Mitt
Romney's
Tax
Returns
Round Three: September 2012
On
September 21, 2012, former Gov. Romney filed his 2011 tax returns
claiming an effective tax rate of 14.1%.
As shown below, this did not silence his critics...
BLOG POSTING at Romney for President
September 21, 2012
Note From Trustee Brad
Malt
This morning, Gov. and Mrs. Romney filed their 2011 tax return with
the IRS. At 3:00pm today, the Romney for President campaign will be
posting the 2011 return online.
The complete 2011 tax return, with full schedules, statements, and
attachments, will be made available with all other previously-disclosed
information at www.mittromney.com/disclosure.
Also posted will be a notarized letter from the Romneys’ tax
preparer, PricewaterhouseCoopers, LLP (PWC), giving a summary of tax
rates from the Romneys’ tax returns for the 20-year period of 1990-2009.
In advance of the posting of these new documents, I wanted to
provide some top-line details.
Regarding the newly-filed 2011 Tax Return:
- In 2011, the Romneys paid $1,935,708 in taxes on $13,696,951 in
mostly investment income.
- The Romneys’ effective tax rate for 2011 was 14.1%.
- The Romneys donated $4,020,772 to charity in 2011, amounting to
nearly 30% of their income.
- The Romneys claimed a deduction for $2.25 million of those
charitable contributions.
- The Romneys’ generous charitable donations in 2011 would have
significantly reduced their tax obligation for the year. The Romneys
thus limited their deduction of charitable contributions to conform to
the Governor's statement in August, based upon the January estimate of
income, that he paid at least 13% in income taxes in each of the last
10 years.
As with the 2010 tax return, the 2011 tax return will appear as four
separate documents. It includes Governor and Mrs. Romney's Form 1040 as
well as three underlying Massachusetts trusts detailing the sources of
their income. Those are The W. Mitt Romney Blind Trust, The Ann D.
Romney Blind Trust, and The Romney Family Trust.
The investments within the trusts are managed on a blind basis by
me, the trustee. I have sole responsibility for making, holding and
disposing of the investments.
Regarding the PWC letter covering the Romneys’ tax filings over 20
years, from 1990 – 2009:
- In each year during the entire 20-year period, the
Romneys owed both state and federal income taxes.
- Over the entire 20-year period, the average annual effective
federal tax rate was 20.20%.
- Over the entire 20-year period, the lowest annual effective
federal personal tax rate was 13.66%.
- Over the entire 20-year period, the Romneys gave to charity an
average of 13.45% of their adjusted gross income.
- Over the entire 20-year period, the total federal and state taxes
owed plus the total charitable donations deducted represented 38.49% of
total AGI.
During the 20-year period covered by the PWC letter, Gov. and Mrs.
Romney paid 100 percent of the taxes that they owed.
Finally, in addition to new documents related to tax filings, the
campaign will also be posting on the same website physician letters for
both Gov. Romney and Rep. Ryan, making public their current state of
health.
After you have reviewed all of the newly-posted documents, you may
have further questions. The campaign asks that you direct them to an
e-mail account set up for that purpose. That e-mail address is returns
@
mittromney.com.
Thank you.
R. Bradford Malt is a partner at Ropes & Gray, LLP. He has
been the trustee of the Romney’s blind trust since 2003.
Frequently Asked Questions
Topline Facts
2011 Filed Tax Return:
- $1,935,708 in taxes on $13,696,951 in mostly investment income
- 14.1% effective tax rate
- $4,020,722 donated to charity; $2,250,772 in charitable deductions
2010 Filed Tax Return:
- $3,009,766 in taxes on $21,646,507 in mostly investment income
- 13.9% effective tax rate
- $2,983,974 donated to charity
There are now over 1200 pages of tax returns, and several years of
financial disclosures posted on the Romney for President website.
The campaign has also released a letter from PricewaterhouseCoopers
providing information about the Romneys’ taxes going back to 1990.
FAQ
1. How much did the Romneys pay in taxes in 2011?
In 2011, the Romneys paid just over $1.9
million in federal income taxes. For the two years 2010 and 2011,
they paid $4.9 million in federal income taxes.
2. What is the Romneys’ effective tax rate for 2011?
Their effective federal tax rate in 2011
is 14.1% of adjusted gross income (AGI).
