Offshore tax shelters are a great way to hide income from the government and reduce your personal taxes. One of the masters of this technique is, of course, Mitt Romney. He knows how to exploit every possible tax loophole to keep his effective tax rate at 13.9%. And Mitt Romney will fight to keep all of these loopholes legal and expand loopholes for the hard-working billionaires that fund his Super PAC.
A February 8, 2012, article in the New York Times explains how you can use a technique that allows nonprofit institutions and large retirement funds to exploit the advantages of shell companies set up in tax havens like the Cayman Islands by investing money with private equity firms like Bain Capital, which Romney ran. Ordinarily, such private equity investments are frequently subject to something called the unrelated business income tax. But by going offshore, pension funds, universities, foundations and even large individual retirement accounts can structure those investments to avoid that heavy tax.
You can be sure that if elected president, Mitt Romney will do everything in his power to keep this practice and others like it legal. That is why billionaires and Wall Street tycoons will unite behind him. They believe that slashing public education funds, healthcare, and job programs is a better way to reduce the deficit than ending such loopholes. This is what Mitt Romney means when he calls his opponents ”economic lightweights”. They wouldn’t know the first thing about moving funds overseas to avoid paying taxes.