Why Romney Can’t Release His Tax Returns and Win

Mitt Romney: tax returns will cost him the election
Photo credit: Evan Vucci AP

NEWPORT BEACH, CA  (The Nedelman Report)

If Mitt Romney doesn’t release his tax returns before the November election, he’s toast. If Romney does release his tax returns, he’s burnt toast.

Romney clearly expresses himself in all his communications when asked to release his tax returns. Imagine a spoiled, six year old child, accustomed to getting his own way, being told something he really doesn’t want to hear – being called to account for his previous behavior. Romney’s response?

Now, if you will, imagine this child sitting with his fists balled over his ears and shaking his head side to side, eyes squinched tightly shut, his feet stomping out a rapid tattoo, and a long wail of anguish, “Na, na, na, na, na, na, na, na, na……” to drown out the repeated requests for his tax returns by mainstream media, Dems, and even level-headed Repubs (a rarity these days).

This recalcitrant child even has media shills fronting points for him. Charles Krauthammer, in an article in Real Clear Politics, yesterday, made the most inanely, ridiculous point of Romney not supplying his tax returns because this would only encourage Democrats to ask for more tax returns.

My reply to Krauthammer in a comment was, “Of course, in Krauthammer’s marvelous intellectually bankrupt evaluation of the merits of this position, he’s conveniently left out one simple proposition: voters have a right to know about the financial dealings of the man who loudly proclaims his lifelong history of financial dealing qualifies him to be president. Knock, knock, Charles, anyone home?” From what I can tell, Krauthammer’s article – and comments – were later removed from Real Clear Politics.

Romney can’t release his tax returns and be elected. In fact, if he releases his tax returns before the RNC, there will be a groundswell of opposition to his nomination, although he has the delegates to clinch it.

If Romney releases his tax returns listing all the various income streams from the vulture capital deals he did at Bain Capital, the sound companies damaged, the stock and other compensation received, which onshore-offshore accounts they were deposited into, the egregiously huge fees taken at the expense of the company and the workers, and these are matched to the SEC annual 10-K and quarterly 10-Q reporting forms, and the 8K significant action reporting forms, it will be simple matter to connect the dots and track the destruction, avarice, and greed perpetrated on numerous companies and their employees who were effectively trashed for the sake of financial gains of one man, Romney,  and a few selected client’s. Wealth creation was not Romney’s intent; wealth extraction was the sole object of the exercise.

It won’t wash. It simply will not wash.

The SEC reporting for all of Romney-Bain controlled companies should be available at the SEC site. Even without Romney’s tax returns, a great deal of information is reported as it occurs, or should be, in addition to full disclosure required on the quarterly and annual SEC reporting forms. Following is some of the information that is required by the 8-K SEC reporting form.

  • Entry into a Material Definitive Agreement Item
  • Termination of a Material Definitive Agreement Item
  • Completion of Acquisition or Disposition of Assets Item
  • Results of Operations and Financial Condition Item
  • Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant Item
  • Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Item
  • Costs Associated with Exit or Disposal Activities Item
  • Material Impairments
  • Unregistered Sales of Equity Securities Item
  • Material Modification to Rights of Security Holders
  • Amendment to Registrant’s Code of Ethics, or Waiver of a Provision of the Code of Ethics Item
  • Financial Statements and Exhibits

With Romney’s tax returns, one should be able to match his line item entries on his tax returns to these SEC reporting forms – or one should be able to do so if timely and proper reporting was done. That is not a given, though, when dealing with Romney. This is the man who wiped clean state computer hard drives when he left as Governor of Massachusetts. In terms of an ethically, open-handed disclosure of his dealings, Romney is so crooked he has to screw his socks on in the morning.

Romney potentially has another huge problem: an egregious $50-$100 million in a personal IRA account. In one such instance, as reported in  Nicholas Shaxson’s penetrating article, Where the Money Lives, in the August issue of Vanity Fair, one such IRA investment increased not, say three-fold, but 586-fold. Was Romney so blind as not to recognize the stock was undervalued when he put it into his IRA account?  If it can be demonstrated that Romney pursued a pattern of knowingly contributing intentionally undervalued stock from Bain Capital deals to his pension and IRA accounts to avoid taxes, could the IRS reasonably question if this activity constitutes income tax evasion, a felony?

Again, there is a major difference between wealth creation and wealth extraction. I did venture capital deals, too; I know. Romney was in the wealth extraction business for most of his career, and this is what his tax return will clearly demonstrate. How else can one stash $50-$100 million into a lowly, personal IRA account? Connecting the dots from Romney’s tax returns to Bain Capital SEC filings, one should not be surprised to see a  fully-fleshed portrait of Mitt “Dorian Gray” Romney emerge… and he won’t be pretty.


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