The HyperTexts

Mitt Romney’s $101 Million Cayman Island IRA: Is he a tax cheat?
Is Mitt Romney a homophobic sociopath who lacks normal human empathy and compassion?
Mitt Romney Quotes

by Michael R. Burch

Who is Mitt Romney, and how did he end up shielding up to $101 million of his personal fortune in an offshore Cayman Island IRA? If Romney protected close to half his personal wealth from income taxes, that would suggest that his effective tax rate may be closer to 7% than 14%, and would also explain why he squirmed like a fish out of water when he was asked to follow his father's good example and disclose his tax returns. When I saw him hemming and hawing about disclosing his tax returns, I knew there was something in them that he didn't want the American public to see.

These and other issues will be discussed on this page. Romney has been accused of running an "Etch A Sketch" campaign, which was recently admitted by one of his campaign advisers. The plan seems to be that Romney will appear to be ultraconservative in the Republican primaries, then "shake to reset" and appeal to moderates in the general election. Since few conservatives will vote for President Obama under any circumstances, this deceptive plan has a chance of working. But perhaps the most troubling questions about Romney are not his personal and financial ethics, or his flip-flopping and pandering for votes, or his willingness to kowtow to the wealthiest 1% of Americans while leaving the remaining 99% in the lurch. In my opinion, the most troubling questions about the Romneybot have to do with his character. The quotes below betray a disturbing lack of empathy or compassion for anyone who isn't cruising down Easy Street in a Rolls Royce ...

We should double Guantanamo!
—Mitt Romney

Should we double the size of an extraterritorial prison camp best known around the world as a symbol of torture and illegal incarceration of prisoners as young as 13 and as old as 98?

Back in high school, you know, I did some dumb things, and if anybody was hurt by that or offended, obviously, I apologize for that … You know, I don’t, I don’t remember that particular incident [laughs]… I participated in a lot of high jinks and pranks during high school, and some might have gone too far, and for that I apologize.
—Mitt Romney on Fox News Radio

Romney was talking about an incident in which he and some of his high-school classmates viciously bullied a fellow student, John Joseph Lauber. Romney's classmates who participated in the bullying incident remember it, and have expressed remorse. If Romney can't even remember the incident, that suggests that he either did such things so frequently that they failed to register, or that he lacks normal human empathy and compassion, or both. His laughter while discussing the incident seems to suggest that he still doesn't "get" the seriousness of what he did. Here are the details, from a Washington Post article:

Mitt Romney returned from a three-week spring break in 1965 to resume his studies as a high school senior at the prestigious Cranbrook School. Back on the handsome campus, studded with Tudor brick buildings and manicured fields, he spotted something he thought did not belong at a school where the boys wore ties and carried briefcases. John Lauber, a soft-spoken new student one year behind Romney, was perpetually teased for his nonconformity and presumed homosexuality. Now he was walking around the all-boys school with bleached-blond hair that draped over one eye, and Romney wasn’t having it. “He can’t look like that. That’s wrong. Just look at him!” an incensed Romney told Matthew Friedemann, his close friend in the Stevens Hall dorm, according to Friedemann’s recollection. Mitt, the teenage son of Michigan Gov. George Romney, kept complaining about Lauber’s look, Friedemann recalled. A few days later, Friedemann entered Stevens Hall off the school’s collegiate quad to find Romney marching out of his own room ahead of a prep school posse shouting about their plan to cut Lauber’s hair. Friedemann followed them to a nearby room where they came upon Lauber, tackled him and pinned him to the ground. As Lauber, his eyes filling with tears, screamed for help, Romney repeatedly clipped his hair with a pair of scissors. The incident was recalled similarly by five students, who gave their accounts independently of one another. Four of them — Friedemann, now a dentist; Phillip Maxwell, a lawyer; Thomas Buford, a retired prosecutor; and David Seed, a retired principal — spoke on the record. Another former student who witnessed the incident asked not to be identified ... “It happened very quickly, and to this day it troubles me,” said Buford, the school’s wrestling champion, who said he joined Romney in restraining Lauber. Buford subsequently apologized to Lauber, who was “terrified,” he said. “What a senseless, stupid, idiotic thing to do.” “It was a hack job,” recalled Maxwell, a childhood friend of Romney who was in the dorm room when the incident occurred. “It was vicious.” “He was just easy pickin’s,” said Friedemann, then the student prefect, or student authority leader of Stevens Hall, expressing remorse about his failure to stop it.

