None of the Bain entities had previously been listed on Romney’s 2011 financial disclosure.
The details of Romney’s severance agreement have largely remained secret, but experts in private equity finance and taxation say that the financial fallout from Romney’s retirement plan will continue to reverberate.
Romney plans to use federal blind trust if elected
Romney’s Admission Raises Questions About Tax Avoidance, Length of Bain Tenure– OFA Robert Bauer, General Counsel
“First, Governor Romney now admits to the Associated Press that the personal trusts holding his investments are not truly ‘blind’ under federal ethics law. For almost a decade, Governor Romney has claimed an arms’ length relationship from his investments by claiming a ‘blind trust,’ which was being managed by his personal attorney. That is how he denied responsibility for his investments in a Swiss bank account, Chinese companies, companies that do business in Iran, and Bermuda and Cayman Island tax havens. Yet, even as he admits that his ‘blind’ trust isn’t truly blind, he’s only promising to fix it if he’s elected president. This raises serious questions about exactly what conflicts of interest currently are raised by Mitt Romney’s foreign investments and how they impact his policies and positions on the campaign trail.
Second, the Associated Press has discovered that, in 2010, while Mr. Romney was planning to run for President, it was arranged for a family trust to acquire new interests in Bain Capital through a Bain partnership established in the Cayman Islands. This arrangement entitles the Romneys to millions of dollars in fresh income from his Bain profit sharing agreement for years to come. Remarkably, Governor Romney’s campaign has admitted that he continues to receive the 15% carried interest tax rate – instead of ordinary income rates — on his Bain capital profits. These carried interest rates are available to active participants in investment firms who provide ‘services’ to those firms. But Mitt Romney claims to have ceased any formal relationship with Bain in 1999 and distances himself from any Bain Capital actions or investments since that time. The basis for this preferential tax treatment is not known, because the Governor will not disclose it.
In fact, none of Romney’s agreements with Bain, including his retirement agreement, have been disclosed, ‘leaving voters with little information about his continuing ties to the firm.’ Nor has the Governor yet fulfilled the commitment he made during the primaries to provide, as have Presidential candidates before him, more than one year of tax returns.
Therefore, only the Governor can answer the significant questions raised by what we do know about his investments and tax obligations. These include:
— Why has the Governor decided to defer the establishment of a true blind trust–committing to it only in the event that he wins the election? What level of involvement in his trust and investments is the current “non-blind’ arrangement structured to protect?
— What are the conflict of interest implications of the arrangements made now, when the Governor is a presidential candidate, for millions to be paid to him during a Romney Presidency?
— If the Governor has ceased providing services to Bain, how does he continue to receive preferential carried interest tax rates on his Bain investments? What is the nature of the financial relationship he maintains with Bain Capital?
— When will the Governor release the tax returns required to allow for a clear picture of his investment and tax strategies and positions in recent years?”
And for your perusal; here’s 3 Chics links to our post regarding Romney’s TAX RETURN
And these CLASSICS!
Seriously folk, Barack Obama would never be allowed to hold off, EVADE, and set up various offshore accounts without 366/24/7 MEDIA SCRUTINY.
Mitt Romney has serious questions to answer about his ongoing relationship with Bain and the preferential tax treatment he receives. “Swiss bank accounts. Money hidden in the Cayman Islands. Bain capital income. The Obama campaign warned Thursday that Republican presidential candidate Mitt Romney will have full access to those three pots of money and more unless he puts his investments in a federally-recognized blind trust.”
MSNBC: Obama campaign calls for Romney to put assets into new blind trust:
Obama campaign officials criticize Mitt Romney’s federal blind trust plan
By Tom Hamburger, Published: June 7
Obama campaign officials said Thursday that Republican presidential candidate Mitt Romney’s plan to set up a federal blind trust if he wins is insufficient to assure the public that he would not face conflicts of interest.
“There are a whole series of questions that need to be answered,” said former White House counsel Robert Bauer, who advises President Obama’s reelection team. He ticked off a list of concerns about Romney’s investment portfolio, including the candidate’s holdings in China and in foreign tax havens and his use of tax deductions intended to reward investment managers.
Romney, a former governor of Massachusetts, has long said that his investments are managed by a blind trust certified in that state. However, that trust does not meet federal standards for independence, in part because it is directed by a friend of Romney’s who works for the law firm that represents the firm the candidate founded, Bain Capital.
The Romney campaign dismissed the criticism.
“Another day, another tired distraction by the Obama campaign,” spokeswoman Andrea Saul said in an e-mail. “As has been reported for years, Governor and Mrs. Romney’s assets are managed on a blind basis. They do not control the investment of these assets, which are under the control and overall management of a trustee.”
In the past, presidential candidates have established federally acceptable blind trusts or disclosed their assets to the public for review. Citing a confidentiality agreement he has with Bain Capital, Romney has declined to disclose the underlying assets in accounts held by Bain.
REALLY, A DISTRACTION, MITT ROMNEY?
the tax return stuff bothers me because it’s all part of his ‘ entitlement’ syndrome. All of the Presidential candidates, going back DECADES have released their tax returns, but Willard doesn’t think the rules apply to him.
Romney Just Making Stuff Up Now
By Jonathan Chait
A couple weeks ago, Mitt Romney quoted Noam Scheiber’s book about the Obama administration’s economic rescue, The Escape Artists, in a highly misleading way. Yesterday he did it again, only this time Romney altered his description so that whatever shred of truth that once existed in his telling is gone, and nothing remains but a pack of lies. Here’s Romney’s incredibly false account:
A book that was written in a way that’s apparently pro-President Obama, was written by a guy named Noam Scheiber and in this book he says that there was a discussion about the fact that Obamacare would slow down the economic recovery in this country and they knew that before they passed it. But they concluded that we would all forget how long the recovery took once it had happened, so they decided to go ahead. The idea that they knowingly slowed down our recovery in order to put in place Obamacare, which they wanted and they considered historic but the American people did not want or consider historic, is something which I think deserves a lot of explaining …
The lies. Let us tote them up.