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Friday, January 27, 2012

Romney is "stupid rich"

That's Larry's phrase, not mine, but it fits.  His recent release of 2 years of tax forms reveals some eye-opening numbers.  He makes $20 million a year on his investments, which is essentially the INTEREST on his money.  Really a crazy amount of income.  And he hides his money, in the Caymans and Swiss bank accounts.  And this:

Passing Money Down To His Family
Romney’s sons have a trust fund worth $100 million.
Johnston says currently the maximum amount a married couple can pass to their children without paying gift taxes is $10 million. But the Romney’s confirmed through their lawyers that they did not pay any gift tax on the $100 million account. How is this possible?
“They apparently gave the sons some of their carried interest. And because the carried interest is not an ownership, it is a right to receive profits, Congress lets you value that gift at zero,” Johnston said.
“When you get the income you have to pay it at the 15 percent rate. It means that the parents have effectively pushed forward not just the 100 million the sons have, they avoided the $31 million in gift tax, so they’ve really in effect given their sons the equivalent of $130 million without paying any tax and nobody can do that except people who run private equity funds like Bain Capital Management,” Johnston said.



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