Top Dem On Romney: People With Money In Caymans Are 'Smuggling Drugs' Or 'Sheltering Money'

There is no doubt that Democrats are reveling in the fact that it has been the Republican Party, and not the Obama campaign, that has helped start the process of painting Mitt Romney as a tax-payment ducking, one percent elitist.

But on Friday afternoon, South Carolina Democratic Party Chairman Dick Harpootlian took the meme to a new place, tying Romney, Bain Capital and drug smugglers together in one corrupt little bow.

"This is a guy who continues to tell us he got where he was because of his hard work and good luck. It wasn't his hard work and good luck. It was his good luck to be born to a daddy who worked hard," Harpootlian said in an appearance on MSNBC's "Politics Nation."

"And it's becoming clear that he's richie rich. I mean he's got money in the Caymans. What does that mean? The only people I ever hear about with money in the Caymans are doing something illegal. They are smuggling drugs or are sheltering money they ought to be paying taxes on."

Where to start? For one, while the Cayman Islands have been implicated in drug dealing-related money laundering (check out this 1988 congressional hearing featuring a young-looking John Kerry), it is not exactly ground zero for narcotics. Even if it were, it seems to be a stretch to discuss it in the same breath as a conversation about tax shelters. Second, Bain Capital is hardly the only company to use the Cayman Islands to avoid higher tax rates. And even though it did do that, when Romney took out his earnings from those funds, he paid them at the 15 percent rate that he would have had they been U.S.-based. Finally, there is nothing illegal about a company using the Cayman Islands as a tax shelter. It is called a "loophole" for a reason -- because it remains permissible under law.

Harpootlian is a throwback, the type of politician who pushes the envelop in subtle, clever manners. And certainly he, like other Democrats, sense that the moment is ripe to frame Romney in a way that could affect not just the primary, but the general election as well.

"[N]ow the average South Carolinian makes $30,000 a year," he concluded. "Mitt Romney said he made an inconsequential amount giving speeches: $400,000. That's not resonating with those folks."

Comments

[getoffmedz]

06:11 PM on 01/21/2012

The clown goes with "sheltering money."

LOL

[dbrett480]

03:56 PM on 01/21/2012

These revelations will do terrible damage to Romney in the general election.

[SueEll]

01:20 PM on 01/21/2012

Bain Capital has over $130 million in Cayman Island off-shore accounts. That money is not here in American banks making money for OUR country--it is shelved over there. And, of course, they're not paying their taxes on it. Tax evasion is illegal for the rest of us, it should be for the uber rich as well.

[Kerry keane]

02:48 PM on 01/21/2012

First of all it is a Fund (s) - which means a lot of the money is likely to be from Foreign Investors (no tax benefit to the US) ...

Secondly, when the monies get invested in the US ALL taxes/disclosures etc... apply - and if you're an American those were in full effect from the Jump -

i.e. there is no tax evasion, just unknowledgeable Liberals ....

[Fogcatcher]

12:44 PM on 01/21/2012

This is the same guy that slammed Republicans for having a debate on MLK day... When pointing out that the Democrats did the same thing he stammered all over the place....

[media sux]

01:17 PM on 01/21/2012

funny how the truth effects thses phonies...they say something and expect people will just believe them with no question.

Well guess what dems, your words have become highly questionable, along with your failures for policies....say buh bye!

[tax evader]

12:21 PM on 01/21/2012

Money in the Caymans, huh. This is why, in my opinion, Romney needs to stop saying the President needs to stop his "politics of envy." I and I'm sure others do not envy your wealth. What pisses people off is how you are cheating to attain your wealth. Even worse, you want to change the tax law which will benefit you more than it will the average citizen because I'm pretty sure you consider yourself a corporation. My feelings are the same for any rich democrat that is dodging taxes.

[Meggie]

11:52 AM on 01/21/2012

Reasonable. The place I do my banking also has other depositors like me. We work 40 hrs/week. We have mortgage loans on our homes that Mitt would apparently consider teardowns, we deposit

[Progressive Thinker]

11:45 AM on 01/21/2012

What I find completely indefensible about rich boy Romney is the following: Since there are many plcaes to invest your money in America, is he so untalented, that he is forced to invest in the Caymans? If someone as rich Romney can't make money by only investing in America, he will be useless as a President. Besides, his companies have no real addresses in the Caymans, but are post office boxes.

