ABC News Produces Empty and Biased Story on Mitt Romney and Tax Havens

Exactly 10 days ago, I predicted that the press would attack Mitt Romney for using tax havens. In that post, I wrote that, “…based on the questions, it appears that the establishment media wants to hit Romney for utilizing tax havens… As far as I can tell, none of these reporters have come out with a story. …But I think it’s just a matter of time.”

Sure enough, like the swallows returning to Capistrano, it’s happened. Two hacks at ABC News, Brian Ross and Megan Chuchmach, revealed (brace yourself for a real scoop) that Mitt Romney is a rich guy and some of his investments are based in funds domiciled in the Cayman Islands (gasp!).

Wow, what a revelation! This must be Pulitzer Prize material. Pray tell, what wrongdoing did the story uncover? Well, let’s excerpt the key passages from the article.

Mitt Romney has millions of dollars of his personal wealth in investment funds set up in the Cayman Islands, a notorious Caribbean tax haven. A spokesperson for the Romney campaign says Romney follows all tax laws and he would pay the same in taxes regardless of where the funds are based.  …Romney has as much as $8 million invested in at least 12 funds listed on a Cayman Islands registry. Another investment, which Romney reports as being worth between $5 million and $25 million, shows up on securities records as having been domiciled in the Caymans.  …Romney campaign officials and those at Bain Capital tell ABC News that the purpose of setting up those accounts in the Cayman Islands is to help attract money from foreign investors, and that the accounts provide no tax advantage to American investors like Romney. Romney, the campaign said, has paid all U.S. taxes on income derived from those investments. …Bain officials called the decision to locate some funds offshore routine, and a benefit only to foreign investors who do not want to be subjected to U.S. taxes.

You’re probably thinking you missed something, because there’s nothing to the story. But that’s because the reporters don’t have anything. And if you think I excerpted unfairly, feel free to read the whole article.

The only thing you’ll discover is that Ross and Chuchmach are biased hacks. Because not only did they write a story about nothing, they also quoted two left-wingers, Jack Blum and Rebecca Wilson, and failed to give the other side even an inch of column space.

Blum is a former John Kerry staffer who is most famous for making unsubstantiated claims (which he later admitted were fabricated) that tax havens resulted in $100 billion of lost revenue to the Treasury each year.

And Rebecca Wilson works for Citizens for Tax Justice, a union-funded group so radical that even congressional Democrats usually are reluctant to work with them.

But what about the other side of the story?

1. Did the article quote me, since I’ve been working on these issues for more than a decade? No.
2. Did the article quote anybody from the Center for Freedom and Prosperity, the organization most active in the fight to defend low-tax jurisdictions? No.
3. Did the article quote Richard Rahn, the Cato Institute Fellow who was a Board Member of the Cayman Islands Monetary Authority? No.
4. Did the article quote any of the academic scholars who have written about so-called tax havens, such as Jim Hines of the University of Michigan or Andrew Morriss of the University of Alabama? No.
5. Did the article quote Bob Bauman, the former Congressman and offshore expert who serves as Legal Counsel of the Sovereign Society? No.

Fair and competent journalists would have done those things, but not the dynamic duo from ABC News.

Instead, they quote two hard-core lefts. And in a gross display of editorializing, they also referred to the Cayman Islands as a “notorious tax haven.”

Yet what is “notorious” about being a prosperous multiracial society with living standards considerably above American levels?

Moreover, Cayman has a tax treaty with the United States and an overwhelming share of the investment in the jurisdiction is completely legal institutional money – just like the Romney investment funds.

But I guess a place like the Cayman Islands must be bad, at least to biased people from the press. After all, a place with no income taxes, no capital gains taxes, no payroll taxes, and no death taxes must be condemned.

I’m not a Romney fan, as you can see by reading this post, but I believe in honest and intelligent debate. Too bad ABC doesn’t.