Romney’s offshore tax havens helping cause the deficit problem he complains about

Updated
By Zaid A. Jilani

Democrats are pursuing a new line of attack on Mitt Romney, pointing to his use of offshore tax havens to hide his wealth, and demanding that he release more of his tax returns to shed light on his complicated personal finances.

On PoliticsNation, The Huffington Post’s Ryan Grim pointed out that the deficit that Romney rails against is actually caused in part by the use of offshore tax havens to dodge taxes in the United States.

“One reason we don’t have that money [to pay down the deficit] is that so many rich people can afford sophisticated accountants who can hide the money in offshore tax havens,” Grim said. “Then they can hire lobbyists to write loopholes in the tax code. Now he wants to run for president complaining about the deficit and saying the tax code is too complicated. At some point you have to say, ‘Wait a minute. What are you talking about here?’”

And it’s true. The U.S. Public Interest Research Group estimates that offshore tax havens cost the U.S. Treasury as much as $100 billion a year. In 2010, “making up for this lost revenue cost the average U.S. tax filer $434 … enough money to feed a family of four for three weeks,” a USPIRG report found.

In other words, if it weren’t for Mitt Romney and his friends hiring armies of lawyers and accountants to find ways to reduce their tax bills, the deficit wouldn’t be as large as it is.

 

 

 

Mitt Romney

Romney's offshore tax havens helping cause the deficit problem he complains about

Updated