Willard Mitt Romney's 2010 tax return shows that there has been a very serious change in foreign assets over the past 10 years, especially removing foreign assets recently.
IRS form 1116 is used to document Foreign Tax Credits (see www.irs.gov/pub/irs-pdf/i1116.pdf ). There are two classes of foreign tax credits:
• Passive Category Income which consists of passive income and specific passive category income.
o Passive income generally includes dividends, interest, royalties, rents, annuities...
o Specific passive categories ..(domestic international sales corp.)...
• General Category Income which is income that is not passive income.... General category can include:
o Wages, salary, and overseas allowances...
o Income earned in the active conduct of a trade or business.
o gains in the sale of inventory or depreciable property used in a trade or business.
o Note that financial services Income is considered specifically as general category income if it is derived by a financial services entity.
• More infrormation on the classes of income are described in the IRS forms cited above.
What does Willard Mitt Romney' s 2010 Federal 1040 show related? Look closely at page 163 (statement 30) and page 166 (statement 33) which are titled " supplement to Form 1116". The categories of Foreign Tax Credit for "Passive Category Income" and "General Category Income" are listed for tax years from 2000 thru 2010 and are summarized in the table below.
Year - Foreign Tax Credit Passive Cat Income General Cat Income Total Foreign
2000 $31,838.00 $0 $31,838.00
2001 $25,771.00 $0 $25,771.00
2002 $28,875.00 $0 $28,875.00
2003 $11,173.00 $0 $11,173.00
2004 $87,550.00 $0 $87,550.00
2005 $333,149.00 $0 $333,149.00
2006 $276,386.00 $0 $276,386.00
2007 $275,488.00 $148,510.00 $423,998.00
2008 $151,015.00 $636,440.00 $787,455.00
2009 $81,461.00 $56,891.00 $138,352.00
2010 $690.00 $690.00
page 163, statement 30 page 166, statement 33
Notice how the total foreign tax credit was rising thru 2008 to a maximum of $787,455.00 in the year that Romney was a vice presidential candidate and then went into a rapid decrease to $690. in 2010.
Now recently John McCain is cited (Mitt Romney's Tax Returns Have Nothing 'Disqualifying,' John McCain Says ) in The Huffington Post | By Sabrina Siddiqui Posted: 07/17/2012 4:39 pm Updated: 07/17/2012 5:07 pm ) as saying -
"Sen. John McCain said on Tuesday he can "personally vouch" there was nothing disqualifying in the 23 years' worth of tax returns that Mitt Romney submitted to his team in 2008, when he was vetted for a vice presidential spot.
"Everything was fine," McCain told reporters on Capitol Hill. "I can personally vouch for the fact that there was nothing in his tax returns that would in any way be disqualifying for him to be a candidate."
There is no information in Romney's 1040 which would 'disqualify' him if we use the meanings of "disqualify" from a Google of the word which gives the following meaning:
1. Pronounce (someone) ineligible for an office or activity because of an offense or infringement: "he was disqualified from driving".
2. Eliminate (someone) from a competition because of an infringement of the rules.
Which leads to exactly what are the qualifications for Vice president of the USA? The vice-president must be qualified to be President. According to the twelfth amendment of the Constitution, "no person constitutionally ineligible to the office of President shall be eligible to that of Vice-President of the United States."
In order to be President, a person must be a natural-born citizen at least 35 years of age and a resident of the United States for at least 14 years.
Thus John McCain could easily make his statement concerning the 23 years of tax returns did not show Willard Mitt Romney was not at least 35 years old in 2008 and he had resided in the USA for the last 14 years.
But the average American might be very concerned that Romney place what is probably large amounts of money to generate these foreign tax credits from foreign sources. If money creates Jobs, then this created foreign jobs!
Sat Aug 25, 2012 at 3:26 PM PT: The New York Times published on August 24th, a more detailed article on this subject. the NYT author took the basic data to several experts. The experts conclusions are very interesting. See: Tax Credits Shed Light on Romney
By JAMES B. STEWART
Published: August 24, 2012