Governor and Mrs. Romney donated over $4
million – nearly 30% of their income – to charity in 2011. The
Romneys took a deduction for $2.25 million of those charitable
contributions.
Had the Romneys made no charitable
donations, and therefore taken no charitable deduction, their effective
tax rate would have been 18.8% of AGI.
Their generous giving in 2011 could have
significantly reduced their tax obligation this year. The Romneys
voluntarily limited their deduction of charitable contributions to
conform to the Governor's statement in August, based upon the January
estimate of income, that he paid at least 13% in income taxes in each
of the last 10 years.
3. Where did the Romneys’ charitable contributions go?
The Romneys’ charitable contributions
went to their charitable foundation, the Tyler Charitable Foundation,
and to tithing to their church, the Church of Jesus Christ of
Latter-Day Saints.
In 2011, the Tyler Charitable Foundation
made donations to a number of causes, including the Joey Fund (for
cystic fibrosis), Cystic Fibrosis Foundation, Sabin Children’s
Foundation, National Multiple Sclerosis Society, Dana-Farber Cancer
Institute’s Jimmy Fund, and Homes for Our Troops.
The Church of Jesus Christ of Latter-Day
Saints has a long tradition of charitable works, such as working with
the Red Cross on disaster relief. In addition, the LDS Charities work
around the world helping the less fortunate through humanitarian aid,
clean water, food production, and medical care.
4. Why are you releasing this today?
Because it was filed today.
5. When were the forms completed?
Governor Romney signed his return yesterday.
6. Why didn’t he file his 2011 taxes on April 15th?
As we said in April, the Romneys filed
for an extension, as they did in prior years, because the investment
information required to prepare complete and accurate tax returns was
not available by April 15. They cannot file tax returns until
this information is provided by third parties. This is a common
practice for taxpayers with similar types of investments.
However, all taxes owed for 2011 were paid by Governor and Mrs. Romney
by April 15.
7. Why is his 2011 income one-third lower than his 2010
income?
The Romneys’ income can vary
significantly from year to year, depending primarily on what
investments are sold and how much they have appreciated or depreciated.
8. How much of his 2011 income is from capital gains?
The Romneys reported $6.8 million in
income from capital gains on their 2011 return. That compares to
$12.57 million in 2010.
9. In the PricewaterhouseCoopers letter, how were the
average tax rates calculated?
PricewaterhouseCoopers calculated the
average effective federal income tax rate by summing the effective
rates for each of the years 1990-2009, and then dividing by 20.
The same formula is used to generate the average effective state income
tax rate, and the average effective charitable contribution deduction
rate.
10. In the PricewaterhouseCoopers letter, how was the 38.49%
figure, total federal and state taxes and charitable contributions as a
share of AGI, calculated?
PricewaterhouseCoopers added all the
dollar amounts paid each year for federal taxes, state taxes, and
charitable contributions deducted, and divided that by the total AGI
for the period.
11. Why are there four separate documents for one tax
year?
The Romneys have established three
trusts under Massachusetts law, one for Mrs. Romney, one for Gov.
Romney, and a family trust. Each of these three trusts has one Form
1041 tax document, and then income from these three trusts is combined
and reflected on the Romney’s Form 1040.
12. There are some investments that seem to be established
in offshore accounts, like the Cayman Islands and Bermuda. Are these
investments evading taxes?
No, the investments by the blind trusts
in funds established in the Cayman Islands or other jurisdictions are
taxed in the very same way they would be if the shares were held in the
US rather than through a Cayman fund. No taxes are evaded or
reduced. These funds are all registered with the IRS and report
all income to investors and the IRS, just like domestic funds.
Whether in Bermuda or Boston or elsewhere, there is no difference in
how they are taxed.
In addition, it is important to note
that there are no offshore accounts. These are investments in
funds that are organized outside the US.
Further, it is important to note that
Governor Romney did not make these investments. Governor and Mrs.
Romney's assets are managed on a blind basis. They do not control
the investment of these assets. The assets are under the control and
overall management of an independent trustee.
Finally, the trustee did not choose
where the investments were located any more than a stockholder in a
Fortune 500 company chooses where that company is organized. Only
the sponsor of the fund decides where it is organized. That
responsibility is totally outside the control of a passive investor
like Gov. Romney or the trustee of his blind trust.