David Seed, an onlooker who did not participate in the bullying, later apologized to Lauber for not doing more to help prevent it. The only person involved not to express remorse, and who claims not to remember what happened, is Romney. According to his campaign spokeswoman, Andrea Saul, “Governor Romney has no memory of participating in these incidents.”

Atta girl!
—Mitt Romney taunting a closeted gay high school student, Gary Hummel

Here's what Amy Davidson wrote about the first incident for The New Yorker: "Does he [Romney] count this as a high jink or a prank? It was neither; it is hard to imagine that hurt, rather than being the byproduct, was anything other than the point of the attack on Lauber. In terms of what a gay teen-ager might encounter, and what other boys might go along with at a school like Cranbrook, 1965 was different; but memory and empathy are not qualities that have only been invented since then. As our country has changed, and the other boys became men, they seem to have turned the events of that day over in their minds, not once, but many times, and made something new out of it. That’s why it’s all the worse that Romney says he can’t remember—that he walked blithely away from the boy crying on the ground and kept going. Was there nowhere in him for that sight to lodge? ... And how far has Romney moved? This story is resonant because one can, all too easily, see Romney walking away even now, or simply failing to connect, to grasp hurt ... Who else might he walk away from?"

Josh Barro, writing for Forbes, made another very interesting point: "The story is more damning for Romney in other ways. It’s telling that the campaign seems to be having so much difficulty finding any friends from the Cranbrook School to talk to the media about what a good guy he was. The Romney camp reached out to Stuart White (who threw the party where Mitt and Ann Romney met) asking him to make supportive remarks. Instead, White contacted ABC News and expressed his ambivalence to do so, saying, “it’s been a long time since we were pals.” Another old friend of Romney’s told ABC on background that Romney’s behavior in high school was  “like Lord of the Flies” and that a number of people from Cranbrook have “really negative memories” of him. Is there really no one from Cranbrook that Romney can persuade to vouch for him? The whole thing gives the sense that Romney was a Regina George-like figure in high school—“popular,” but mostly because other students were afraid to cross him ... But does Romney have empathy for people who are different from him? The tone of Romney’s reaction today does not look good on the empathy front. Referring to an assault on a classmate as “hijinks and pranks” is pretty tone-deaf ... Romney’s actions as governor also suggest that he doesn’t view bullying as a significant problem. In 2006, Romney threatened to dissolve the Governor’s Commission on Gay and Lesbian Youth, established by Republican Governor William Weld in 1992, and then to expand its mission to cover all youth. The legislature established a independent commission, overriding a Romney veto, in response to these threats. A key part of the commission’s mandate is the prevention of anti-LGBT bullying in schools. His administration also repeatedly delayed the publication of an anti-bullying handbook for public schools, which had been developed in 2002 by Governor Jane Swift’s Task Force on Hate Crimes. Kathleen Henry, who chaired the Commission on Gay and Lesbian Youth at the time, said she thought the guidebook was held up due to its LGBT-related content, particularly content to do with transgender students. Ultimately, the handbook was published under Governor Deval Patrick, six years after it was first drafted."

Barro concluded his article by saying, "This actually goes to Romney’s greatest weakness as a candidate. Nobody knows how he really feels or what he cares about. People look at him and they can’t see evidence that he understands or cares about their needs. They’re not sure he can relate to people who are different from him. This incident, and his nonchalant reaction to being reminded about it, reinforce the impression that Romney lacks empathy."

I'm not concerned about the very poor. We have a safety net there.
—Mitt Romney

Not concerned, when the Grand Old Pontiffs, led by men like Romney, want to slash the safety nets of what they call "entitlements" while preserving tax cuts for the super-rich and waging more trillion-dollar wars in the Middle East, the next one presumably against Iran? Who will end up dying in those unwinnable wars? The children of the very poor, of course.

I should tell my story. I'm also unemployed.
—Mitt Romney

Romney, speaking to unemployed Floridians, once again demonstrated an amazing lack of empathy and concern for people who are actually down on their luck. His net worth has been estimated at $200 to $250 million.

I get speaker's fees from time to time, but not very much.
 —Mitt Romney

Romney earned $374,000 in speaking fees in a single year, according to his personal financial disclosure. Once again Romney demonstrates his extreme disconnect from average Americans, who would consider making that kind of money from a few speaking engagements a real windfall (please pardon the pun).

