however, the concept of the cayman islands, the idea of the day man islands is, it must be for rich peopleoiding paying taxes but it is lawful and anyone can use it. so it is a political issue not a legal issue. it could be an issue with respect to integrity, because people should not have denied it. >>shepard: what is illegal if you found money that did not go through the tax ross and you stored it hoping the i.r.s. wouldn't find out. that is illegal but they do not suggest that. >>judge napolitano: i suggest that he probably operates a limited liability corporations and they probably have their bank accounts there and they receive income there and they pay their bills from there. when that is the case, when all the activity takes place in the cayman islands you don't pay american federal tax and that is lawful. if you take that money from the cayman islands and uses it here at that time he h to confront the tax consequences. it is not an unusual thing. they are making it more of a deal than it is because his opponents are trying on force him to reveal he is uber irish to make him to appe

romney has invested part of his millions in the cayman islands. this money appears to be various retirement investments that aren't controlled by mr. romney himself. while the romney campaign admits he does, in fact, have millions of dollars stashed in the cayman islands, the campaign says, quote, aids say he never used the location as a tax haven. see they are parked in the cayman islands not to avoid paying taxes or anything, the thing you need to know about mitt romney's millions is they like to have a nice view. they like warm weather, the millions text him constantly about their respiratory problems, please, mitt, can we go swim with the sting rays, really, is it the view? come on. well, we are talking about front page headlines though, there was also this front page in florida's "tampa bay times" today. "miami factory: one side of bain." hundreds lost their jobs, mitt romney's company made $242 million. florida's the next stop in the republican presidential race. how's that for a welcome to town mitt romney greeting. the whole interacting wi

if you are vetting this guy, isn't it a red flag, cayman islands offshore? >> and as a general rule, people do not put money in the cayman islands as an effort toward paying the maximum tax. that is the general assumption and a valid one. if something is going on in the cayman islands, people deliberately do it. why not give the jobs to americans who work in banks, the tellers who would handle it, rather than outsource them? i think the thing about romney you have to say -- this is not a campaign fault. this is a fault with the candidate. there is no question that the people in the campaign went to him -- because you do, you would check every candidate to see if there is anything else. this will be a credential. what about your taxes? he has avoided this. he sounds marble mouthed, unsure, absolutely unconvincing, and the question about the man's genuineness is absolutely compounded by his mishandling of this issue. >> such an easy one, charles. this seems to me. >> it seems that, one, he should have had an answer six years ago. and equally so, on the bain ca

>> didn't they also do the cayman islands story? >> yeah. >> they'll be breaking two tough stories against each candidate. there is some -- that may have helped the sense of balance. they're hitting both within a couple days of each other. >> she gave an interview to "esquire" 2010 not long ago where she spilled the beans. is there anything new in this interview? >> that's what i'm wondering too. >>> tomorrow on "morning joe" -- >> yeah? >> stephen colbert will be here. >> south carolina native. >> that's an old picture. >> seriously, you went to college with stephen colbert, and i think you were in this picture before we whited it out. >> all right. >> tie die t-shirt. >>> that'll be fun, and in a few minutes, we'll bring in david gregory. chuck todd and joe klein. >>> plus an exclusive look at politico's top stories of the morning, but first, let's go to bill karins with a check on the forecast. >> good morning, mika. i'm jealous, charleston's a beautiful place any time of year. much of the state has a chance of rain showers. does

as many as 20 offshore investments, not just the cayman islands, hong kong, ireland.e that as the romney campaign says, this does not necessarily because, because he has the investments, does mean he doesn't pay u.s. taxes. there are all sorts of tax benefits to investing offshore, ranging from limiting the deductions you have to make to paying medicare taxes, to deferring state taxes that does accrue to the romney's because of the investments and we won't know the full extent of that until we see the tax returns. >> their investments are handled in a blind trust. why would that matter? >> at some point several years ago, the romney's did put their investments in blind trust. they don't know what's bought and sold. we don't know which of the these investments are still being held by the romney's because they could have been sold by the blind trust without it showing up on his financial disclosure form. i think the even bigger issue beyond the offshore investments is that 15% tax rate that romney, himself, admitted to. that does show how he has a wealthy individual has

