Saturday, April 14, 2012

Romney files for an extension: WTF?

Does Mitt Romney even realize that he's running for President? On Friday, his campaign announced that Mittens would be filing an extension for his 2011 taxes. There's nothing wrong with filing an extension, but for a guy who has be dogged by tax questions for his massive income, why prolong the issue?

George Romney released 12 years of returns in his 1968 Presidential run

Romney's father, the late George Romney was one of the first major Presidential candidates to voluntarily release his income tax returns back in the 1968 Republican Presidential campaign. He famously released 12 years of tax returns and started a modern tradition of the Presidential candidate tax return release.

Mitt Romney released 2 years of returns in January

Romney's GOP opponents made an issue out of Romney's reluctance to release his tax returns back in January. After pressure from his opponents and some embarrassing and awkward debate answers on the release of tax returns, Romney relented and released his tax returns from the 2010 and 2009 tax years.

Romney's release was enlightening, not from the fact that he makes gobs and gobs of money, but that his effective tax rate was in the 14 to 15 percent range. It also raised questions, because unlike his dad's release of 12 years of tax returns, Mittens only released 2 years.

It also showed overseas investments with accounts in Switzerland and the Cayman Islands. While absolutely legal, such accounts fed the narrative that Romney can't relate to the average American voter who probably couldn't point to the Cayman Islands on a map, but knows that the Cayman Islands are where "rich people" hide their money.

Romney's filing of a tax extension furthers Romney's problems.

You would think that for a seasoned Presidential candidate like Romney, he would have known that April 15th was tax day and that he should have his return spit shined for the media and the American voter. Buzz will be contacting the Romney campaign and volunteering the services of his UNIVAC 3000 for Romney's tax preparation.

Two problems arise out of the extension filing.

First of all, the filing of an extension kicks the can down the road and closer to the general election. If Romney had filed a full return on time, his tax return would be news now and would share the spotlight with President Barack Obama's tax return.

So when Romney does file his tax return, it's another news story closer to the election when more people are paying attention. He also doesn't benefit from the cover of the President releasing his return at the same time.

Secondly, it doesn't help the Romney narrative that he is this consummate businessman who can be the country's CEO. It's not like the Obama regime changed the tax date to surprise and embarrass Romney. For a guy who prides himself on dotting the Is and crossing the Ts, not filing his taxes on time sort flies in the face of that narrative.

1 comment:

CFO said...

"As a citizen, you have an obligation to the country's tax system, but you also have an obligation to yourself to know your rights under the law and possible tax deductions -- and to claim every one of them."
Donald Alexander
Former IRS Commissioner