So long as the money got to the Cayman Islands legally, as the result of money earned in foreign countries and not repatriated back into the U.S. as an example, depositing the money in a tax-free account in the Cayman Islands is a pretty smart move. Remember, under the current U.S. tax laws, if Romney were to bring the money back into the U.S. it would be taxed at whatever the appropriate rate might be, probably ordinary income.

That's why American corporations doing business offshore try to avoid bringing money back into the U.S.--to avoid having to pay taxes on it. Typically, they keep foreign earnings outside the country, available for further investments outside the U.S.

The bigger question might be, what would an American citizen do with a large sum of money held in the Cayman Islands? A logical answer might be to make investments outside the U.S. In other words, if the money was earned outside the U.S. why would one bring it back into the U.S., pay a hefty tax on it, only to re-invest it outside the U.S.?

I'm afraid none of the real motivations behind Mitt Romney's wealth held outside the U.S. will be explained by his tax returns. And my guess is that he probably won't explain what his plans are for the use of the money. Even if he had a well-developed investment plan, why should he tell the public? I know I wouldn't.


And by the way, I agree with Bucco. No one has alleged anything illegal about how much money Romney earned, how much he was taxed on the earnings, or even where the money is located. As his record in business clearly shows, he has been an effective business manager for years. It would be skills such as resulted in him creating a personal fortune, effectively turning around the Salt Lake Olympics, and governing the state of Massachusetts, that are exactly the skills needed for a new POTUS to effectively address the fiscal problems facing this country.

I might add...could a thorough examination of Newt Gingrich's ample fortune survive similar scrutiny?