13. Why is there information that is redacted?
Any personal or sensitive information on
the various tax forms has been eliminated in order to make the material
public. Redacted material includes Social Security numbers, street
addresses, account numbers or partial account numbers, business and
partner tax ID numbers, and PricewaterhouseCoopers’ internal coding and
preparer information.
14. What about state taxes?
Governor and Mrs. Romney are residents
of the Commonwealth of Massachusetts, and they pay all state taxes they
are required to pay.
Romney for President
WHAT
THEY’RE SAYING: MITT & ANN ROMNEY’S TAX
RETURNS
“Substantial
Charitable
Gifts”
…
“A Lot, By Any Measure” … “Gave Away 30% Of His
Income”
Senator
John McCain: “An Incredibly Detailed Look At His Finances. … It’s Time
To Get Back To Discussing The Issues That Voters Care About.” “Mitt Romney has now released more than 1,200
pages of tax returns, giving voters an
incredibly detailed look at his finances. Now that the most recent tax return has been released, it’s time to get back
to discussing the issues that voters care about. While President Obama
and Democrats will try to distract voters, Mitt Romney and Paul Ryan
are focused on fixing the economy, getting Americans back to work and
ensuring a better future for our children and grandchildren.” (Senator John McCain, Press Release, 9/21/12)
Governor
Bob McDonnell: “It’s Time For Us To Discuss The Real Choice Facing
Voters This Year. … We Cannot Afford Four More Years Of The Obama
Economy…” “It’s time for us
to discuss the real choice facing voters this year. Mitt Romney and
Paul Ryan are running to get America creating wealth again, while
President Obama is running to redistribute wealth. We cannot afford
four more years of the Obama economy, and I look forward to carrying
that message to voters over these next weeks.” (Governor Bob McDonnell, Press Release,
9/21/12)
The Wall
Street Journal’s John
McKinnon: “Very Large Gifts To Charity… Substantial Charitable Gifts…” “The Romneys' tax
rate also was lowered by very large gifts to charity—more than $4
million in all, the campaign said. That resulted in a deduction of
$2.25 million. To reduce the impact of their substantial charitable
gifts on their 2011 tax rate, the Romneys
‘limited their deduction of charitable contributions,’ the blog post
said.” (John McKinnon, “Romney
Releases More Tax Details,” The Wall Street Journal,
9/21/12)
CNN Money’s
Jeanne Sahadi: “Romney's Effective Federal Income Tax
Rate Is Still Higher Than That Of Most Americans…” “But contrary to popular perception, Romney's
effective federal income tax rate is still
higher than that of most Americans -- 80% of whom have an effective
rate below 15%.” (Jeanne Sahadi,
“Romney Paid 14% Effective Tax Rate In 2011,” CNN Money,
9/21/12)
Fox News:
“The Romneys Donated About $4 Million To Charity In 2011, Or About 30
Percent Of Their Income…” “The
Romneys
donated
about
$4 million to charity in 2011, or about 30
percent of their income, according to the campaign, which plans to
release the documents at 3 p.m. ET.” (“Campaign Says Romney's Average Effective Tax Rate Was 20 Percent Over 2 Decades,” Fox News,
9/21/12)
Fox News’
Brit Hume: “So Romney Gave Away 30% Of His Income And Overpaid His Taxes. The Left Sees This As Further Evidence He's
Terrible.” (Twitter.com,
9/21/12)
CNBC
Contributor James Pethokoukis: “Wait, Is Romney Addicted To Charitable
Giving!” (Twitter.com,
9/21/12)
Politico’s Josh Gerstein: “Romney Was Far More Generous
To Charities Than President Barack Obama Or Vice President Joe Biden
Last Year, Both In Dollar Terms And As A Percentage Of Income…” “Republican presidential nominee Mitt Romney
was far more generous to charities than President Barack Obama or Vice
President Joe Biden last year, both in dollar terms and as a percentage
of income, tax return data Romney’s campaign
released Friday indicate.” (Josh
Gerstein, “Mitt Romney Gives More To Charity Than President Obama, Joe
Biden,” Politico,
9/21/12)
The Wall
Street Journal’s
Matthew Rose: “The Romneys’ Adjusted Gross Income, Over The 20-Year
Period Being Counted, That Went To Federal And State Taxes
Plus Charitable Contributions … [Is] A Lot, By Any Measure…” “One notable number in the excerpts the
campaign posted is 38.49%. That’s proportion of the Romneys’ adjusted gross income, over
the 20-year period being counted, that went to federal and state taxes plus charitable contributions (at least the
charitable contributions they deducted.) That’s a lot, by any measure,
