Romney’s Former Company Under Investigation For Tax Evasion

[cal04]

Last edited Sun Sep 2, 2012, 11:59 AM - Edit history (1)

http://thinkprogress.org/politics/2012/09/01/787661/romneys-former-company-under-investigation-for-tax-evasion/

Bain Capital, the private equity firm founded by presidential candidate Mitt Romney, is under investigation for questionable tax practices, according to the New York Times.
http://www.nytimes.com/2012/09/02/business/inquiry-on-tax-strategy-adds-to-scrutiny-of-finance-firms.html?hp

Since July, New York Attorney General Eric Schneiderman has been issuing subpoenas to private equity firms including Bain, which he believes intentionally changed management fees into capital gains as a way of hanging onto millions of dollars that would have otherwise been taxed at a higher rate. Bain alone is estimated to have saved “more than $200 million in federal income taxes and more than $20 million in Medicare taxes.” It is unclear whether the tax strategy was used while Romney was at the helm of the company, but the Times reports that Romney is still making money on funds that are using the method in question. A lawyer who handles Romney’s money says he “can confirm that neither he nor the trust has ever done this, whether before or after he retired from Bain Capital.” Still, little is known about Romney’s finances, except that he makes a windfall on capital gains each year, since he has refused to release his tax returns.

http://thinkprogress.org/economy/2012/08/16/700611/romney-seve-tax-return-questions/

New York AG investigating Bain Capital, other firms for tax evasion
http://www.rawstory.com/rs/2012/09/02/new-york-ag-investigating-bain-capital-other-firms-for-tax-evasion/

New York Attorney General Eric Schneiderman has launched an investigation into whether some large private equity firms—among them Bain Capital, the firm founded by Republican presidential candidate Mitt Romney—took advantage of a tax loophole to avoid paying hundreds of millions of dollars in taxes.

According to the New York Times, who first reported the story, executives with knowledge of the investigation said Schneiderman had subpoenaed around a dozen firms in the past few weeks seeking any documents that could shed light on their tax-writing procedures. At issue is whether those firms used a shady, legally-dubious practice of labeling certain fees as investments, thus allowing them to be taxed at a far lower rate to produce huge savings over the long run.

Last month, Gawker obtained and posted nearly one thousand pages of Bain’s finances, revealing that the firm utilized the controversial tax strategy to classify at least $1 billion in fees as capital gains-producing investments. While the fees could have been taxed at up to a 35 percent rate, as investments they were subject to a more modest 15 percent rate, saving Bain around $200 million.

[Initech]

1. What the hell is he hiding?

[russspeakeasy]

2. Do not let Eric Holder get this info. You will never see it again.

[Wellstone ruled]

3. This is why we need

to get Obama reelected. As of January 1,2013,there will be a new AG,Holder will be back at Coving-Burling. Watch and see who fills this spot,will be a fire brand person. There will be a major house cleaning of people around Obama,because the people recommended the first time did not serve our President well at all. The GOP knows this and they are scared shitless.

The moratorium for Wall Street Banksters has since lapsed,Mr. Holder refused to act,because all of the firms are represented by Coving-Burling law firm. This is one of the main money reasons for all the contributions to Willard. They already see the hand writing on the wall,they screwed the President over and know they know he will return the favor.

It's just Politics,baby.

[Roland99]

4. Intriguing but not holding my breath

[RagAss]

5. Nothing to see here......This is what fascists do.