Google Groups no longer supports new Usenet posts or subscriptions. Historical content remains viewable.
Dismiss
On the trail for Bain
8 views
Skip to first unread message
evl...@wanadoo.fr
Sep 2, 2012, 3:02:05 AM9/2/12
to
(In the 80s were were involved in a similar tax avoidance scheme which is what it is. Overall
it did not work that well, it is a gimmick which has long been practiced and why
Romney pays a low low tax rate. I wonder how the people would vote on using it?)
The New York Times is reporting that Bain Capital, the private equity firm founded by GOP presidential nominee Mitt Romney, is among a number of firms being investigated by New York Attorney General, Eric Schneiderman, for failing to pay taxes.
The New York AG’s Taxpayer Protection Bureau has issued subpoenas to at least twelve financial firms, including Bain, looking into whether the companies converted management fees (taxed as ordinary income) paid by investors into fund investments which are taxed at a dramatically lower rate.
The controversial tax avoidance scheme came to light last month when Bain Capital internal financial information was published online by Gawker.com , however the investigation had reportedly commenced prior to the publication and is not believed to be tied to the document dump.
According to the Times
The tax strategy — which is viewed as perfectly legal by some tax experts, aggressive by others and potentially illegal by some — came to light last month when hundreds of pages of Bain’s internal financial documents were made available online. The financial statements show that at least $1 billion in accumulated fees that otherwise would have been taxed as ordinary income for Bain executives had been converted into investments producing capital gains, which are subject to a federal tax of 15 percent, versus a top rate of 35 percent for ordinary income. That means the Bain partners saved more than $200 million in federal income taxes and more than $20 million in Medicare taxes.
While Governor Romney has not been active at Bain Capital for quite some time, he does continue to receive profits from the company and held investments in some of the funds that utilized the tax avoidance strategy.
The Romney campaign issued a statement indicating that the Governor had not benefited from the practice.
R. Bradford Malt, an attorney for Governor Romney who manages the Governor’s investments and trusts, argued that investing fee income is a common, accepted and totally legal practice. “However, Governor Romney’s retirement agreement did not give the blind trust or him the right to do this, and I can confirm that neither he nor the trust has ever done this, whether before or after he retired from Bain Capital.”
According to Jack S. Levin, a finance lawyer who has represented Bain Capital, the practice has been in use by investment firms for twenty years and is something the IRS knows about.
The investigation will, inevitably, raise questions as to whether or not Attorney General Schneiderman, who has strong contacts to the Obama Administration, is attempting to embarrass Romney as we head towards the November election.
Still, prominent investment firms, including Blackstone Group and The Carlyle Group, have noted in regulatory filings that they have not participated in diverting management fees into investments in their funds.
it did not work that well, it is a gimmick which has long been practiced and why
Romney pays a low low tax rate. I wonder how the people would vote on using it?)
The New York Times is reporting that Bain Capital, the private equity firm founded by GOP presidential nominee Mitt Romney, is among a number of firms being investigated by New York Attorney General, Eric Schneiderman, for failing to pay taxes.
The New York AG’s Taxpayer Protection Bureau has issued subpoenas to at least twelve financial firms, including Bain, looking into whether the companies converted management fees (taxed as ordinary income) paid by investors into fund investments which are taxed at a dramatically lower rate.
The controversial tax avoidance scheme came to light last month when Bain Capital internal financial information was published online by Gawker.com , however the investigation had reportedly commenced prior to the publication and is not believed to be tied to the document dump.
According to the Times
The tax strategy — which is viewed as perfectly legal by some tax experts, aggressive by others and potentially illegal by some — came to light last month when hundreds of pages of Bain’s internal financial documents were made available online. The financial statements show that at least $1 billion in accumulated fees that otherwise would have been taxed as ordinary income for Bain executives had been converted into investments producing capital gains, which are subject to a federal tax of 15 percent, versus a top rate of 35 percent for ordinary income. That means the Bain partners saved more than $200 million in federal income taxes and more than $20 million in Medicare taxes.
While Governor Romney has not been active at Bain Capital for quite some time, he does continue to receive profits from the company and held investments in some of the funds that utilized the tax avoidance strategy.
The Romney campaign issued a statement indicating that the Governor had not benefited from the practice.
R. Bradford Malt, an attorney for Governor Romney who manages the Governor’s investments and trusts, argued that investing fee income is a common, accepted and totally legal practice. “However, Governor Romney’s retirement agreement did not give the blind trust or him the right to do this, and I can confirm that neither he nor the trust has ever done this, whether before or after he retired from Bain Capital.”
According to Jack S. Levin, a finance lawyer who has represented Bain Capital, the practice has been in use by investment firms for twenty years and is something the IRS knows about.
The investigation will, inevitably, raise questions as to whether or not Attorney General Schneiderman, who has strong contacts to the Obama Administration, is attempting to embarrass Romney as we head towards the November election.