especially given the relatively low effective federal income tax rate the couple pay.” (Matthew Rose, “Live Audit: The Romney Tax Documents,” The Wall Street Journal,
9/21/12)
The
Washington Post’s Brad
Plummer: “It Appears That Harry Reid’s Infamous Source Alleging That
Romney Paid Nothing In Taxes For 10 Years Was
Wrong.” “Meanwhile, at first
glance, it appears that Harry Reid’s infamous source alleging that
Romney paid nothing in taxes for 10 years was
wrong.” (Brad Plummer, “Mitt
Romney Is Paying… Too Much In Taxes?” The Washington Post,
9/21/12)
NBC News:
“[Romney] Went A Step Further Than Was Previously Anticipated In
Releasing A Certified Summary Of His Tax
Returns Over A Two-Decade Period … The Romneys Gave An Average 13.45
Percent Of Their Adjusted Gross Income To Charity Each Year.” “Romney made good on its [sic] pledge to
release his tax returns from 2011 before the
election, and went a step further than was previously anticipated in
releasing a certified summary of his tax
returns over a two-decade period preceding 2010. … The letter, the
campaign said, would show their average effective tax
rate over that 20-year period was 20.20 percent, and there was no year
in which the Romney's paid a lower effective federal personal tax rate than 13.66 percent. Moreover, the Romneys
gave an average 13.45 percent of their adjusted gross income to charity
each year.” (Michael O'Brien,
“Romney Paid 14.1 Percent Effective Tax Rate
In 2011,” NBC News,
9/21/12)
###
FOR IMMEDIATE RELEASE |
CONTACT: Romney Press Office |
September 21, 2012 |
STATEMENT BY FORMER IRS COMMISSIONER FRED
GOLDBERG ON MITT ROMNEY’S TAX RETURNS
Boston, MA –
Former Commissioner of the Internal Revenue Service Fred Goldberg
released the following statement on Mitt Romney’s tax returns:
I
have reviewed Governor and Mrs. Romney’s joint tax return for 2011,
including returns for the Ann and Mitt Romney Family Trust, the Ann D.
Romney Blind Trust, and the W. Mitt Romney Blind Trust.
My reaction following this review is the same as my reaction after
reviewing the 2010 returns. As I said then:
These
returns reflect the complexity of our tax laws and the types of
investment activity that I would anticipate for persons in their
circumstances. There is no indication or suggestion of any
tax-motivated or aggressive tax planning activities. In my judgment,
they have fully satisfied their responsibilities as taxpayers. They
have done so by relying on a highly reputable return preparer and other
advisors, who have in turn relied primarily on information provided by
third parties to them and to the IRS. The end result of that process
has been returns that include a multitude of schedules, IRS forms and
accompanying statements that provide appropriate transparency and the
proper payment of taxes that Governor and Mrs. Romney owe under current
law.
###
PRESS RELEASE from Obama for America
For
Immediate Release:
Friday,
September
21,
2012
Contact:
Obama
for America Press
STATEMENT: Romney Pays Lower Rate than
Middle Class, Hides Wealth and Income
Chicago,
IL—Obama
for America released the following statement from Deputy Campaign
Manager Stephanie Cutter on Mitt Romney’s 2011 tax
returns:
“Today’s
release
of
Mitt
Romney’s 2011 tax returns
confirms what we already knew – that people like Mitt Romney pay a
lower tax rate than many middle class families
because of a set of complex loopholes and tax
shelters only available to those at the top. Yet, Mitt Romney
still wants to give multi-millionaires an additional $250,000 tax cut at the expense of middle class taxpayers who
will see their taxes go
up. While the tax return for
the one year released today continues to mask Romney’s true wealth
and income from Bain Capital, leaving the American people in
the dark about critical details about his finances, it
does confirm that he continues to profit from millions of dollars
invested overseas. These types of investments, the use of tax loopholes, and the resort to foreign
blocker corporations enabling him to reduce his U.S. tax
obligations, all raise basic and still unanswered question –
why does Mitt Romney not just release the full returns , instead of the
bare summary he has provided of the last 20 years, so voters can
make their own judgments about Mitt Romney’s
finances? As Mitt Romney’s father said, candidates
should release several years of returns, because one year could be a
fluke. President Obama, Vice President Biden and nearly
every other candidate in recent memory has met that test, but Mitt
Romney continues to fail it.”
