So while everyone is wondering where Romney is stashing his millions and why he's doing it since he says the taxes would be the same whether the money was in the US or abroad, we should also take a fresh look at his $100 million IRA. Since other Americans can only put up to $6,000 per year into their IRA, clearly there has to be yet another catch that Romney has to know about. Here's the flashback to January:
In the wake of news reports last week that presidential contender Mitt Romney owns an individual retirement account worth as much as $101 million, questions are growing over how it could have gotten so big when contribution limits are capped at $5,000 or $6,000 a year.So yes, maybe he would be paying the same rate in the US with loopholes like this. That said, this only proves yet again how abusive the 1% has become with the system. They have access to trickery that only applies to people of their wealth. Sorry middle class, but you'll have to work longer and deal with less public benefits, which ultimately means higher costs for your kind.
Tax lawyers and accountants suggest an answer: Romney may have made use of an Internal Revenue Service loophole that allows investors to undervalue interests in investment partnerships when first putting them into an IRA. These assets can produce returns far in excess of those that could be generated from other investments made at the capped level.
An investor could even set an initial value for a partnership interest at zero dollars, because under tax regulations an interest in a partnership represents future income, not current value, said Chris Sanchirico, co-director of the Center for Tax Law and Policy at the University of Pennsylvania Law School.
What's also alarming about this news of Romney hiding millions abroad in tax havens is that I was told directly years ago by a US tax attorney that doing so is an open invitation for an IRS audit. This tax attorney was adamant about the high risk of putting money - regardless of the amount, let alone millions - into a bank in one of those locations.
That was over ten years ago so one has to wonder how Romney has slipped through the cracks. Or, is it yet another scenario where the 1% know enough of the tricks or pull special privileges since they are part of the ruling political class? Either way, it's Romney sticking his thumb in the eye of middle class Americans who are never allowed such circumstances.
Money has obviously bought a lot with Mitt Romney. Make no mistake about it, he's played his part in this war on the middle class, yet he still wants more.