advisers today said there's no benefit to him putting that money in the cayman islands well then you asked him why do it why do exactly sam seeder about to william wilkins thanks so much for being just a pleasure to push you to understand what exactly mitt romney romney is a pain for with his tax dodging we have to the story of joe republican we'll get into that right after this. oh here it is years ago john gray wrote a piece called joe republic and here's a quick summary of it joe gets up at six o'clock in the morning fills his coffee pot with water the water is clean and fresh because some tree hugging liberal thought for water quality standards he takes his daily medication it's safe to take because some stupid conny liberal thought to ensure their safety and that they worked as advertised his medication is paid for by his employer's medical plan because a liberal union workers fought for he prepares morning breakfast bacon and eggs safety eat because some liberal fought for laws to regulate the meat packing industry joe dresses walks outside take a deep breath airy breezes clean

the cayman islands are also close to florida, if i have my geography right. but when we talk about the economic populist message, it is mind boggling that the guy with the $500,000 revolving tiffany's account who goes on vacations to the greek islands is somehow the representative of the great purltarian. >> i feel like that could happen at any point. >> we're holding out. >> i think it's very hard for a lot of middle americans to relate to romney. when he comes out and says, i have a 15% effective tax rate, that doesn't resonate with most people. it will be interesting to see how he overcomes that. >> this is somebody who says, i didn't make a lot of speaking fees when he made almost $400,000. >> and i think the income from those speaking fees alone might have taken him to the 1%, which is ironic. >> certainly in a lot of parts of the country. >> we'll be talking more about taxes, money, and romney's millions after the the break. the tax man cometh. we'll dig into that report that mitt romney parked money in the cayman islands and what it means for the gop p

have you been to the cayman islands by the way. >> i have been to the cayman islands. >> you have a lots always fun to look at other people's domiciles for their money. >> bill: why would anyone have $8 millioned in the cayman islands. >> that number by the way is a very conservative estimate. >> bill: might have more. >> absolutely. numbers rise as high as triple digits. in terms. >> why? why not invest your money in the america not cayman's. hurricane and the money is gone. >> i can't understand why the rest of the medias is talking about it. you focused on the issue. why wouldn't he put his money there? the answer is he gets to defer faxes on the money that is in a trust in the cayman islands earning interest as he is invistad over the years. >> so when he -- defer means that he doesn't have to pay taxes until he withdraws that money? >> correct. right. >> bill: takes it back to the u.s.a. or starts to spend money off the account, right? >> yes. >> bill: kind of like an ira then? or kayman auburn hills? >> there you go. cira. >> bill: not doing anything nefarious. >> nothing nefariou

found that millions of dollars of romney's personal wealth is in investment funds, set up in the cayman islandsthe notorious caribbean tax haven, where secrecy is the rule. nothing in romney's financial disclosure statement reveals his connection to the caymans. but we tracked ten of the accounts he lists, set up by his former company, bain capital, and involving as much as $30 million, tracked all to an address in the caymans. a post office box at the central post office. this is the bain capital address right here. post office box 908. such offshore accounts allows u.s. taxpayers to tax loopholes, and keeps secret where the money is invested. as we learned from bain's lawyers. you can't talk about that? >> unfortunately not. >> reporter: nothing at all? >> nothing at all. >> reporter: the romney campaign says the candidate would pay the same taxes if the accounts were not in the caymans. >> and if there's an opportunity to save taxes, we, like in anybody else in this country, will follow that opportunity. >> reporter: but a larger issue involves how bain and others use such offshore accounts

