Liberal Website That Attacked Romney’s Cayman Island ‘Schemes’, Hides Their Income in The Cayman Islands
Earlier today, the liberal website Gawker did a document dump including 950 pages worth of confidential documents affiliated with Bain Capital.
The idea was to expose Mitt Romney’s alleged tax-dodging schemes with offshore accounts in the Cayman Islands.
Today, we are publishing more than 950 pages of internal audits, financial statements, and private investor letters for 21 cryptically named entities in which Romney had invested—at minimum—more than $10 million as of 2011 (that number is based on the low end of ranges he has disclosed—the true number is almost certainly significantly higher). Almost all of them are affiliated with Bain Capital, the secretive private equity firm Romney co-founded in 1984 and ran until his departure in 1999 (or 2002, depending on whom you ask).
Many of them are offshore funds based in the Cayman Islands. Together, they reveal the mind-numbing, maze-like, and deeply opaque complexity with which Romney has handled his wealth, the exotic tax-avoidance schemes available only to the preposterously wealthy that benefit him, the unlikely (for a right-wing religious Mormon) places that his money has ended up, and the deeply hypocritical distance between his own criticisms of Obama’s fiscal approach and his money managers’ embrace of those same policies.
So if being based in the Cayman Islands immediately translates to a ‘tax-avoidance scheme available only to the preposterously wealthy’, then why is Gawker complaining?
After all, the Gawker Media Group is domiciled in – you guessed it – the Cayman Islands.
Gawker Media has been going through a big corporate revamp over the past year or so. The ultimate parent company has never been in the U.S.: it used to be Blogwire in Hungary, but now Blogwire Hungary has become a subsidiary of a Cayman Islands entity called Gawker Media Group Inc, which also owns various U.S. operations like Gawker Media LLC, Gawker Entertainment LLC, Gawker Technology LLC, and Gawker Sales LLC.
Then there’s this…
The Hungarian companies get all of Gawker’s international income, which flows in from 13 different salespeople in ten different countries and which, since it’s international income flowing to a Hungarian company owned by a Cayman Islands parent, is basically pure profit which never comes close to being taxed in the U.S. The result is a company where 130 U.S. employees eat up the lion’s share of the U.S. revenues, resulting in little if any taxable income, while the international income, the franchise value of the brands, and the value of the technology all stays permanently overseas, untouched by the IRS.
Now, why would the White House not want the American public to know that the new head of Regulatory Affairs had an early stint at Bain? Probably because they’ve been working overtime in trying to portray the company as an evil, capitalist corporation with no regards to the feelings of employees.
President Obama’s campaign just loves to refer to rival Mitt Romney’s tenure at Bain Capital. They’ve made plenty of hay out of his time with the company (“home of the vulture capitalists!”), bringing it up at every turn possible.
But in one context, the White House dared not utter the B-word. President Obama named Boris Bershteyn to step in to head the Office of Information and Regulatory Affairs after the departure of Cass Sunstein, but his official bio makes no mention of Bershteyn’s time at consulting firm Bain & Co. (that’s where Romney worked before founding the spinoff private equity firm Bain Capital).
According to his profile in LinkedIn, Bershteyn was an associate consultant at Bain & Co. in the early 2000s, before he got his Yale Law degree.
Does this mean that Bershteyn was also a big fan of ‘outsourcing’ jobs? Was he a co-conspirator in the murder of Joe Soptic’s wife? Or does this simply undermine the Obama campaign’s messaging about the evil that is Bain Capital and Mitt Romney?
Either way, the White House apparently had a reason for keeping this information from the public’s eyes.
Usually when I hear the folks over at the Obama campaign speaking, it takes a matter of minutes and a good internet connection to recognize that what is coming out of their mouths is a slew of lies. They lie so often, it’s commonplace.
While it may mean the freezing over of the seventh circle of hell is inevitable now, as is the aerial ability of swine, the Obama campaign finally had to tell the truth. How sad it is that the truth meant admitting they had been lying, and lying rather blatantly.
Obama campaign spokeswoman Jen Psaki acknowledged Thursday that the campaign was no longer pleading ignorance about the story of a man who has appeared in both a super PAC ad and a campaign ad.
“No one is denying he was in one of our campaign ads. He was on a conference call telling his story,” Psaki told reporters on Air Force One.
