Mitt Romney Taxes Enriched Foreign Governments At U.S. Expense
WASHINGTON -- Mitt Romney sought and received $787,455 in foreign tax credits from the U.S. Treasury to cover his tax payments to other nations in 2008.
While there is no evidence that his actions violated the law, abuse of the foreign tax credit has been a problem for the Internal Revenue Service. The agency has prosecuted a number of international fraud cases in the last few years involving such credits. And the size of Romney's claim in 2008 raises questions about the sources of his foreign income.
"This could definitely be a contributing reason for Romney's unwillingness to disclose prior years' returns," said New York University School of Law professor Daniel Shaviro, a tax expert.
The U.S. government provides tax credits to Americans who also pay taxes abroad, so that foreign income is not taxed twice by different governments. While these credits do not save U.S. residents from paying taxes -- they still have to pay the foreign governments -- they do put a dent in the U.S. Treasury's collections.
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