I purchased a gun when I was a young man. I've been a hunter pretty much all my life.
—Mitt Romney

Romney's campaign later said he'd been hunting twice, once when he was 15, the other time at a Republican fundraiser when he was 59. Hunting twice in 44 years hardly qualifies one as the Great White Hunter, but perhaps more unsettling than his blatant vote-pandering is Romney's desire to brag about his hunting/killing prowess.

PETA is not happy that my dog likes fresh air.
—Mitt Romney

Oh, really? Romney strapped a crate containing his Irish Setter, Seamus, to the roof of his station wagon for a twelve-hour drive from Boston to Ontario. When the terrified dog lost control of its bowels, Romney pulled over, sprayed the car and the dog down with a hose, then resumed driving. PETA president Ingrid Newkirk noted: "Any individual who does something like that may have what scientists term the absence of the mirror neuron, i.e., a pin-pointable absence in the brain of the characteristic which allows the individual to feel basic compassion. The implications are frightening ... Mr. Romney seems to hold the very old-fashioned idea that he needs to actively show he is heartless, hence the hunting claims he has made. Not subsistence hunting, but pride in killing defenseless animals for sport, for fun, for show. In the case of the dog on the roof of the car, if this is true, quite remarkably it obviously wasn't for show as only his own children were watching, a lesson in cruelty that was also wrong for them to witness. There was also the obviousness of the situation. Thinking of the wind, the weather, the speed, the vulnerability, the isolation on the roof, it is commonsense that any dog who’s under extreme stress might show that stress by losing control of his bowels: that alone should have been sufficient indication that the dog was, basically, being tortured. If you wouldn’t strap your child to the roof of your car, you have no business doing that to the family dog! I don't know who would find that acceptable."

Here's a comment I found online that I believe makes germane points about Romney: "The classic definition of a sociopath is someone who can feel his own pain, but is incapable of feeling another's. Remember how desperately wounded George Bush felt when Kanye West accused him of not caring about black people? And how utterly untouched he appeared to be in the face of 1500+ such black people, dead in New Orleans? Classic sociopath. Mitt Romney suffers from exactly the same pathology—strap the dog on the roof of the car and off you go on your nice vacation. Trim the hair on the "maybe homosexual" because he shouldn't look like that, and off you go to finish your homework. There's a piece missing in Mitt, and it's an essential quality in the man or woman this country needs as its President at this time in our history. We need a Lincoln or a Franklin Roosevelt—someone with not only the necessary talents, skills, capabilities, experience, etc. to lead this nation, but someone who also possesses the capacity for empathy and the moral compass required to understand in which direction we should be headed. Mitt Romney is not the man we need—now or ever—and he would be a total disaster as President of the United States. Vote."

Here's another pertinent comment that I found online: "Like most people, I don't believe he wouldn't remember an incident like this! But for the sake of argument, if a person really did not remember holding a kid down and cutting [his] hair wouldn't the natural reaction to be horrified and indignantly deny the accusation? Just saying 'I don't remember' without expressing any outrage is alarming and emotionally backwards in and of itself. Unlike most people posting, I really was leaning towards voting for Romney but this story sounds bad any which way you look at it. Also, on a purely pragmatic level. I think that this kind of bullying shows a low level of emotional intelligence that could actually be dangerous when it comes to negotiating with enemies or dealing with truly tough, real-world situations. Regardless of political leanings, any leader who is strong and effective has to also be sensitive, quick with nuance, and have sharp instincts in order to survive and fight in hard times. All in all, a very worrying story."