Still, prominent investment firms, including Blackstone Group and The Carlyle Group, have noted in regulatory filings that they have not participated in diverting management fees into investments in their funds.
PJ O'D
Sep 2, 2012, 8:51:21 AM9/2/12
to
chatnoir
Sep 2, 2012, 11:01:57 AM9/2/12
to
>
> - Show quoted text -
From Afticle:
"s Bain really a gang of corporate buccaneers who plunder their ill-
gotten gains by outsourcing, euthanizing feeble portfolio companies
and giving cancer to the spouses of those whom they fired? If so,
union bosses, government retirees, liberal foundations and elite
universities thrive on the wages of Bain’s economic Darwinism.
If, however, these institutions relish the yields that Bain Capital
generates by supporting start-ups and rescuing distressed companies,
80 percent of which have prospered, then this money is honest — and
Team Obama isn’t."
And what is Baines:
http://www.democracynow.org/2012/8/30/matt_taibbi_the_secret_to_mitt
excerpt:
"A new article by reporter Matt Taibbi in Rolling Stone sheds new
light on the origin of Republican presidential candidate Mitt Romney’s
fortune, revealing how Romney’s former firm, Bain Capital, used
private equity to raise money to conduct corporate raids. Taibbi
writes: "What most voters don’t know is the way Mitt Romney actually
made his fortune: by borrowing vast sums of money that other people
were forced to pay back. This is the plain, stark reality that has
somehow eluded America’s top political journalists for two consecutive
presidential campaigns: Mitt Romney is one of the greatest and most
irresponsible debt creators of all time. In the past few decades, in
fact, Romney has piled more debt onto more unsuspecting companies,
written more gigantic checks that other people have to cover, than
perhaps all but a handful of people on planet Earth." [includes rush
transcript]"
GLOBALIST
Sep 2, 2012, 11:37:31 AM9/2/12
to
I love how certain people on this site scream "crime was committed" as if
they discovered themselves some glaring bit of history.
You think if any of this old history is pertinenet to today, why
wouldn't that have been pointed out before the primaries?
But of course no one can accuse Obama of any white collar crime
because he always lived off of Holy Mother the State.
they discovered themselves some glaring bit of history.
You think if any of this old history is pertinenet to today, why
wouldn't that have been pointed out before the primaries?
But of course no one can accuse Obama of any white collar crime
because he always lived off of Holy Mother the State.
Alias
Sep 2, 2012, 11:42:57 AM9/2/12
to
On 9/2/2012 5:37 PM, GLOBALIST wrote:
> But of course no one can accuse Obama of any white collar crime
> because he always lived off of Holy Mother the State.
Liar.
> But of course no one can accuse Obama of any white collar crime
> because he always lived off of Holy Mother the State.
--
Alias
Dan C
Sep 2, 2012, 12:24:06 PM9/2/12
to
...............Yeah. Thought so.
PWNED!!!!!!!!!!!!!!!!!!!!
--
"Ubuntu" -- an African word, meaning "Slackware is too hard for me".
"Bother!" said Pooh, as he wondered why he bothered to answer.
Usenet Improvement Project: http://twovoyagers.com/improve-usenet.org/
Thanks, Obama: http://brandybuck.site40.net/pics/politica/thanks.jpg
Alias
Sep 2, 2012, 12:37:34 PM9/2/12
to
On 9/2/2012 6:24 PM, Dan C wrote:
> On Sun, 02 Sep 2012 17:42:57 +0200, Alias wrote:
>
>> On 9/2/2012 5:37 PM, GLOBALIST wrote:
>>> But of course no one can accuse Obama of any white collar crime
>>> because he always lived off of Holy Mother the State.
>>
>> Liar.
>
> Nope. Truth. Name the private sector jobs he's held.
He worked as a civil rights attorney in Chicago and taught
> On Sun, 02 Sep 2012 17:42:57 +0200, Alias wrote:
>
>> On 9/2/2012 5:37 PM, GLOBALIST wrote:
>>> But of course no one can accuse Obama of any white collar crime
>>> because he always lived off of Holy Mother the State.
>>
>> Liar.
>
> Nope. Truth. Name the private sector jobs he's held.
constitutional law at the University of Chicago Law School from 1992 to
2004. In 1983, he worked for a year at the Business International
Corporation, then at the New York Public Interest Research Group. He was
an editor of the Harvard Law Review. During his summers while at
Harvard, he returned to Chicago, where he worked as an associate at the
law firms of Sidley Austin in 1989 and Hopkins & Sutter in 1990. He also
wrote a best selling book.
> ...............Yeah. Thought so.
You and think doesn't compute.
>
> PWNED!!!!!!!!!!!!!!!!!!!!
Not hardly, chum.
--
Alias
rumpelstiltskin
Sep 2, 2012, 10:43:18 PM9/2/12
to
little people pay taxes."
0 new messages