In other words, Romney didn’t build that, at least not without taxpayer backing.
Mitt Romney Reaped Huge Tax Benefits Based On 'Active' Role At Bain Capital
For tax purposes, he claims an active status; for political purposes, he claims to have zero to do with the investments.
The distinction is valuable, for the IRS treats passive and active income and losses differently. If a passive investment loses money, the taxpayer can only write off that loss if passive gains have also been made. But active losses can be written off at a 35 percent rate and deducted from the taxpayers ordinary income. In other words, a taxpayer wants active losses, not passive losses. So by describing many of his investments as active, Romney saves himself millions of dollars in taxes.
With those active investments, he is also securing a tax break few Americans enjoy: When he wins, hes paying a 15 percent rate on the gain. When he loses, hes writing it off at 35 percent, meaning that tax policy is subsidizing Romneys risk in his Bain investments.
http://www.huffingtonpost.com/2012/08/26/romney-bain-taxes_n_1828816.html?utm_hp_ref=politics