###
PRESS RELEASE from Obama for America
For
Immediate Release:
Saturday,
September
22,
2012
Contact:
Obama
for America Press
Mitt Romney's Tax Returns: What Else is He
Hiding?
CHICAGO— Today, just as
Mitt Romney released a second year of tax returns, Obama for America
released a
new web video – because the American people still want to know what
he’s hiding.
Romney’s
2011 tax returns constitute 813 pages – more than 65 percent of which
deal with his overseas investments, including substantial investments
in a Chinese oil company, dozens of foreign
bank accounts, millions of dollars stashed away in notorious tax
havens, ownership of stocks in the Russian oil giant Gazprom, and bets
against the American dollar by investing in Norwegian, Australian,
Swedish and Canadian currency.
That’s
just the tip of the iceberg. With just two years of returns on the
table, Mitt Romney still fall way behind longstanding precedent –
failing to match other Presidential candidates.
When faced with today’s shocking revelations, the American people
rightfully demand to know why.
Click
HERE
to watch OFA’s new video.
###
MEMO from American Bridge 21st Century
September
22, 2012
Contact:
Matt
Thornton
MEMO:
What’s
Romney
Hiding?
To: Interested Parties
From: Rodell Mollineau, President of American Bridge 21st Century
Date: 9/22/2012
RE: What’s Romney hiding with his tax summary?
Mitt
Romney's inexplicable choice to release a minimal summary of his past
twenty years of federal income tax returns only serves to confirm that
there must be something so toxic to his candidacy in those returns that
it seemed strategically sound to release a short briefing in September
after questions had been raised for nearly a year.
American Bridge
previously
presented a list of things that Mitt Romney could be hiding, but below
are just three of the biggest questions raised by Friday’s incomplete
disclosure.
1)
Did Mitt Romney recently amend his
previous years’ tax returns to ensure he could claim he was paying a
tax rate above 10%?
Already we know Romney played similar games with his 2011 returns. He
declined to take tax deductions to ensure he paid a higher rate of
14.1%
but Romney could recoup those deductions later with an amended return.
It’s also worth noting that Romney previously stated that if he “had
paid more than are legally due I don't think I'd be qualified to become
president.”
IRS Amended Income Tax Returns May Be Used
To Amend Income Levels.
According to the IRS, “An amended tax return generally allows
you to
file again to correct your filing status, your income or to add
deductions or credits you may have missed.” [IRS, 4/12/11]
Romney Did Not Take Advantage Of All
Deductions Available In Order To Demonstrate A Higher Tax Rate. According
to
Huffington
Post,
“‘The
Romneys’
generous charitable donations in
2011 would have significantly reduced their tax obligation for the
year.
The Romneys thus limited their deduction of charitable contributions to
conform to the Governor’s statement in August, based upon the January
estimate of income, that he paid at least 13% in income taxes in each
of
the last 10 years,’ his trustee Brad Malt said in a note accompanying
the return.” [Huffington Post, 9/21/12]
Romney Can Recoup The Money Later. According
to
Huffington
Post,
“‘Luckily
for
Romney, after the election he can
recoup that money. If the American people reject him at the polls in
November -- and even if they don’t -- Romney would be fully within his
legal rights to file an amended return, requiring the Treasury to cut
him a substantial check. ‘It’s noble,’ said Boston College tax law
professor Brian Galle of Romney’s generous, if temporary, gift to the
Treasury. ‘It also doesn’t prevent him from taking that deduction in an
amended return if he were to file it after the election.” [Huffington Post, 9/21/12]
If Mitt Romney Took Advantage Of All
Deductions He Was Entitled To, His Tax Rate Would Have Been Closer To
9%. According
to Think Progress, “If Romney had taken all of the deductions available
to him under the tax code, he would have paid closer to a 9 percent tax
rate in 2011.” [Think Progress, 9/21/12]
2)
What foreign tax havens did Romney
exploit for the 20 years of returns he failed to make public? In
his 2010 return we learned of the infamous Swiss bank account and
holdings in Bermuda and the Caymans.
