ABC News: Romney Party Yacht bears Cayman Islands flag

If Mittens registered his ship in the US after he purchased it, he would have to pay sales tax and annual registration fees.

There was also a luxury tax on yachts not long ago in the US, too.

The flag may be  a Bermuda flag because of the red background.

Bermuda is another tax haven or the one per centers.

However, there is a Cayman island flag with red background: see http://www.united-states-flag.com/red-cayman-islands-5x8-nylon-flag.html

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