And here's a third comment: "I'm sorry, but I must speak my mind on this. I think the concern over this—and a pattern of other incidents—extends far beyond whether he was a spoiled, rich boy. The real concern about Romney is that his actual behavior displays anti-social tendencies, i.e., sociopathic. Sociopaths are very, very good at concealing their real "feelings," if you can call them that, as they climb to the top of the human pyramid. They crave power over others, and see no reason for the normal humility and concerns that many of us feel when in the public's service. Here are a list of qualities for the anti-social, sociopathic person: - Glibness and Superficial Charm: Check. - Manipulative: One doctor's definition: "Fail to recognize the rights of others and see their self-serving behaviors as permissible. They appear to be charming, yet are covertly hostile and domineering, seeing their victim as merely an instrument to be used. They may dominate and humiliate their victims." The story speaks for itself. Check. - Grandiose Sense of Self: Check. - Pathological Lying: No memory? At all? No problem saying so? Check. - Lack of Remorse, Shame or Guilt: Third-person apology? Check. - Shallow Emotions: Another definition: "When they show what seems to be warmth, joy, love and compassion it is more feigned than experienced and serves an ulterior motive. Outraged by insignificant matters, yet remaining unmoved and cold by what would upset a normal person. Since they are not genuine, neither are their promises." A politician's promises? Not genuine? The flip flopping on what should be heart-felt social issues attests to this issue. Check. - Callousness/Lack of Empathy: Well, that is what this article is about. The excitement of cruelty is one of the few, tenuous connections to true emotions they are capable of, which if emphasized, extends into psychotic behaviors. Thus, this story from Romney's past is not only revelatory, but deeply concerning. Is the Mormon persona something that he is using as a disguise, a red herring? If it is, he probably wouldn't know himself, since his brain may be disconnected from the genuine and sincere feelings the rest of us experience daily. I am very, deeply concerned. God bless America. We may be in great need of His help, very soon."

Corporations are people, my friend… of course they are ... Human beings, my friend.
—Mitt Romney

Does the Romneybot confuse heartless corporations with human beings because he lacks a human heart himself?

Planned Parenthood, we're going to get rid of that.
—Mitt Romney

Getting rid of Planned Parenthood and denying women access to contraceptives seem to be high on the Republican Party's agenda. But what happens to all the girls and women who aren't ready to become mothers and/or can't afford to have children? Where is there any empathy or compassion for them, or the unwanted babies? Republicans have made it clear that they have no intention of helping out people in need, so forcing girls and women to have babies they don't want or can't afford seems truly heartless. Romney says it's wrong to borrow money from China to fund Planned Parenthood, but he seems quite content to borrow trillions from China to fund new military hardware and wars in the Middle East. If it's wrong to borrow a few million dollars to fund contraceptives, family planning and healthcare for girls and women, isn't it much worse to borrow trillions of dollars to attack other nations?

I would repeal Obamacare.
—Mitt Romney

But "Obamacare" is obviously modeled after Romney's own health care plan, Romneycare. As President Obama pointed out, Romney seems to be pretending that the two plans are radically different, saying: "We designed a program that actually previously had support of Republicans, including the person who may end up being the Republican standard bearer and is now pretending like he came up with something different." Romney's Massachusetts health care plan served as a model for the Affordable Care Act ("Obamacare"). Why does he now rail against a very similar plan? Probably because the only way he can get elected is to appeal to right-wing conservatives who despises anything President Obama does, on general principle, even if he does what Republicans formerly suggested. Repealing Obamacare without coming up with something better might cause American citizens to suffer and die, but that seems to be secondary to the all-important goal of Mitt Romney becoming president, regardless of the cost.

I will never, ever apologize for America.
—Mitt Romney

But obviously when the United States makes mistakes, apologies are in order. Ronald Reagan signed legislation that apologized for the internment of Japanese Americans during World War II. On August 10, 1988, Reagan said himself that "We admit a wrong." Also, Reagan's Justice Department issued a formal apology to France for protecting Klaus Barbie, a Nazi whom U.S. intelligence recruited and shielded in the aftermath of World War II. Reagan also expressed regret for the U.S. military shooting down an Iranian passenger jet over the Persian Gulf and offered compensation to both Iranian and non-Iranian victims.

I am big believer in getting money where the money is. The money is in Washington.
—Mitt Romney

Romney is a braggart who waffles from position to position, depending on the people he's trying to impress or gain votes from. When he's appealing to conservatives for votes, he's a down-on-his-luck unemployed hunter who deplores Washington insiders and spending. But when he's trying to impress someone else, he's the consummate Washington insider who knows how the get the big bucks from the federal government. Romney called the auto industry bailouts "crony capitalism on a grand scale," but he wasn't above lobbying Congress to bail out the Salt Lake City Olympics, an intervention that ended up costing US taxpayers about $1.3 billion, according to TIME (August 29, 2011).