the cayman islands. >> i like the cayman islands things because i think i picked my president and he'slet me go to jacques. >> wait a minute. >> in barack obama's book, i know people are going to like what i'm going to do, but i'm going to do it anyway, he admits he used cocaine. do you remember anyone grilling him about cocaine use, who was your dealer works did you get it from, where did you get it from. in this environment, attacking every republican on every wart from 15, 20 years ago, why not ask him about his relationship with bill ayers and his drug use s that fair? >> on the one hand you don't want to talk about somebody's marriages years ago but you want to explore -- >> no, i want the media to be fair. >> i president of the united states, a, is not running against the media, number one. he's running against whoever the republicans will eventually nominate. >> why didn't ann curry and him about his coke use. >> why not when the debate took place this week when they had a debate on martin luther king's birthday, an day a country examines its values and where it is, why didn't a

so investments in the cayman islands? everybody knows what the cayman islands is about.es fun of people that are unemployed. he thinks it's funny to say that he's been unemployed or that he has a pink slip. i think he is completely insensitive and to me, as soon as people understand that, and i do believe more and more are getting to understand that every day, we're going to watch the president soar. >> congresswoman, not only his own personal, but let's look at his tax plan which really gives to the rich and hurts the poor. his plan, this is willard mitt romney's tax plan. $146,000 average tax cut for millionaires. 60% tax increase for households with income below $20,000. so his plan is absolutely for the top 1% as those that confronted him today in south carolina was raising to him. >> when we are going to elect a president, we want to elect somebody that is going to fight for the middle class. that is going to fight for working families. how could mitt romney do that when he has no clue how the middle class lives. if he did understand that, he certainly wouldn't make

and the cayman islands don't report the income that's made to the u.s. reporter: nothing in romney's financial disclosure forms, required for all presidential candidates, revealed his connections to the caymans. but listed under his investments are at least 12 pratt funds, with potentially as much as $30 million, that we were able to track back to the island. for example, the fund listed in tiny print as bain capital fund viii, officially registered in the cayman's by romney's former company, bain capital. in fact, official documents show bain capital has set up some 138 secretive offshore funds in the caymans that are nothing more than a post office box. there are rows and rows of post office boxes here at the central postal station in grand cayman, for all of the companies who come from overseas to take advantage of the tax haven here. this is the one used by bain. this is their post office box, 908. other than the box number, everything else about the bain accounts is kept secret from outsiders. can you confirm there are accounts here? >> no. >> report

plus there's word mitt romney has lots of money in the cayman islands. what that means and the campaign's response. stay tuned, bottom of the hour. top of the news on "fox report." perhaps you've seen my picture... on chef boyardee products. i make real italian ravioli. small tender macaroni pies, filled with hearty italian seasoned meat, smothered in vine-ripened tomato sauce. and absolutely no preservatives. so delicious. bon appetito. chef boyardee's legacy of quality ingredients is still in every bowl. real great food. from a real great chef. day my journey continues across the golden state, where everyone has been unbelievably nice. mornin'. i guess i'm helping them save hundreds on car insurance. it probably also doesn't hurt that i'm a world-famous advertising icon. cheers! i mean, who wouldn't want a piece of that? geico. ah... fifteen minutes could save you fifteen percent oh dear... or more on car insurance. if you took the top down on a crossover? if there were buttons for this? wouldn't it be cool if your car could handle the kids. ♪ ...and t

and he did mention in the piece that it's taxed the same in the cayman islands as it would be anywhere still, that's a lot of loot. >> it is a lot of money. nice problem to have, i guess. >>> well, president obama is hearing it from all sides after rejecting plans for an extensive oil pipeline through the heart of the united states. it would run from canada through six states all the way to oil refineries in texas. but mr. obama has blocked it, saying there's not enough time to evaluate the project ahead of a republican-enforced deadline. while the president faces criticism for killing jobs, environmentalists praised the decision. >>> and now to that cruise ship disaster off the italian coast. the ship's captain is now being quoted as saying that he tripped and fell into a lifeboat as the disaster was unfolding and that he never intentionally abandoned ship. he's still under house arrest during all this. prosecutors are planning to challenge that, though, saying the captain has admitted to being reckless with the ship and that he is a flight risk. meanwhile, italian cave experts are ex

