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Bain Capital Under Investigation for Tax Evasion

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Romney's Former Company Under Investigation For Tax Evasion | ThinkProgress

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.”

I have an idea to save Medicare and the budget deficit. Have Romney pay up on his taxes!

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And Obamas treasury secretary is a tax cheat...so whats your point?

Another day, another "two wrongs make a right" fallacy...

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I wonder if MDMA's point is that Mitt couldn't get confirmed in the Senate....

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I don't understand, if Bain is so evil, why does EVERYONE invest with them? Including almost every major retirement fund from the states across the country.

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Holder/Obama covering up illegal gun sales internationally. This is news, Bain/Romney is not.

Come on, you know how this works. The gun investigation is political, this on the other hand is pure and just.

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I don't understand, if Bain is so evil, why does EVERYONE invest with them? Including almost every major retirement fund from the states across the country.

Hold down the shift key, and press the 4 key at the same time.

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Come on, you know how this works. The gun investigation is political, this on the other hand is pure and just.

Both are political.

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I don't understand, if Bain is so evil, why does EVERYONE invest with them? Including almost every major retirement fund from the states across the country.

that would be pretty clear. If they saved 200 million on taxes they were able to pay higher returns. Not attempting to prejudge the facts at all but whether that 200 millions savings were legal or not really isn't the investor's concern, it's the governments and apparently some government is now checking it out.

If you are going to live in the bright lights you have to expect to be investigated. As the Bard said, "Ceasar's wife must be above suspicion".

Edited by Gehringer_2

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Both are political.
I wouldn't completely agree. The illegal gun trafficking is a known criminal act(s) which the two are covering up. The opposition has used it as a political point, though I wonder why they haven't used it more loudly. If Bain/Romney did criminal wrongdoing, it has yet to be demonstrated.

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Holder/Obama covering up illegal gun sales internationally. This is news, Bain/Romney is not.

Romney has made Bain news.

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I wouldn't completely agree. The illegal gun trafficking is a known criminal act(s) which the two are covering up. The opposition has used it as a political point, though I wonder why they haven't used it more loudly. If Bain/Romney did criminal wrongdoing, it has yet to be demonstrated.

coverup has yet to be proven either, both are in investigation stages. Both are political.

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Holder/Obama covering up illegal gun sales internationally. This is news, Bain/Romney is not.

A major corporation in which thousands of people have invested in being charged with Tax evasion is news.

Even if it has no ties to Romney, and the evasion is completely out of his control the people should know if a company they've invested in is breaking the law.

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coverup has yet to be proven either, both are in investigation stages. Both are political.
I will opine that failing to release the subpoenaed documents amount to coverup.......so much for investigation.

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A major corporation in which thousands of people have invested in being charged with Tax evasion is news.

Even if it has no ties to Romney, and the evasion is completely out of his control the people should know if a company they've invested in is breaking the law.

Bain is news. Romney/Bain is stale. Maybe you didn't notice Post #1 as Couga retied it back to Romney as a political snark

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http://www.nytimes.com/2012/09/02/business/inquiry-on-tax-strategy-adds-to-scrutiny-of-finance-firms.html?_r=1&pagewanted=all

Some executives at the firms said they feared that Mr. Schneiderman, a first-term Democrat with ties to the Obama administration, was seeking to embarrass the industry because of Mr. Romney’s roots at Bain. Others suggested that the subpoenas, which were issued by the attorney general’s Taxpayer Protection Bureau, might be part of an effort to recover more revenue for New York under state tax law. The attorney general’s office does not have the power to enforce federal tax laws.

A spokesman for Mr. Schneiderman declined to comment.

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.

In 2007, the agency began taking a closer look at suspected tax abuses at hedge funds and private equity firms. In a statement at the time, an I.R.S. spokesman said that management fee conversions were among several “areas of possible noncompliance.” But no formal ruling appears to have emerged.

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Coincidentally, I just read an article about this Schneiderman in another context. Evidently he's in hot water himself over his participation in a scheme using taxpayer funds to buy the silence of a couple of victims of sexual harassment by a NYC politician.

So I guess a third possibility might be to distract from his own misdeeds.

Nevertheless, Romney is the "former" ceo, the maneuver evidently isn't illegal, and this investigation stinks to high heaven. If the DNC is smart, they will distance themselves from this state AG.

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The tax code is 73,000+ pages for a reason......so that companies and individuals with the means can find loopholes.....and hand that money directly back to the politicians.

Anyone that is offended by Bain getting a tax break, GE getting a tax break, or Tim Geitner evading paying alltogether should get on the band wagon for major tax reform.

A fair tax would be 1 page long. Real freedom would be abolishing all income taxes. Until we all agree on one of those....there will always be stories like this. This is what our current system is set up for....and both parties support it.

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The tax code is 73,000+ pages for a reason......so that companies and individuals with the means can find loopholes.....and hand that money directly back to the politicians.

Anyone that is offended by Bain getting a tax break, GE getting a tax break, or Tim Geitner evading paying alltogether should get on the band wagon for major tax reform.

A fair tax would be 1 page long. Real freedom would be abolishing all income taxes. Until we all agree on one of those....there will always be stories like this. This is what our current system is set up for....and both parties support it.

Yup.

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I will opine that failing to release the subpoenaed documents amount to coverup.......so much for investigation.

It's very possible, but not proven.

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This AG is basically the next coming of Elliot Spitzer, hopefully minus the whores. We need more folks like him w/ the testicular fortitude to actually do something to the banksters, as much as possible.

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If this "Schneiderman" is the same Eric of AG fame - he is nothing but a sell-out and puppet of the criminal Wall Street banks. He was the lone AG opposing the blanket bank settlements for their abuses of mortgage fraud, the robo-signing scandal, MERS, and REMIX. He had them by the balls and could have blown the lid off the entire smelly cesspool of the entire housing melt down.

But he leveraged his position and then sold out. He's a criminal himself and should be in the Graybar Hotel with all the crooks he allowed to go free.

Screw him, put him in the town square in blocks and give me a dump truck full of rotten fruit. When I'm done then give him some serious punishment.

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If this "Schneiderman" is the same Eric of AG fame - he is nothing but a sell-out and puppet of the criminal Wall Street banks. He was the lone AG opposing the blanket bank settlements for their abuses of mortgage fraud, the robo-signing scandal, MERS, and REMIX. He had them by the balls and could have blown the lid off the entire smelly cesspool of the entire housing melt down.

But he leveraged his position and then sold out. He's a criminal himself and should be in the Graybar Hotel with all the crooks he allowed to go free.

Screw him, put him in the town square in blocks and give me a dump truck full of rotten fruit. When I'm done then give him some serious punishment.

This is correct.

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