Rachel Maddow: Romney Has ‘Issues Of Patriotism’ Due To Offshore Accounts
Now pay attention carefully. Maddow went after John Mica about Mitt Romney’s offshore accounts:
Rachel Maddow grilled Florida Congressman John Mica about whether Mitt Romney’s personal finances and work at Bain Capital were “unpatriotic” on Tuesday night.
and this one especially
Before the polls closed in the Florida primary, Maddow put Romney supporter Mica in the hot seat about another controversial aspect of Romney’s finances: his offshore accounts. She asked if he thought that the candidate’s holdings in “notorious tax havens” raised “issues of patriotism.”
Now let’s note that Maddow is specific- having offshore accounts is “unpatriotic.” It’s in the title.
OK, now who else has had offshore accounts?
1. John Kerry
Democrats were pushing for tax reform in 1984, and Lieutenant Governor John F. Kerry, candidate for US Senate, had some ideas.
“You need a major overhaul of the tax structure,” Kerry told a panel of reporters on a May 6 broadcast of WBZ-TV (Channel 4). “You need to close crazy loopholes that are non-productive.”
Though he did not share it at the time, Kerry had recently learned a costly lesson about loopholes in the tax code.
Weeks before that interview, Kerry, by his own account now, had jettisoned an investment of between $25,000 and $30,000 in an exotic tax shelter after his accountant questioned its legitimacy. In an interview with the Globe, Kerry acknowledged that fear of political embarrassment was a factor in his decision to swallow the loss.
Until now, Kerry has never disclosed details of this tax shelter, which utilized offshore companies registered in the Cayman Islands and a “straddle” scheme of forward contracts to buy and sell commodities, apparently worth up to $238,527.
Apple (AAPL) has accumulated a whopping $54 billion of its $82 billion offshore. More startling, the company’s foreign coffers are increasing three times faster than its U.S. cash, and the trend is accelerating rather than plateauing. While nowhere near starving for capital, Apple’s growth potential is more constrained here than offshore simply because capital production is more efficient overseas. Apple’s wiser using pre-U.S. tax foreign money to make an investment than using its American cash. For example, it’s far easier for Apple to swallow ARM Holdings (ARMH) than Broadcom (BRCM) although both have similar market capitalizations.
Microsoft (MSFT) is even more lopsided in its cash position: $51 billion of its $57 billion in cash resides frustratingly offshore. In its 10K, the company explains its options to complete significant acquisitions or share repurchases: costly tax repatriations, debt or equity offerings. So far, Microsoft has not touched its foreign cash, opting to borrow $11 billion to fund its discretionary needs. The $51 billion sits tantalizing out of reach without incurring additional taxes. Microsoft may find itself struggling to increase its dividend without either borrowing money or accessing this offshore capital.
Reportedly, when President Obama asked John Chambers how to jump start the economy, Cisco’s CEO suggested a tax repatriation holiday on overseas profits.
Indeed, for Cisco (CSCO), overseas cash is a big deal. Cisco holds a greater share of its money overseas than either Apple or Microsoft: $40.6 billion of its $44.6 billion cash.
Cisco has been quickly accumulating foreign capital: Since 2005, off-shore cash has risen almost four fold. Cisco’s approach to its foreign largesse: Hands off. The company meets its financial needs by borrowing money. In 2005, Cisco had no debt. Since, debt has increased to $16 billion. Cisco is a multibillionaire abroad, but here at home, it’s hungry for capital.
According to Maddow, John Kerry and these corporations are “unpatriotic.”
Not content to limit how big a fool she is, Maddow goes on to pound Romney for his taxes
Romney’s career and wealth, of course, have both been hot button issues in the campaign. The candidate released his 2010 tax return after much criticism about his reluctance to do so. The return revealed that he earned $21.7 million in 2010, and paid a lower tax rate than someone who earns $50,000 a year.
John Kerry paid a lower rate then Romney the year he ran for President.
What’s ever funnier is watching the creatures over at HuffPo twisting themselves in knots trying to assert that it’s different when these things are done by someone other than a Republican.
“we are talking about romney here. Kerry is old news and that was up to you to yell if you were opposed to him. Did you?”
“Well, John Kerry didn’t become president and neither should Mitt.
“Uh…is John Kerry running for president? No? Go play outside.”
If it wasn’t wrong for Kerry, it is not wrong for Romney either.
This really is hysterical. Once again it proves my axiom that liberals have zero long term memory. And they’re not very much for principle either.