Romney Avoids Taxes via Loophole Cutting Mormon Donations
Source: Bloomberg
By Jesse Drucker - Oct 29, 2012 12:01 AM GMT-0400
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 Romneys 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 dont owe capital gains taxes when they sell assets for a profit. Trusts like Romneys 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.
Read more: http://www.bloomberg.com/news/2012-10-29/romney-avoids-taxes-via-loophole-cutting-mormon-donations.html
fasttense
(17,301 posts)sharkman25
(143 posts)if we were to take all of the wealth of the 1% in this country - including the taxes that they would have paid without the LEGAL loopholes, we would still have a massive deficit! The deficit is over 16-TRILLION my friend and the amount of taxes that would have been paid w/o the loopholes would barely be a drop in the THAT bucket.
I have no problem with people abiding by the tax laws, including those that allow for lower payment of taxes. Even our liberal friends in congress do that. What I DO have a big problem with is the ILLEGAL avoidance of taxes visa/via not paying what is owed!
edited to add this link showing the richest Americans. Go ahead and add up their wealth and see if it comes anywhere near our 16-trillion debt.
Pab Sungenis
(9,612 posts)The deficit has never been anywhere near $16 trillion. It's slightly over $1 Trillion, fueled mainly by Bush's tax cuts and wars of choice, and has been on a downward trend thanks to Obama.
sharkman25
(143 posts)I notice that all you did was say that you disagree, but the numbers don't lie....add it up. It takes a a Thousand Billion to equal 1-Trillion!
Raster
(20,998 posts)...that's where the majority of the deficit comes from.
Nice talking points! Get them from Faux or Flush?
sharkman25
(143 posts)your reference to my using so-called "talking-points" is unnecessary and does nothing to refute my statement. If you wish to put your fingers in your ears and stick your tongue out, that's your business. I await a response from you with substance that refutes my claim. I'm not your enemy, Raster. I've put forth a link showing the richest people in this country sorted by net worth and if you will take the time to add it up you will see that my point is accurate. I doubt you will because it's easier to launch ad-hominem attacks than it is to do reasearch.
AndyA
(16,993 posts)Along with the two wars, and reckless and irresponsible Republican policies. The same policies that Mitt Romney wants to bring back if he wins.
sharkman25
(143 posts)I should qualify that the tax rate on the rich is a problem, but to state it in such a way as to say that THAT's the ONLY reason why we have a 1-TRillion deficit is mathmatically not factual.
I think you have confused "deficit" with "debt. The debt is $16T.
Yes, picky.
Edit: This was a reply to Sharkman25.
sharkman25
(143 posts)grantcart
(53,061 posts)aint_no_life_nowhere
(21,925 posts)"In this instance, Romney used the tax-exempt status of a charity -- the Mormon Church, according to a 2007 filing"
Are they referring to Romney's 2007 tax filing? I didn't think FOIA allowed them to obtain privileged returns from the IRS. Anyone understand what source material Bloomberg is referring to?