Romney ‘I Dig It’ Trust Gives Heirs Triple Benefit

[Godhumor]

Source: Bloomberg

Romney’s vehicle is known as an “intentionally defective grantor trust” or by the acronym IDGT -- hence the nickname: “I Dig It.” Such trusts permit donors to give potentially unlimited amounts to children free of estate and gift taxes.

Here’s how they work: the person setting up the trust, like Romney, contributes assets such as an interest in a fund or shares in a company. If he makes that contribution before those assets appreciate -- particularly when they are privately held and difficult to value -- he can claim the gift tax obligation is low or non-existent since the declared value is low or zero.

If the trust generates any income -- such as by selling stock -- the eventual tax bill is the responsibility of Romney, not the trust. By paying the capital gains tax, which was 20 percent in the late 1990s and is now 15 percent, he can avoid depleting the funds in the trust -- in essence making an additional donation that’s free of gift taxes.

...

Like at other private-equity firms, Bain managers were permitted to co-invest personally in the firm’s deals. It appears from Romney’s DoubleClick filings with the Securities and Exchange Commission that he or his trust received some of the company’s shares as a co-investor, and others as his stake in Bain’s future profits, or carried interest.

Read more: http://www.bloomberg.com/news/2012-09-27/romney-i-dig-it-trust-gives-heirs-triple-benefit.html

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Great article detailing how Romney has a trust worth $100 million or so he doesn't declare as part of his personal wealth and which will be passed onto his heirs essentially tax-free. The article also goes on saying that Romney's run for president is bringing to light a lot of tax loopholes people were not really aware of before.

[jpbollma]

1. This is disgusting on so many levels

Romney and even many on our side say that we are essentially broke at the federal level and must make drastic cuts. We clearly are not broke. While closing the various loopholes like this may not make up for all of the budget, at least it would reduce the cuts that may be needed. Any cuts in pay and programs to the poor and middle class during fragile times like these is devastating. Before we discuss cuts we should first be discussing why and how the richest among us continue to build their wealth as the vast majority withers.

[Turbineguy]

2. Romney may turn out be

the worst thing to ever happen to the obscenely rich.....

[mopinko]

3. which would make it all worthwhile, eh?

i agree with jon stewart on this- barack obama is the luckiest m.f'er alive. first alan keyes, now this.

[wryter2000]

12. And you remember how he got Alan Keyes

That other guy was running and expected to win until his wife, the actress, revealed the guy had made her go to sex clubs and "participate."

[maxsolomon]

13. Not just ANY actress. Seven of Nine.

Once he lost the Star Trek vote, he knew it was over.

[mopinko]

14. my version of the story-

rove & co couldn't get anti-gay marriage on the ballot in illinois, which was their cover story for the theft of the election, so they dug up some dirt and pushed him off so that they could put up alan keyes. they knew he would lose, but they thought they could take steal the state for georgie. they gave that skinny kid with a funny name about 2 seconds thought.

[Hassin Bin Sober]

20. Yeah that was his biggest break.

The old saying goes, "he had a horseshoe up his ass"

[genxlib]

5. I was thinking the same thing

They should have been happy as the puppet masters in the shadows while they let the GOP carry the water for them.

But they got greedy and wanted to complete the coup by installing one of their own.

But it is backfiring because it is putting all of their ugliness on display.

[Cherchez la Femme]

9. One Can Only Hope

Which is one of the few real Hopes in this administration.

Forward Christian Soldiers, forward!
Invade more Arab countries so the rich can get richer!


Bitter? You bet I am!

It's too bad the opposition is a google times worse!

[tanyev]

4. How nice for Tagg, Biff, Brick, and Thumper.

How very, very nice.

[JHB]

10. Who will no doubt launch careers saying they didn't inherit anything...

...and made it all on their own.

[Cherchez la Femme]

6. IDJIT

As in the wealthy Republicans and Blue Dogs who passed this into law.

What a country -- more a Banana Republic every day.

[formercia]

17. That's why Lawyers become Politicians

..to make laws that benefit them and their Rich friends.

Writing in loopholes is an Art Form; Only Lawyers and very knowledgeable Lay folks can understand what all of the fancy language means. This is how high-priced Lawyers make their living: Like Priests in the Temple, they conjure up victories by being privy to the secret writings.

If all Bills were limited to ten pages and written in simple English, the World would be a lot better for the 99%.

[Festivito]

7. Romneys take benefits of our tax dollars and pays nothing or next to it.

Romney heirs get this tax free shelter for what was earned by our tax dollars.

And, he does not want to pay.

We built, upgraded and maintained the roads.
.. giving his businesses free unfettered access to people and goods.
We kept a justice system at his beckon call..
.. Jails, judges, police to protect his money and his butt
We maintained a military giving him access to the world.
.. Note: We paid with our sons and daughters while he didn't.
We kept his food safe, water safe, air safe and clear.
We gave tax breaks to others supporting ..
.. schools that helped him and his family.
.. the medical industry that keeps him and family healthy.
We kept Social Security insurance on him in case he did fail.

And, now, because he re-invests. That increase in wealth, partially due to OUR INVESTMENT... He and heirs will not part with to pay his fair share.

[formercia]

18. " Why should I support Public Education?"

"My kids all go to Private Academies. Fuck the 47%."

Mitt.

[Festivito]

21. To a lackluster brain, people who can't read warning signs around him sounds fine.

Makes him look brighter, and he's dumb enough to feel brighter because of it.

[EnviroBat]

8. I'm getting really pissed off with all of this Capital Manipulation shit.

These rich pricks have created so many methods of generating unlimited cash for themselves. Who the hell can keep up with all of there little fucking schemes? It's time to put an end to this bullshit. They produce NOTHING. They do NOTHING to help the country sustain itself. I'm starting to really hate rich pricks. I've been pulling up next to exotic cars and flipping off the drivers. It's getting hard to contain my contempt for these thieves.

[liam_laddie]

19. Luxury rides mainly leased?

There are so many high-end BMW's, Lexi, Porsches, etc. around here, often driven by rather young folk, that I suspect the majority are leased. Y'know, the "fancy wheels-no furniture" class. Phonies!

[EnviroBat]

22. Mostly reeal-estate developers.

Using manipulated capital to buy up land and foreclosed properties. Seem like there's a new strip mall going in every week. But the economy "is so terrible". Yeah, it is if you live pay-check to pay-check...

[northoftheborder]

11. Welcome to the Predjudiced Against the Rich Club. Lifetime member here.

[benld74]

15. THIS is the main cause of inequity in this country!

If you got it, or can get it, you get the rules changed to allow you to 'f' over the 'paying taxes' part in YOUR favour. All the rest of us? Through the nose!

[dotymed]

16. The root of all evil and our destruction

[NCLefty]

23. Ugh

More financial shenanigans. Surprise me not.