Romney Listed A Swiss Bank Account On His
2010 Tax Return.
According to the Boston Globe, “Advisers to Republican presidential
candidate Mitt Romney are acknowledging that he once had a Swiss bank
account but that it was closed in 2010 as prepared to enter the race
for
the White House. The Swiss account is listed on Romney’s newly released
2010 federal income tax return. It had been opened by a Boston lawyer
who oversees the Romney family investments and a blind trust containing
millions of dollars in assets.” [Boston Globe, 1/24/12]
Romney
“Utilized Shell Companies In Two Offshore Tax Havens To Help Eligible
Investors Avoid Paying U.S. Taxes” And In Doing So “Boosted Profits For
Romney And His Partners.” According
to the Los Angeles Times, “While in private business, Mitt Romney
utilized shell companies in two offshore tax havens to help eligible
investors avoid paying U.S. taxes, federal and state records show.
Romney gained no personal tax benefit from the legal operations in
Bermuda and the Cayman Islands. But aides to the Republican
presidential
hopeful and former colleagues acknowledged that the tax-friendly
jurisdictions helped attract billions of additional investment dollars
to Romney’s former company, Bain Capital, and thus boosted profits for
Romney and his partners. Romney has based his White House bid, in part,
on the skills he learned as co-founder and chief of Bain Capital, one
of
the nation’s most successful private equity groups. His campaign cites
his record while governor of Massachusetts of closing state tax
loopholes; his involvement with foreign tax havens had not previously
come to light.” [Los Angeles Times, 12/17/07]
3)
Did Mitt Romney use his IRA to
manipulate his alleged income tax rate? We
know that at Bain Capital employees used a split stock structure to put
their higher paying shares in their IRAs. Those funds would normally be
subject to the Unrelated Business Income Tax (UBIT) tax designed to
avoid giving retirement accounts and non-profits an advantage over
for-profit companies when investing in businesses. To avoid those
taxes,
Romney may have used his Cayman and Bermuda accounts as an “off-shore”
blocker. Taking into account those avoided taxes would result in a much
lower tax rate than the one Romney disclosed on Friday.
Mitt Romney Obtained A Multi-Million Dollar
IRA By Investing Retirement Funds In Bain Capital. According
to Wall Street Journal, “Like many Americans, Mitt Romney has an
individual retirement account. Unlike most Americans, Mr. Romney has
between $20.7 million and $101.6 million in it, a big chunk of his
fortune. Experts on estate planning said it is highly unusual to
accumulate such a considerable sum in an IRA, an investment vehicle
restricted by annual contribution limits. It appears that Mr. Romney’s
grew so large mostly because it holds investments in Bain Capital, the
private-equity firm he helped start.” [The Wall Street Journal,1/19/12]
Romney Could Have Inflated The Value Of His
Ira By Using Split Shares In Classes A And L. According
to Vanity Fair, “The Romneys won’t say, but Mark Maremont, writing in
The Wall Street Journal, uncovered a likely explanation. When Bain
Capital bought companies, it would create two classes of shares, named
A
and L. The A shares were risky common shares, to which they would
assign a very low value. The L shares were preferred shares, paying a
high dividend but with the payoff frozen, and most of the value was
assigned to them. Bain employees would then put the exciting A shares
in
their I.R.A. accounts, where they grew tax-free. With all the risk of
the deal, the A shares stood to gain a lot or collapse. But if the deal
succeeded, the springing value could be stunning: Bain employees saw
their A shares from one particularly fruitful deal grow 583-fold, 16
times faster than the underlying stock.” [Vanity Fair, 8/12/12]
Romney Would Likely Incur The UBIT Tax
Because His IRA Invested In Private Equity Funds. According
to The Wall Street Journal, “Under current tax law, anybody investing
an IRA in a private-equity fund, as Mr. Romney did, would likely incur
a
hefty special tax on ‘unrelated business income,’ also known as UBIT.
