Owner of Liberal Website That Attacked Romney’s Cayman Island ‘Schemes’, Located in The Cayman Islands
By Rusty Weiss | August 23, 2012
The idea was to expose Mitt Romney’s alleged tax-dodging schemes with offshore accounts in the Cayman Islands. Problem being, the parent corporation known as the Gawker Media Group has a little secret of their own.
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.
Financial journalist, Felix Salmon reported:
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 little tidbit of information; something regarding obscene profits, untaxed revenue, and side-stepping the IRS…
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.
This is weapons-grade hypocrisy…
Cross-Posted at the Mental Recession
This entry was posted on August 23, 2012 by Various Writers. It was filed under 2012 Election, America's Freedoms, Class Warfare, Cloward and Piven Strategy, Corruption in Government, Deficit, Diplomacy, Education, Election 2012, Elections Politics, Electorate, Government, Liberal Scare Tactics, Liberals Big Spending and Taxes, Media Corruption, National Debt, New Media News, Politics, POTUS Deception, POTUS Elibility Issue, Progressives pushing for Marxism/Socialism, Radical Liberal Progressive Left, Rejecting Political Correctess, Stock Market, Banks & Financial Institutions, TEA Taxed Enough Already, The Economy, Unemployment and was tagged with 'schemes', Business, Cayman Island, Election 2012, embrace same policies, Gawker Media, Gawker's little secret, government, hypocrisy, Mitt Romney, offshore funds, politics, right-wing religious Mormon.