Before I made a statement [about the Palestinians] I’d get on the phone to my friend Bibi Netanyahu and say: "Would it help if I say this? What would you like me to do?"
—Mitt Romney

Here's an excerpt from the New York Times about the statement above, which seems to suggest that Romney will allow Israel to either set or direct US foreign policy in the Middle East: "Romney has suggested that he would not make any significant policy decisions about Israel without consulting Mr. Netanyahu — a level of deference that could raise eyebrows given Mr. Netanyahu’s polarizing reputation, even as it appeals to the neoconservatives and evangelical Christians who are fiercely protective of Israel. In a telling exchange during a debate in December, Mr. Romney criticized Mr. Gingrich for making a disparaging remark about Palestinians, declaring: 'Before I made a statement of that nature, I’d get on the phone to my friend Bibi Netanyahu and say: ‘Would it help if I say this? What would you like me to do?’' Martin S. Indyk, a United States ambassador to Israel in the Clinton administration, said that whether intentional or not, Mr. Romney’s statement implied that he would “subcontract Middle East policy to Israel.” “That, of course, would be inappropriate,” he added.

Romney's Fiscal Insanity

Romney claims to have a plan for America's financial salvation. He confidently announces that he will put Americans back to work, end Obamacare with a wave of his magic wand, balance the budget, restore the federal government's AAA credit rating, etc. But in reality his "plan" boils down to throwing even more money at the super-rich, due to the failed thinking that making the rich richer will cause money to "trickle down" to the less affluent. Albert Einstein, a very smart cookie, once defined insanity as doing the same thing over and over again, hoping for different results. By that rule of thumb, Romney is insane, and so is the GOP.

After his primary victories in Michigan and Arizona, Romney detailed a list of tax changes designed to delight wealthy Americans, while sending everyone else to the poorhouse. He promised to enact an "across-the-board, 20 percent rate cut for every American," to "repeal the Alternative Minimum Tax," and abolish the "death tax" ("death tax" is conservative-speak for the estate tax paid by by only the wealthiest Americans). He also pledged to lower the corporate tax rate to 25 percent, to "make the R&D tax credit permanent to foster innovation," and "end the repatriation tax to return investment back to our shores."

That's truly wonderful for the Warren Buffets and Bill Gateses of the world, but what about the rest of us?

Perhaps at first glance an across-the-board tax cut sounds nicely fair and balanced. But a recent Tax Policy Center study of the impact of a 20% across-the-board cut indicated that the wealthiest 0.1% would get an average tax reduction of $264,000. The poorest 20% would get $78, and those in the middle would get an average of $791. And the TCP predicted that the plan would add more than $3 trillion to the deficit over the next decade.

Romney Betrays His Roots and Religion

"His father was a beloved governor because he was pragmatic and compassionate and moderate," former Michigan Governor Jennifer Granholm told The National Memo, referring to the late George Romney, who was a popular auto executive before he was elected Michigan's top official. "Mitt Romney, while he may have been some of those things while he was governor of Massachusetts, is vying to outflank Rick Santorum on the right, and he is not his father. He has morphed into something his father would not recognize."

Like many other Republicans who profess to be Christians, in his eagerness to be considered a "conservative's conservative," Mitt Romney has forgotten or ignored the teachings of Jesus, the apostles and Hebrew prophets, all of whom said that true religion is to practice chesed (mercy, compassion, lovingkindness) and social justice. Ironically, the GOP's alpha males who profess to "believe" in God are now practicing social and economic Darwinism: the survival of the strongest and most ruthless at the expense of everyone else, particularly mothers, children, the elderly, the sick, the unemployed and the poor. Just try finding a Bible verse to support that type of behavior!

Romney Waffles Because He Panders to Religious Fanatics in His Quest for Votes

When asked to define himself in a single word during a recent debate, Mitt Romney chose the word "resolute." But Romney seems to always be willing to waffle if doing so will gain him votes and campaign contributions. Take, for instance, his inconsistent stance on global warming. In his book No Apology, he wrote, "I believe that climate change is occurring — the reduction in the size of global ice caps is hard to ignore. I also believe that human activity is a contributing factor. I am uncertain how much of the warming, however, is attributable to man and how much is attributable to factors out of our control." But if global warming is obviously real, it doesn't matter a hill of beans who is responsible. All that matters is what human beings can do to keep ice caps and glaciers from melting to such an extent that sea levels rise and people and animals living on low-lying islands and in coastal regions begin to suffer and die in large numbers.

But recently Romney altered his position, rather obviously in order to win the votes of conservative Christians whose "faith" leads them to ignore facts and science. Romney now opposes spending money to address global warming because it can't be "proven" that human beings are "responsible." Well, the dinosaurs weren't "responsible" for asteroids hitting the earth and leading to the climate change that caused their extinction, but they became extinct nonetheless. President Barack Obama has taken the much more intelligent and reasonable position that we need to do whatever we can to do to deal with a warming planet and rising sea levels. Republicans like Romney are pandering to irrational people in order to obtain their votes and campaign contributions. That is obviously a very foolish, very dangerous thing to do.

