NY Attorney General Eric Schneiderman
The source of Mitt Romney’s personal wealth continues to generate awkward headlines after it emerged that regulators have subpoenaed Bain Capital, the private equity firm he once headed, during an investigation into its tax arrangements.
New York’s Attorney General, Eric Schneiderman, is seeking internal documents that will establish whether Bain – along with 11 other firms – has been forgoing management fees in favour of investments in the funds which they manage. Investments are taxed at a far lower rate than ordinary income.
The practice falls into a legal grey area. Some lawyers consider it an aggressive but legitimate means of tax avoidance; others believe it strays beyond the bounds of legality. Bain Capital is believed to have used it to avoid paying around $220 million in taxes, according to The New York Times, which broke news of the subpoena at the weekend.
Mr Romney left Bain over a decade ago, but continues to profit handsomely from his ties to the firm, and in the past two years earned roughly $13 million from his share of its profits…
Consistency truly stalks these creeps – stuck into defending their avoidance of responsibility in America’s class-based economy.
Our nation long ago established a system of fair and progressive taxation and the means and methods arranged by tax lawyers, lobbyists and corrupt politicians to subvert that system stinks on ice.