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Mon Oct 29, 2012, 12:28 AM

Romney Avoids Taxes via Loophole Cutting Mormon Donations

Source: Bloomberg

In 1997, Congress cracked down on a popular tax shelter that allowed rich people to take advantage of the exempt status of charities without actually giving away much money.
Individuals who had already set up these vehicles were allowed to keep them. That included Mitt Romney, then the chief executive officer of Bain Capital, who had just established such an arrangement in June 1996.
The charitable remainder unitrust, as it is known, is one of several strategies Romney has adopted over his career to reduce his tax bill. While Romney’s tax avoidance is legal and common among high-net-worth individuals, it has become an issue in the campaign. President Barack Obama attacked him in their second debate for paying “lower tax rates than somebody who makes a lot less.”
In this instance, Romney used the tax-exempt status of a charity -- the Mormon Church, according to a 2007 filing -- to defer taxes for more than 15 years. At the same time he is benefitting, the trust will probably leave the church with less than what current law requires, according to tax returns obtained by Bloomberg this month through a Freedom of Information Act request.
In general, charities don’t owe capital gains taxes when they sell assets for a profit. Trusts like Romney’s permit funders to benefit from that tax-free treatment, said Jonathan Blattmachr, a trusts and estates lawyer who set up hundreds of such vehicles in the 1990s.
Near Zero
“The main benefit from a charitable remainder trust is the renting from your favorite charity of its exemption from taxation,” Blattmachr said. Despite the name, giving a gift or getting a charitable deduction “is just a throwaway,” he said. “I used to structure them so the value dedicated to charity was as close to zero as possible without being zero.”


Read more: http://www.bloomberg.com/news/2012-10-29/romney-avoids-taxes-via-loophole-cutting-mormon-donations.html

23 replies, 3529 views

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Arrow 23 replies Author Time Post
Reply Romney Avoids Taxes via Loophole Cutting Mormon Donations (Original post)
MALiberal Oct 2012 OP
appacom Oct 2012 #1
Skittles Oct 2012 #2
LineLineLineReply !
Bozita Oct 2012 #12
SoapBox Oct 2012 #7
aletier_v Oct 2012 #3
Marie Marie Oct 2012 #5
aletier_v Oct 2012 #6
lexw Oct 2012 #10
Zynx Oct 2012 #4
Major Nikon Oct 2012 #8
handmade34 Oct 2012 #16
progressivebydesign Oct 2012 #9
lexw Oct 2012 #11
MessiahRp Oct 2012 #14
PaulRevere08 Oct 2012 #17
eyewall Oct 2012 #13
Berlum Oct 2012 #15
AAO Oct 2012 #18
AzDar Oct 2012 #19
Sentath Oct 2012 #20
zonkers Oct 2012 #21
zonkers Oct 2012 #22
wordpix Oct 2012 #23

Response to MALiberal (Original post)

Mon Oct 29, 2012, 12:32 AM

1. Is there no end to Romney's sleaziness?

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Response to appacom (Reply #1)

Mon Oct 29, 2012, 12:34 AM

2. no

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Response to Skittles (Reply #2)

Mon Oct 29, 2012, 02:09 AM

12. !

Last edited Mon Oct 29, 2012, 02:10 AM USA/ET - Edit history (1)

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Response to appacom (Reply #1)

Mon Oct 29, 2012, 01:12 AM

7. No! Dirty Mittens is scum.

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Response to MALiberal (Original post)

Mon Oct 29, 2012, 12:36 AM

3. OMG. Does it mean he screwed the Mormon church, too?!

Mitt The Awesome!!!

hahaha. omg its so excellent, tell me that is what this means!

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Response to aletier_v (Reply #3)

Mon Oct 29, 2012, 12:43 AM

5. At this point, Mitt Romney would screw over Mitt Romney if he could make a buck out of it.

Honestly, it must be sad to be such a slave to money and spend all that energy constantly trying to get more of what you do not need. Pathetic.

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Response to Marie Marie (Reply #5)

Mon Oct 29, 2012, 12:47 AM

6. It is. I was arguing this last night with a tea partier

the sin of avarice. it's a massive personality flaw, the blind pursuit regardless of health family or morals. maybe that's the real reason he won't release his records. the Mormon church would find out the truth about his donations.

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Response to Marie Marie (Reply #5)

Mon Oct 29, 2012, 01:53 AM

10. :D

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Response to MALiberal (Original post)

Mon Oct 29, 2012, 12:40 AM

4. So he's ripping off his own church to save a few bucks on taxes?

Really classy there, Mitt.

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Response to Zynx (Reply #4)

Mon Oct 29, 2012, 01:26 AM

8. If churches didn't receive tax benefits (subsidies), their tax bill would be about $100 billion

...each year.

