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Sat Oct 13, 2012, 01:27 PM

Rolling Stone Magazine Exposes how Mitt Romney Dodged his Taxes

Rolling Stone Magazine Exposes how Mitt Romney Dodged his Taxes

by Shawn Russell

Rolling Stone Magazine has published a great article online, which will be published in the October 25th issue, so read it before it hits the newsstands. The article deals with the number of ways Mitt Romney dodged his taxes, many of which may not be entirely legal. It provides a great breakdown of Romney’s tax-dodging schemes all in one place. So you don’t have to explore various websites to find this information, you just click on the link I provided and it will all be right under your nose. The article is written by my second favorite writer for the magazine, Tim Dickinson.

Now since I do not wish to violate copyright I have only partially reproduced the article below. If you want to understand the total number of ways Romney dodged his taxes, I implore you to read the article in its entirety.

So without further adieu here are some of Mitt’s schemes:

SWISS SECRECY

On his 2010 tax return, Romney disclosed that his wife Ann's trust held $3 million in a Swiss bank account at UBS, which had just been busted by the IRS for abetting criminal tax evasion by U.S. citizens. As part of a $780 million settlement, UBS was forced to turn over the names of thousands of its long-secret clients, who were then offered a partial amnesty: disclose their hidden assets, pay penalties and avoid prosecution. Romney – who had omitted the Swiss account on previous financial disclosures – suddenly came clean. Did he reveal his secret account to avoid prosecution for tax evasion?

It should be noted that Kossack, Christopher Tucker has a similar theory. In his diary Tucker, hypotheses that:

Mitt Romney is hiding the fact that- according to US law- he should be in a federal prison, but is only free and running for to be the next US president because of the special "amnesty" program offered to 5000 American financial elite, who violated US law in order to hoard their riches in in an illegal tax-evasion scheme, which was cooked up by Swiss banks & exposed by a heroic whistleblower, who- in accord with the new 1% US morality- was the only one to be imprisoned, while Romney & his elite 1% cronies plotted his White House takeover.

The possibility is very realistic.

BERMUDA SHELL GAME

Once again, the very realistic possibility exists that Romney is worth more than he disclosed to the public. Romney hid an unknown amount of wealth in an entity known as the Bermuda Corporation.

Romney has buried an unknown, and perhaps significant, chunk of his wealth in what SEC filings describe as "a Bermuda corporation wholly owned by W. Mitt Romney" – driving speculation that the candidate is worth far more than he has disclosed publicly.

Furthermore,

Romney created his shell company, Sankaty High Yield Asset Investors, in 1997 and reportedly involved it in many of Bain's biggest deals, including the takeover of Domino's Pizza. Yet he failed to report its existence on any financial disclosures prior to his 2010 tax return, even though it is under his control.

LUXEMBOURG SHELTER

There are numerous tax havens throughout the world, wherein a rich man can hide his profits from the public eye or government scrutiny. The laws of the rich are distinct and parallel to the laws of the common masses. Romney can probably get away with dodging his taxes, neither you nor I can.

In 2000, when Romney was CEO of Bain, the firm hit the jackpot: A $40 million investment in the Italian yellow pages during the tech boom returned an astonishing $1 billion. Romney himself reportedly ended up with $50 million – a cut larger than Bain's initial investment. To evade taxes on the gains, Romney steered the profits through Bain subsidiaries in Luxembourg, Europe's most notorious tax shelter, where the money would be exempt from foreign taxes.

RETIREMENT TRICKS

Romney bought rigged stocks which was guaranteed 30 times the initial law investment. In other words Romney got huge amounts of money tax-free.

Romney has stockpiled as much as $87 million in his IRA – even though contributions to such retirement accounts are limited to just $30,000 a year. "Congress never intended IRAs to be used to accumulate that kind of wealth," says Wilkins. To get around the limits, Romney appears to have directed his IRA to invest in a special class of Bain stock. By assigning an artificially low value to the shares, Bain ensured that any returns would be wildly inflated – as much as 30 times the initial investment. By buying rigged stock with his limited IRA dollars, Romney got to reap the bonanza tax-free.

FEE FAKERY

Bain also uses a scheme known as fee conversion to transform smaller management fees – which are supposed to be taxed as regular earnings – into investment income taxed at only 15 percent. A Bain manager simply "waives" his right to his fee and is instead staked an investment of equal value in the private equity fund.

This of course is illegal and the NY attorney general has declared an investigation into fee conversions.
Romney of course does not admit he benefited from this sort of conversion, but Rolling Stone has information to the contrary:

Romney denies he took part in such waivers, which may have robbed the Treasury of up to $220 million. But according to Fleischer, Romney's financial records suggest he "benefited personally from fee conversion."

Again this is just a partial list, please read the article in its entirety.

http://www.dailykos.com/story/2012/10/13/1144122/-Rolling-Stone-Magazine-Exposes-how-Mitt-Romney-Dodged-his-Taxes




Note:

Kos Media, LLC Site content may be used for any purpose without explicit permission unless otherwise specified



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Reply Rolling Stone Magazine Exposes how Mitt Romney Dodged his Taxes (Original post)
ProSense Oct 2012 OP
Berlum Oct 2012 #1
LuckyLib Oct 2012 #18
upi402 Oct 2012 #2
Indep2992 Oct 2012 #3
russspeakeasy Oct 2012 #4
ProSense Oct 2012 #8
phasma ex machina Oct 2012 #5
PA Democrat Oct 2012 #6
LoisB Oct 2012 #9
defacto7 Oct 2012 #12
Tigress DEM Oct 2012 #7
JDPriestly Oct 2012 #17
AnotherMcIntosh Oct 2012 #10
BumRushDaShow Oct 2012 #11
SleeplessinSoCal Oct 2012 #13
mnhtnbb Oct 2012 #14
sad sally Oct 2012 #15
sevenseas Oct 2012 #16
Cha Oct 2012 #19
Spitfire of ATJ Oct 2012 #20
Wednesdays Oct 2012 #21

Response to ProSense (Original post)

Sat Oct 13, 2012, 01:30 PM

1. Romney is a classic Republican 'twofer': dodged the draft, and dodges US taxes

America does not need another chickenhawk republican tax dodger to run this country into the craphouse so they can get richer.