This tax, assessed at a maximum 35% rate, is meant to discourage
tax-exempt entities such as an IRA, pension plan or endowment fund from
unfairly competing with for-profit, taxpaying entities by operating a
business without paying taxes on it. Investing in a partnership that
uses debt to buy companies would trigger the tax, experts said.” [The
Wall Street Journal,1/19/12]
Romney’s Campaign Has “Come Close” To
Admitting That Romney’s IRA Uses Blocker Corporations, But Have Not
Said It Directly. According
to The New York Times, “The Romney campaign has not said whether the
candidate’s I.R.A. investments are in a blocker entity, but they have
come close. A campaign statement said Mr. Romney’s I.R.A. ‘uses
investment structures just as those commonly used by charities and
pension funds, including union pension funds, to maintain their
tax-exempt or tax-deferred status.’” [The New York Times, 2/7/12]
Also
on the financial front...
MoveOn.org Political Action continued to pursue the question of when
Romney left Bain Capital.
PRESS
RELEASE
from
MoveOn.org Political Action
FOR
IMMEDIATE RELEASE September
27, 2012
CONTACT: Sahar
Wali
New
Legal Analysis Finds Strong Possibility of Romney Criminal Liability
for
Misrepresentation He Made in Federal Financial Disclosure Filings in
2011
MoveOn
submits complaint and formal legal analysis to U.S. Department of
Justice,
urging investigation into Romney’s apparent violation of False
Statements Act;
substantial evidence contradicts Romney’s claim that he was not
“active” in Bain
Capital in “any” way after 1999
To read the letter to DOJ and the
full legal analysis, click here:
http://bit.ly/OWScga (+)
Washington,
D.C.—Substantial
evidence that Mitt Romney may have committed a felony by lying on
his financial disclosure forms justifies a criminal
investigation—that’s the
conclusion of a legal analysis released today by MoveOn.org Political
Action.
This
morning, MoveOn.org submitted the 7-page legal analysis and a letter
calling for
an investigation to the U.S. Department of Justice. The
analysis
contends that there is good reason to believe GOP presidential nominee
Mitt
Romney may be criminally liable for false statements he made in 2011 in
his
federal financial disclosure filing (form SF-278)—in apparent violation
of the
federal False Statements Act (18
U.S.C. §1001).
Romney claimed in his
disclosure filing that he departed from
“any” active role in Bain Capital in 1999, which would be politically
convenient
because it was before Bain Capital was most heavily involved
in outsourcing jobs.
However, the
legal analysis released today, which includes a review of state law in
Delaware,
where Bain Capital was incorporated, concludes that existing
evidence is
“clearly inconsistent with [Romney’s] flat disavowal of ‘any’
involvement in the
‘operations of any Bain Capital entity in any way’” after 1999.
“Candidates for office—especially an office as
important as the presidency—need tell the truth, even when it isn’t
pretty,”
said Justin Ruben, Executive Director of MoveOn.org Political Action.
“When it
comes to disclosing their finances, that’s not just a moral obligation,
it’s a
legal one. We asked one of the country’s most prominent election law
attorneys
to look into Romney’s disclosures, and his conclusions are startling.
Romney’s
failure to level with voters may well be criminal. It is time for the
Justice
Department to investigate.”
The letter calling for an investigation and the
legal analysis were sent to the DOJ’s Chief of Public Integrity this
morning,
and MoveOn members are making phone calls to the DOJ today to urge that
it begin
an investigation.
Melanie Sloan, Executive Director of Citizens for
Responsibility and Ethics in Washington (CREW), reviewed the legal
analysis and
seconded MoveOn's call for an investigation. “CREW strongly supports a
Department of Justice investigation into the evidence that Mitt Romney
remained
involved with Bain Capital after 1999, given that he stated the exact
opposite
in his financial disclosure forms in apparent violation of the False
Statements
Act," Sloan said.
It is undisputed that Romney was the sole
director, Chief Executive Officer and President of Bain Capital, Inc.
at least
through the middle of 2000. MoveOn’s analysis finds that under Delaware
law,
while he held these titles, Romney was legally required to maintain
“reasonable
oversight” of Bain, which contradicts Romney’s claim in his 2011
disclosure
filing that he did not have “any” involvement in Bain after
1999.
To
view the letter and full memo released by MoveOn today click here: http://bit.ly/OWScga
To
speak with MoveOn Executive Director Justin Ruben or Legal Counsel
Joseph
Sandler, who authored the legal analysis, please contact Sahar Wali
at 832-606-8399.
To
speak with Melanie Sloan, Executive Director of Citizens for
Responsibility and
Ethics in Washington, for CREW’s take on the analysis, please contact
David
Merchant at dmerchant@citizensforethics.org or 202-408-5565.
###
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