Missouri steelworker Joe Soptic starred in an Obama campaign ad and participated in a conference call with the campaign in May, as POLITICO reported Wednesday. He resurfaced this week in a Priorities USA Action super PAC ad, charging that his wife died of cancer after Mitt Romney’s former private equity firm laid him off.
Distancing themselves from the controversial ad, Obama campaign staffers initially denied knowledge of Soptic’s story — despite the fact that he was in an Obama campaign ad.
Adviser Robert Gibbs said he didn’t know “specifics,” while deputy campaign manager Stephanie Cutter said on CNN: “I don’t know the facts about when Mr. Soptic’s wife got sick or the facts about his health insurance.”
And yesterday on Air Force One, Psaki said, “we don’t have any knowledge of the story of the family.”
As a reminder, this is an ad that Brent Budowsky of the Hill said:
“It is sickening. It is despicable. It is unworthy of a sitting president. It is unworthy of a candidate for president. It is unworthy even of the campaign from hell we are witnessing.”
It is all of these things and more. The question now is the same thing we would ask our kids in a similar situation – What is worse, the act itself, or the lies trying to cover it up?
Should we really be questioning and reprimanding the President of the United States as if he were a child?
As a reminder, here is the disgraceful ad in question, which itself has been debunked as a lie…
So, while the mainstream media has everyone focused on that whole Bain distraction, the Romney campaign has produced a powerful video which reminds us what the President is doing here – trying to scare people away from their opponent by using distractions and stale tactics.
Team Mitt needs to get the focus back on things that matter – such as the economy and this administration’s complete and total failure in improving things in this country.
The best part of this video? Obama himself does the talking. Watch it below…
No fresh ideas, no record to run on… Mr. President – What happened?
Looks like Mitt Romney and the Republican Committee are getting tired of outsourcing accusations that the Obama campaign has heaped upon him for his time at Bain Capital.
Republicans are turning the tables on the Obama campaign, launching an aggressive effort to cast the president as the “outsourcer in chief” in response to Democrats labeling Mitt Romney an “outsourcing pioneer.”
The belated counter-attack comes weeks after President Obama’s campaign seized on a Washington Post story examining how Romney’s former company Bain Capital invested in firms that provided outsourcing services like call centers.
As it happens, the Republican National Committee on Tuesday pointed to a new Post story — this one examining Obama’s “outsourcing” record — as the GOP unveiled a website that outlines in fine detail how federal dollars under the Obama administration funded foreign projects.
Sure enough, at a Town Hall meeting today in Grand Junction, Colorado, Mitt Romney had this to say (video below):
“By the way, he likes to talk about outsourcing. He’s run some interesting attack ads on me on that topic. You may have seen that and interestingly, an independent, unbiased fact-checking organization looked at his ads and looked at that attack and said it’s false and misleading. But it is interesting that when it comes to outsourcing, that this president has been outsourcing a good deal of American jobs himself by putting money into energy companies, solar and wind energy companies that end up making their products outside the United States. If there is an outsourcer-in-chief, it’s the President of the United States, not the guy who’s running to replace him.”
The counterattack comes a little late, as polls have indicated that the President’s attacks on Romney’s work at Bain have been working.
Is this new tactic going to slow down that trend?
Carney is normally a wordsmith, in that he can say words in a certain order that give off the appearance of actually providing a thought.
In other words – he lies well.
But words failed Mr. Carney yesterday when he tried to explain to a reporter the main difference between Obama’s investment of taxpayer money in Solyndra, and Romney’s past investment of private money in Bain Capital.
Last thing. If that’s the argument, how is that different from Romney’s argument on Bain Capital, which is that many succeeded and a few failed?
And here is a screen capture that pretty much summarizes the ensuing explanation…
Look, there, there, there is the… the difference in that… your overall view of what your responsibilities are as president, and what your view of the economic future is. And, and the president believes, as he’s made clear, that a president’s responsibility is not just to, uh… those who win, but those who, for an example, in a company where there have been layoffs or a company that has gone bankrupt, that, you know, we have to make sure that those folks have the means to find other employment, that they have the ability to train for other kinds of work, and that’s part of the overall responsibility the president has.
Ohhhh… Now we get it.
Thanks for the clarification…