In my opinion, Mitt Romney is neither resolute, nor acting responsibly. He seems to believe that his getting elected president is vastly more important that what happens to our planet, more than eight billion human beings and trillions of animals.

The Romney-Bot Delivers Standard GOP Propaganda

Mitt Romney certainly looks "presidential," but if we tear our eyes away from his impressive figure long enough to actually heed his words, he sounds like a robot programmed to mindlessly drone the standard Republican mantras: “Everything bad that ever happened to Americans is the fault of Barack Obama, and if you elect me I will wave my magic wand and fix everything my first day in office, by repealing this, that and the other piece of socialistic legislation.” He makes it sound as if jobs and money will fall magically from trees, the day he becomes president.

But like most robots, Romney seems to lack empathy for average Americans. He is certainly no Ronald Reagan. While he’s not as creepy as Richard Nixon, he seems even more implausibly remote and alien. Take, for example, his recent remark that “I’m not concerned about the very poor. We have a safety net there. If it needs a repair, I’ll fix it. I’m not concerned about the very rich; they’re doing just fine.” He seems to somehow calmly equate the pain-wracked struggles of the very poor with the mild discomforts of the very rich (who just happen to be his friends).

And there seems to be a pattern of such disconnects. Not long ago, Romney opined that his speaking fees of $374,327 for a single year were “not very much.” In June of 2011, he told unemployed Florida workers that he understood their plight, saying. “I’m also unemployed. I’m networking. I have my sight on a particular job.” If he was trying to be funny, the joke undoubtedly fell flat, because Romney has a personal safety net of $250 million and doesn't need the "job" he's seeking in order to feed his family. At one of the early Republican debates, he offered to bet Rick Perry $10,000 — an amount that, however facetious, reminded voters just how rich Romney really is, and how carefree he is about money.

Romney’s $101 Million Cayman Island IRA

How did Mitt Romney end up with a $101 million Cayman Island IRA? It seems Romney may have sheltered all or most of his Bain Capital wealth from taxes by putting it into an offshore "IRA" and only allowing it to be valued correctly once the appreciation was protected from taxes. If there is some other reasonable explanation for how anyone's IRA can be so huge, when contributions are limited to a few thousand dollars per year, I'd like to hear it.

I first became suspicious about Romney's finances when he started squirming like a fish out of water when asked about releasing his tax returns during a Republican presidential debate. I was sure at that moment that there was something in his tax returns that he didn't want the public to see. Ironically, Romney's father, George W. Romney, had voluntarily released his tax returns for twelve years when he became a presidential candidate in 1967. 

But Mitt Romney's public squirmings told me that something was obviously wrong with his tax returns. Then later something in a Huffington Post article about his tax returns caught my eye, because a single Bain fund was valued at $5 million to $25 million, and yet it was called only "part" of his total IRA. Most IRAs are relatively small because the contributions are capped at a few thousand dollars per year. Romney's IRA seemed impossibly large, and it also seemed extremely odd that it was made up of multiple offshore Bain investments in the Cayman Islands, which are world-famous for two things: beautiful beaches and hideous tax shelters. So I began trying to determine what Romney's full IRA amounted to. Here's a Reuters report that I found on the subject ...

How did Romney's IRA grow so big?
Reuters
by Lynnley Browning
Monday, January 23, 2012

In the wake of news reports last week that presidential contender Mitt Romney owns an individual retirement account worth as much as $101 million, questions are growing over how it could have gotten so big when contribution limits are capped at $5,000 or $6,000 a year.

Tax lawyers and accountants suggest an answer: Romney may have made use of an Internal Revenue Service loophole that allows investors to undervalue interests in investment partnerships when first putting them into an IRA. These assets can produce returns far in excess of those that could be generated from other investments made at the capped level.

An investor could even set an initial value for a partnership interest at zero dollars, because under tax regulations an interest in a partnership represents future income, not current value, said Chris Sanchirico, co-director of the Center for Tax Law and Policy at the University of Pennsylvania Law School.

Whether Romney used this technique, which is legal, when he put partnership interests into his IRA is a question that won't likely be answered when he discloses his 2010 tax returns on Tuesday.