Romney is a fraud.

[Fogcatcher]

12:14 PM on 01/21/2012

And yet you defend Democrats for doing the exact same thing!!

[Progressive Thinker]

12:53 PM on 01/21/2012

I'd prefer that nobody does.

[Kerry keane]

12:27 PM on 01/21/2012

What are you babbling about ? You do know Cayman accts can fund investments in US Companies, right ?

Romney invested in 100 Companies all domestic ......

[Progressive Thinker]

12:53 PM on 01/21/2012

Why does someone need to invest in Cayman? That's my question.

[jeniferdaniels]

11:38 AM on 01/21/2012

i see someone has read the Frank Luntz white papers

[frank day]

11:35 AM on 01/21/2012

Even Mitt's Dad, a close confidant of Nixon, was honest enough to release his tax returns.

[Meggie]

11:53 AM on 01/21/2012

Probably didn't have to scrub them first.

[frank day]

11:56 AM on 01/21/2012

How can you run for 5 years and not realize this would be an issue???

[Ted229]

11:33 AM on 01/21/2012

Lean froward with the smears.

[cjfrog]

11:19 AM on 01/21/2012

Mitt needs to release his tax returns like his daddy did when he ran for president!!

[Fogcatcher]

12:14 PM on 01/21/2012

And he will in April....

[sarabono]

11:14 AM on 01/21/2012

Every Investment Firm that desires Foreign Investors has accounts in the Caymans. Since 9-11, every transaction in and out of those accounts is monitored by the Feds.

For Americans, any transaction of $10,000 or more is reported to the Feds, whether Domestic or Foreign, and is monitored for the payment of taxes due. It is literally not possible for Americans to "hide" money in the Caymans and not pay US Income Taxes.

The advantage of the Caymans is that it is much easier for Americans to invest overseas and for Foreigners to invest in America.

This guy Harpootlian is nuts and doesn't have any idea what he is talking about. He is just a dumb wind bag.

[Kerry keane]

11:21 AM on 01/21/2012

Spot on - I've been saying the same down the thread .... These folks seriously need to read up on tax law, finance and the Patriot Act

[Mr MOTO]

11:30 AM on 01/21/2012

H/T and F&F!

[DBellpe]

11:06 AM on 01/21/2012

The Mormon Church REQUIRES it's members to give 10% of their pre-tax income to them. I wonder if Romney has been doing so?

[Kerry keane]

12:31 PM on 01/21/2012

FYI - That one of the real reasons Romney is holding back on his tax returns - He donates at least 10% to his Church and he does not want his religion hyped until he gets through the "bible belt" States

[bigmaddy]

10:58 AM on 01/21/2012

The question should be why hide your money in the Cayman Islands when you could be using all that money to put Americans back to work?

[camelias and sweet tea]

11:39 AM on 01/21/2012

Because his was NEVER about putting Americans BACK to work..He was just in it for the $$$$$ it never bothered him that many lost their jobs, while he got richer

[sarabono]

12:47 PM on 01/21/2012

Pure Bull Crap. You put money to work to make a profit. You don't put money to work to create a job for someone else.

[Fogcatcher]

12:16 PM on 01/21/2012

He will put Americans back to work when he's President.... Unlike the clown that holds the office today....

[bigmaddy]

01:43 PM on 01/21/2012

Ya, like he did at Bain Capital, the only jobs Romney knows how to create is in China. He has already told you that he wants to give himself and others like him more tax cuts, but wants to raise your taxes to pay for his tax cuts. Bush tax cuts and the two wars has cost this country trillions and under Bush we was heading into a depression. The republicans want to use Bush's playbook which never created jobs. Just a reminder Bush was losing 800,000 jobs a month by the time he left office. It's funny how those one the right forget that.

[Scurvydog74]

10:57 AM on 01/21/2012

"It is called a "loophole" for a reason -- because it remains permissible under law.". Yes, it is permissible by law. One of many tax laws bought and paid for by the 1% for the 1%. Just like "the 15 percent (tax rate) that he would have (paid) had they been U.S. based."

[sarabono]

12:50 PM on 01/21/2012

Another person that doesn't understand the tax rates or investment goals. Seems like many on this thread are financial knowledge midgets.