Churches are ripping off the taxpayer already, so I don't see how they have much room to complain.

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Response to Major Nikon (Reply #8)

Mon Oct 29, 2012, 06:04 AM

16. !!!!

one of the bigger scams out there

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Response to MALiberal (Original post)

Mon Oct 29, 2012, 01:41 AM

9. I'm sorry, but sometimes I think the entire Mormon thing is one big ponzi scheme.

They only spend their money to send people to recruit more people to pay into the church. the charity they do seems to only benefit others who are paying into the church... AND they own shopping malls, and huge investment vehicles, and seem to only do business with other Mormons. Could it be that this was all conceived to enrich a select group of people?

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Response to progressivebydesign (Reply #9)

Mon Oct 29, 2012, 01:56 AM

11. Wow.

Interesting. That's a great point.

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Response to progressivebydesign (Reply #9)

Mon Oct 29, 2012, 04:15 AM

14. It is.

This is why I say Churches should all be taxed. Including all of their related investments. Some of these churches, not just Mormons, have made tithing into a way to expand the wealth of the people in charge. They're selling a product that provides nothing in return and they get away with it constantly. Most of these churches are also doing little to no actual charity and some only do charity (like "Missionary work") if it ties into proselytizing. We shouldn't be giving tax breaks to churches on charity work based on conversion attempts. Frankly if the only way you do something good for someone else is if they do something for you, that's not charity at all. (I feel the same way about rich people making "charitable" donations when they only do it as a tax write-off and would discontinue the practice if the Government didn't flip the bill.)

So I say tax them all. Most of them are subverting the law by preaching politics illegally anyway. Why bother with this continued charade. I can only imagine how much more money our tax coffers would have if we got to tax some of these super rich, bloated, mega churches.

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Response to MessiahRp (Reply #14)

Mon Oct 29, 2012, 08:35 AM

17. As scams go, the LDS Church is one of the more successful ones.

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Response to MALiberal (Original post)

Mon Oct 29, 2012, 03:13 AM

13. That's the Spirit!

Loopholes for god.

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Response to MALiberal (Original post)

Mon Oct 29, 2012, 04:33 AM

15. Romney-Republican sleaziness is gross (R)

Crapping all over America to line his own stanking pockets

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Response to MALiberal (Original post)

Mon Oct 29, 2012, 08:43 AM

18. Piece of Buffalo Dung - Very Large Piece.

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Response to MALiberal (Original post)

Mon Oct 29, 2012, 08:44 AM

19. God, he's just *horrible*.

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Response to MALiberal (Original post)

Mon Oct 29, 2012, 07:55 PM

20. A scam mentioned in the Bible

http://www.enduringword.com/commentaries/4015.htm Item 3 outlines it quite cogently:

3. (4-6) An example of how their traditions dishonored God: the practice of not helping your parents with resources said to be devoted to God.

“For God commanded, saying, ‘Honor your father and your mother’; and, ‘He who curses father or mother, let him be put to death.’ But you say, ‘Whoever says to his father or mother, “Whatever profit you might have received from me is a gift to God”; then he need not honor his father or mother.’ Thus you have made the commandment of God of no effect by your tradition.”

a. Honor your father and mother: The clear command of God said that everyone should give honor to their father and mother – even stating a penalty for extreme disobedience to this command. When we are adults and no longer in our parent’s household or under their authority, we no longer have to obey our father and mother. Yet we are still commanded to honor them; that command endures.

b. Whatever profit you might have received from me is a gift to God: Some Jewish people of Jesus’ day had a way to get around the command to honor your father and mother. If they declared that all their possessions or savings were a gift to God that were especially dedicated to Him, they could then say that their resources were unavailable to help their parents.

i. “This convenient declaration apparently left the property actually still at the disposal of the one who made the vow, but deprived his parents of any right to it.” (France)

ii. “Our Saviour here also let us know, that the fifth commandment obligeth children to relieve their parents in their necessity, and this is the sense of the term honour in other texts of Scripture.” (Poole)

c. Thus you have made the commandment of God of no effect by your tradition: Through this trick someone could completely disobey the command to honor his father or mother, and do it while being ultra-religious.

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Response to MALiberal (Original post)

Tue Oct 30, 2012, 07:34 AM

21. kick. why is this thread not numero uno?

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Response to zonkers (Reply #21)

Tue Oct 30, 2012, 09:54 AM

22. kick.

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Response to MALiberal (Original post)

Tue Oct 30, 2012, 10:15 AM

23. R$'s name is well deserved, what a sleaze - no wonder he's buds with Limpballs & Trump

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