taxes on his investments in the cayman islands, but i think the whole bain capital issue, the fact that he is a wealthy person and has been successful in the business world in the republican primary at end of the day it's not going to make that much difference. they all want to be mitt romney. >> if romney manages to figure out how to lose south carolina and he didn't win iowa, now he's one for three. >> i don't think the iowa thing will make that much difference. it was a toss-up anyway it was so close, but look at what's next, derek. it's florida. the last day of the iowa caucuses mitt romney made an $800,000 statewide tv buy. he is pouring millions of dollars into florida. all the polling shows romney will run away with florida. i think florida is much more pragmatic than is south carolina and it's his to lose. >> if he wins that one, it's practically over. >> i think if mitt romney pulls out a win in south carolina, goes to florida, wins florida, go into super tuesday. where do you stop him? >> bob, thank you. >> okay, great. >>> folks in d.c. and montgomery county, maryland, you're

this cayman islands thing does not look good. i saw a statement from the romney people where they say this was not about taxes. he didn't get a tax benefit out of it, but he just also increases the pressure on him to put out his tax run before the primary on saturday. i don't know what's in there, but the pressure has been building. i think you can be sure the tax return will be an sure that will come up in tonight's debate. >> even chris christie says sooner rather than later, but then again, mitt romney has never released a tax return, e.j. he didn't do it when he was running for senate against ted kennedy. nevertheless, do you think his campaign really thought they would get through this primary season and he wouldn't release his tax returns? >> my hunch is they thought this could, but they had done it in the past, just for the reason you said. i think that the surfacing the the bain capital issue and that documentary, whatever may be true or falls in it, just put the whole issue of romney's money on the table. the more that i

. >> you have to live in a world of swiss bank accounts and cayman island accounts and automatic $20 million a year income with no work to have some fantasy this far from reality. >> romney later shot back saying gingrich himself has supported the concept. >> i recognize that it's tempting to come to an audience like this and pander to the audience. i think that's unbecoming of a presidential candidate. >> the two will have another chance to go at it tonight when they meet for the last gop debate before tuesday's primary. on a visit to the space coast in florida, newt gingrich promised to establish a permanent base on the moon by 2020. he also said he favored the idea of expanding mars exploration. betty sh. >> interesting. terrell brown in washington for us. thank you. >>> as we reported earlier, the president was in arizona and he got a rather confrontational greeting from governor jan brewer. brewer and the president could be seen in an intense finger pointing conversation. now, the issue is arizona's controversial anti-immigration law which the president opposes. brewer says the

the cayman islands issue in the swiss issue grabbed headlines because there were problems with swiss ccounts and offshore accounts in the caymans. but there is nothing to indicate that there has been innovation or even aggressive tax avoidance. for example, that came in corporations related to his holdings in bain capital, those are very common tax framing devices used by universities and pension funds. they basically allowed them to -- these tax-exempt entities, to invest in these active businesses. they are circumventing a u.s. tax rule that is really an artifact of a lot that really is not that central. in fact, this rule, if mr. romney was not allowed to do this type of tax planning, congress would probably change the rules anyway. there is no smoking gun here. just because there is a cayman islands account. host: but when you see the ads of offshore accounts, swiss accounts, cayman island accounts, will this come back to hurt him? guest: i do not think so. there are a lot of problems in other contexts and i have done research on that. but the more that you look at this, you will

> you made an issue of this this week when you said that he lives in a world of swiss bank and cayman island bank accounts. i didn't say that. you did. >> i did. i'm perfectly happy to say that on some tv show, but you have a chance -- >> you make a serious accusation against governor romney like that, you need to explain that. >> you want to try again. i mean -- >> wouldn't it be nice if people didn't make accusations that they weren't willing to defend here. >> a really interesting exchange. it contributes to the idea that a lot of people felt newt gingrich was flat tonight. >> you know, he was the one who raised the issue of the cayman islands, the swiss bank account. he made a serious allegation against romney. i thought it would be a great opportunity to clarify, explain what he meant about it. he didn't want to talk about it. when i finally pressed him, he responded. >> there have been a number of allegations on the campaign trail that showed up. ari fliethser, there was a campaign commercial that mitt romney is running in which he said that newt gingrich said spanish is the language o