Saturday, September 1, 2012
ROMNEY’S 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. 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.
Posted by Timsomor at 9/01/2012 11:19:00 PM