Romney's IRA, valued at between $20.7 million and $101.6 million, as reported by The Wall Street Journal last Thursday, holds stakes in 13 investment entities run by Bain Capital, the private-equity firm he cofounded and led for 13 years.

"One possibility for its size is that he put his Bain partnership interests into the IRA and valued them at a very low number," said David Weisbach, a law professor who focuses on tax at the University of Chicago Law School.

Andrea Saul, a spokeswoman for the Romney campaign, declined to respond to emails and calls.

In the wake of growing scrutiny of his personal wealth, Romney, one of the wealthiest contenders ever for the White House, told Fox News host Chris Wallace on Sunday that on Tuesday he would release his 2010 tax returns and estimates for his 2011 return.

The release will not provide much insight into his IRA. That is because a personal income-tax return shows IRA contributions and withdrawals only for the year of the return, and not for previous years, and does not show whether any contributions were in the form of undervalued partnership interests. While an IRA investor can sometimes be required to file a separate return for the IRA, it is unclear whether Romney intends to release any such returns.

Romney's personal financial summary, disclosed last August under federal election rules, shows that his IRA holds his most lucrative investments, which are stakes in partnerships run by Bain Capital. Those stakes include Bcip Trust Associates III, a Bain fund that is his single largest investment, with assets valued at $5,000,001 to $25,000,000. Bcip Trust Associates III produced income to Romney's IRA of over $5,000,000 over 2010 and through August 12, 2011, according to the summary.

Robert Stack, head of international tax at law firm Ivins Phillips & Barker, said it is possible that Romney's IRA grew so large not only because of an increase in the value of the funds in which it invests but also through lucrative profits, typically 20 percent of investment gains per year, that funds can generate for their general partners.

It is not known whether Romney is a general partner in the Bain funds, meaning invested in the partnership responsible for managing the funds, or simply an investor in the funds. The Romney campaign has declined to comment on this issue.

The general partners' cut of the profit, known as carried interest, is taxable each year if the funds in which the IRA is invested earn certain management fees or borrow to make their investments. Tax lawyers say they want to know whether Romney's IRA holds any carried interest and whether it has paid tax on it—something not disclosed in his personal financial summary or on a federal income tax return. "In the context of a $100 million IRA, that is what we would want to know," said David Miller, a tax lawyer at Cadwalader Wickersham & Taft.

The average IRA held by Americans holds $42,500, according to the Investment Company Institute, a trade group. While the Romney campaign has said that some of his IRA consists of retirement savings rolled over from previous plans, accountants say rollovers would not likely explain the size of his IRA.

"Even if he rolled over a 401k, with the annual caps on contributions, you're still only talking about a few million dollars," said Robert Green, an accountant who is founder of Green Trading, a tax and accounting firm that caters to the investment industry. Last year, individuals could contribute a maximum of $16,500 a year to their 401(k) plans.

Tax lawyers say it is also important to know whether Romney's IRA holds stakes in Bain funds directly, or through related, offshore entities.

These entities, commonly used by tax-exempt investors such as Romney's IRA, legally allow the investors to avoid having to pay a special tax, known as the unearned business income tax, or UBTI.

While the Wall Street Journal suggested on Thursday that avoidance of the special tax was a big reason for the size of Romney's IRA, some tax lawyers said that its size might simply reflect the extreme profitability of a carried interest held by the IRA. "The best guess is that he put the carried interest into the IRA," Miller said.

Romney's IRA produced income of $1.5 million to $8.5 million over 2010 and through August 12, 2011, according to his financial summary, but it is unknown what, if any, taxes the IRA may have paid on its carried interest. Saul, Romney's campaign spokeswoman, declined requests for comment.

(Reporting by Lynnley Browning; Additional reporting by Gregory Roumeliotis; Editing by Amy Stevens, Eddie Evans and Carol Bishopric)

The average American IRA is $42,500, so Romney’s seems outrageously large. His IRA produced income of $1.5 million to $8.5 million between 2010 and 2011, so it seems quite possible that it may be closer to the high end estimate of $101.6 million. Romney’s total wealth has been estimated at around $200 million. If he shielded half his money from all taxes, that would seem to drop his effective tax rate from around 14% to around 7%. And that would explain why he looked like a fish out of water when he was asked about disclosing his tax returns. In this case, I suspect that two plus two probably results in four ... as in four more years for President Barack Obama.    

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