point?

DURBIN: Well, I-- I tell you, it's-- it's clear that economy is the number one issue. It's also clear that the month that Obama was sworn into office we lost eight hundred thousand jobs that month. Last month we created eighty thousand jobs in the private sector. In the last twenty-eight months we have seen consistent private sector job growth.

It is also clear that when it comes to contrasting, Mitt Romney has no economic plan. He wants to return us to those thrilling days of the bush yesteryears that brought us into this recession. But he has two other problems in his campaign that have really dragged him down, he can't get lift. The second one is the whole question of health care reform. Let's get down to the bottom line here. Mitt Romney is the Obamacare daddy. He gave birth to this baby up in Massachusetts and now he doesn't recognize it; he can't pick out any straight-- strains in the hereditary chain there that looked like anything that he did in Massachusetts.

But let me tell you, Bob, there's a third issue looming here and it's all about a lighthouse off Nan-- Nantucket called Sand Katie. If you read the vi-- Vanity Fair piece and The Associated Press piece we understand the following. Mitt Romney has failed to make an economic disclosure that every President and candidate for President has made in the last thirty-six years goes back to his father, who disclosed twelve years of tax returns, he's disclosed one.
Secondly, he is the first and only candidate for President of the United States with a Swiss bank account with tax shelters, with tax avoidance schemes that involve so many foreign countries. And the third is that when it comes down to his Swiss bank account, there is just no way to explain it.

SCHIEFFER: Okay.

DURBIN: You either get a Swiss bank account to conceal what you are doing or you believe the Swiss Franc is stronger than the American dollar.



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During another typically intelligent panel discussion on Chris Hayes' show on MSNBC this Sunday on the Republicans and Mitt Romney out there demagoguing President Obama asking Congress to pass the "Buffett Rule" so that millionaires and billionaires are not exploiting tax loopholes that allow them to pay far less of a percentage of their income in taxes compared to average working class citizens out there, David Cay Johnston brought up something I apparently missed earlier this year that he had reported on in January -- the fact that Mitt Romney was allowed to give his sons $100 million as a gift tax free, thanks to a tax loophole on "carried interest."

Romney’s gift from Congress:

When the Romney campaign disclosed in December that the couple’s five sons had a $100 million trust fund, I suspected that, in setting up the fund, the Romneys used a tax strategy that allows some very rich people to avoid paying gift taxes. But it was impossible to know if this was the case without seeing their tax returns going back years.

So when Mitt Romney released the family’s 2010 tax return last week, I went looking. I found a hint on pages 132 and 134 of the return. It showed that the value of property placed that year into another family trust, the Ann D. Romney Blind Trust, was, for tax purposes, zero. The Ann Romney trust is not the same trust as the one that holds the Romney sons’ $100 million, but I wondered if the Romneys used the same approach in prior years when it came to valuing property placed into the sons’ trust.

Reuters emailed the Romney campaign spokeswoman to ask how much the Romneys paid in gift taxes on assets put into the sons’ trust over the last 17 years. The spokeswoman, citing Brad Malt, the Romney family tax lawyer, answered: none.

The idea that someone could pay zero gift taxes on contributions to a $100 million trust fund may surprise people who have heard arguments that the wealthy are overburdened by gift and estate taxes. But the Romneys’ gift-tax avoidance strategy is perfectly legal. Read on...

Johnston posted a video explaining the loophole in his post at Reuters which you can watch below the fold.

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