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Response to Berlum (Reply #1)

Sat Oct 13, 2012, 04:30 PM

18. This ought to be posted throughout the country on office doors, meeting

rooms, public places. Rmoney in a nutshell!

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Response to ProSense (Original post)

Sat Oct 13, 2012, 01:30 PM

2. Quick! Call Candy Crowley!!

pfft -sorry

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Response to ProSense (Original post)

Sat Oct 13, 2012, 01:34 PM

3. See, I don't think this will shift the independent voter though

 

Or the low information voter.

They will perceive him to be successful for all of the money he made.

The Sensata story will change minds due to its heart and humanizing factor, but I really don't think this will.

Please check that thread on Sensata out (I put it under General Discussion) and spread that story to the MSM, friends, newspapers, blogs, magazines, and social media! People need to know the human impact of a Romney economy. I don't mean to be a nuisance, I'm just trying to persuade you to help spread this Sensata plant information so that it can become viral.

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Response to ProSense (Original post)

Sat Oct 13, 2012, 01:35 PM

4. Wow, absolutely, Wow

Thanks for the post.

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Response to russspeakeasy (Reply #4)

Sat Oct 13, 2012, 02:28 PM

8. You're welcome : ) n/t

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Response to ProSense (Original post)

Sat Oct 13, 2012, 01:38 PM

5. Myth's a bankster. This is exactly what banksters do.

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Response to ProSense (Original post)

Sat Oct 13, 2012, 01:40 PM

6. Here's a link to the entire article at Rolling Stone Magazine. It is a must-read.

http://www.rollingstone.com/politics/news/mitt-romney-s-tax-dodge-20121012


I'd like to know why someone who doesn't think he is obligated to pay his legal tax obligations to the USA feels entitled to the office of president of that country. If the media was truly "liberal" Romney would be polling at 0.

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Response to PA Democrat (Reply #6)

Sat Oct 13, 2012, 02:41 PM

9. It is definitely a must read. There is another really good article in this week's Rolling Stone

about Mormons by Mikal Gilmore. Would also recommend "Under the Banner of Heaven" by Jon Krakauer - great history of Mormonism woven around the story of the murder of a woman and her baby by her Mormon brother-in-law.

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Response to LoisB (Reply #9)

Sat Oct 13, 2012, 03:03 PM

12. A Great Book.

Excellent read.

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Response to ProSense (Original post)

Sat Oct 13, 2012, 01:40 PM

7. If elected, I just might wind up behind bars anyway. (Romney on truth serum) nt

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Response to Tigress DEM (Reply #7)

Sat Oct 13, 2012, 03:48 PM

17. Which would mean Paul Ryan. Eegads.

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Response to ProSense (Original post)


Response to ProSense (Original post)

Sat Oct 13, 2012, 02:53 PM

11. Thanks for posting!



Alot of this has been highlighted in various long-form articles across the print media but this one does a great job of consolidating it.

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Response to ProSense (Original post)

Sat Oct 13, 2012, 03:19 PM

13. If Floridians can elect a man who committed Medicare fraud, anything is possible.

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Response to ProSense (Original post)

Sat Oct 13, 2012, 03:25 PM

14. I don't understand how this guy gets away with NOT revealing his tax returns

and it doesn't seem to matter to voters.

Talk about stupid. Haven't they heard of the concept of caveat emptor? Buyer beware!

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Response to ProSense (Original post)

Sat Oct 13, 2012, 03:25 PM

15. Peanuts, compared to all the cash here, but imagine - in 2010 Mitt-Ann get a BIG tax refund besides!

Mitt Romney paid $4.6 million in taxes in 2010--a 21% tax rate.

But he only ended up owing $3 million of taxes, a 14% rate.

So the government sent him a check for $1.6 million.


Read more: http://www.businessinsider.com/mitt-romney-got-a-16-million-tax-refund-last-year-2012-7#ixzz29DBtlGm7

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Response to ProSense (Original post)

Sat Oct 13, 2012, 03:27 PM

16. Amen, Amen, and Amen again!

Thank you for posting! This is GREAT!

We need to have OUR OWN talking points- both positive... about the good things- (like the great speeches at the Dem convention, and Obama ordering Osama destroyed)-

and also negative things like Romney sending jobs overseas, and taking down the American flag while Chinese were trained for jobs in the US, and THIS POST IS PERFECT- the laundry list of Romney's tax dodge should be pounded and pounded and pounded.

We have been letting the pundits use such tactics to their advantage- then what do we do... we react to their negativity and that puts us on the defensive and makes them the controllers of the talking points.

How many of us have already forgotten about the huge mistake it was to let Clint Eastwood be the opener for Romney's nomination? WE NEED TO KEEP BRINGING IT UP. That is what the Far Reich Pundits do, every day. They get hold of some tiny thing and blow it up huge. We have GOOD AMMO and we are not using it!

Thanks again!

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Response to ProSense (Original post)

Sat Oct 13, 2012, 04:33 PM

19. Mitt's a Tax Dodger.. not a patriot. nm

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Response to ProSense (Original post)

Sat Oct 13, 2012, 04:43 PM

20. I wouldn't be surprised to discover that he's a slum lord too.

 

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Response to ProSense (Original post)

Sun Oct 14, 2012, 06:31 AM

21. K & R

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