Bain Went Blocker to Avoid Taxes

     We get another link between Mitt Romney, tax evasion, and the Cayman Islands. We already know from what we do know about Romney's 2010 tax returns-although even what he released to the public on this was incomplete-that he has engaged in a lot of tax evasion to Bermuda, Switzerland, and the Cayman Islands among other foreign tax havens.

    We also know that when he was the auditor at the Marriott Hotel in the 90s the company went Son of the Boss in what has become one of the largest examples of tax evasion in U.S. history.

    Now we see that Romney's Bain Capital engaged in another very aggressive form of tax avoidance-using a blocker account.

    "The private equity firm founded by Republican presidential candidate Mitt Romney made use of arcane techniques in several of its Cayman Islands-based funds to avoid U.S. taxes, according to a trove of Bain Capital's private audit and finance records made public on the website Gawker today."

    "The audited financial statements of one of the Cayman Islands funds make note of the use of "blocker" entities, which are used to help retirement accounts and nonprofit entities avoid some taxes. Financial statements for another fund note that it "intends to conduct its operations so it will … not be subject to United States federal income or withholding tax ..."

   http://abcnews.go.com/Blotter/bain-documents-romney-offshore-investments-blockers-avoid-taxes/story?id=17067015

   This blocker move by Bain calls to mind Romney's magic IRA. No doubt, Romney will come up with his usual lame response that this was after he left Bain so it's nothing to do with him-in the case of Marriot, he was still with the company, he was the auditor-should the auditor know anything about the company breaking the law to evade taxes?

    However, while in this case at least-how can anyone be certain that Bain only begun these kinds of s Romney left the company?-he wasn't with the company, he was still an investor in Bain. If you point this out to him, presumably his text move is to say that it was in a "blind trust." so he didn't know what was in it.

   Is this much defense? Whether or not he knew about the tax evasion he benefited from it. An interesting subplot is that as a Mormon he's supposed to pay 10% on pretax income. So it may be that he not only ripped of the U.S. government but also the Mormon Church.

    "In the financials for the Bain Capital Asia Fund, for instance, the audit describes the establishment of blocker corporations to hold more than $92 million in contributions from the fund."

    "Some experts have pointed to the blockers to help explain how Romney has been able to amass between $20.7 million and $101.6 million in a tax-free IRA, many times more than the typical amount an IRA can hold. Romney has not responded to questions about his IRA."

    About all he'll probably be able to do is to piously intone that what matters is the economy as if he has any plan to fix that either. Remember-the Romney budget as big a secret as his tax returns that he is withholding from the American people.