'Carried interest': Why Romney won't release his tax returns?

[ProgressiveEconomist]

'Carried interest': The main reason why Mitt Romney won't release his income tax returns?

On PBS Newshour tonight, Mark Shields just speculated that Mitt Romney's most sensitive secret may be the low low marginal tax rate he's paid on tens of millions of dollars in income. IMO, the most unfair of all the unfair provisions in the tax code is "carried interest", whereby private equity investors get to pay just 15 percent on what many regard as ordinariy income. (See http://en.wikipedia.org/wiki/Carried_interest ). That's a more than 50 percent tax rebate for many of the wealthiest people in the country!

Just imagine the furor that would arise if Democratic proposals to eliminate the HUGE "carried interest" loophole coincided with a Romney admission that he has reaped tens of millions from that bought-and-paid-for tax break!

WHAT'S YOUR OPINION?

[bluerum]

1. My opinion is that the rich are taking us for a ride.

Income is income. Tax it fairly.

[ProgressiveEconomist]

4. Remember the $700 worth of wine Paul Ryan

Remember the $700 worth of wine Paul Ryan enjoyed with a hedge-fund economist at a Capitol Hill restaurant last year? (See http://tpmmuckraker.talkingpointsmemo.com/2011/07/mystery_solved_ryans_dinner_dates_ided.php to refresh lyour memory).

IMO it's that level of chumminess with "anti-tax" Reoublicans that ensures the very wealthy will NOT pay their fair share as long as the Rs filibusters and House Speakership continue.

[gateley]

3. Totally legal, of course. We have to change the system. And I'm glad he's squirming. nt

[ProgressiveEconomist]

5. All any reporter or debate moderator has

to do is ask Romney the following question. THEN IMO you'd REALLY see Mittens squirm!

Mr. Romney, you've made your experience at Bain Capital the centerpiece of your campaing for President. But many private equity and hedge firm managers have enjoyed what many people regard as a very unfair tax break. So-called "carried interest" tax rules allow such people to enjoy a 15 percent marginal tax rate, less than half of what they would pay if their short-term profits were taxed as ordinary income.

Have you PERSONALLY gained from the carried-interest loophole? How much has it saved you in federal income taxes? $100 nukkuib> More?

[ProgressiveEconomist]

6. "nukkuib>" typo: Look on your keyboard

for the character to the right of each letter of the typo, and you'll see I meant "million?"

[gateley]

18. Got it. :-) nt

[csziggy]

19. You're just a step to the left, that's all

I think there's something going around - I've been doing the same thing all week. If it weren't for Firefox spell checkers my messages would be completely encrypted.

[ProgressiveEconomist]

20. Good one! Thanks for that shorthand phrase

I'm sure I'll be using it in the future.

[redqueen]

7. My opinion is that you're right

and this will have to come out if he's the nominee. Should be interesting seeing it play out.

[ProgressiveEconomist]

15. 'Will ... come out if he's the nominee'

True, but couldn't he drag his feet to delay releasing the tax returns? And then only do a partial release?

Do you recall the timetable for tax return disclosures by previous candidates?

[notadmblnd]

8. someone specualted here earlier that he was hiding money from his church

[ProgressiveEconomist]

17. Why wd he so fear his Church?

What can they do to him? Repossess his protective Temple underwear?

[Retrograde]

9. My guess: he pays considerably more in tithes to his church than in taxes

Nothing wrong with charitable contributions - and I have my favorite organizations I support that others may not agree with - but I suspect his returns will show some large contributions to various LDS organizations and a very low - like 0% - tax rate. I also think the returns show that a lot of his income is from foreign sources, which won't play well with the GOP base - plus there's the continuing income Mr. "I'm Unemployed Too" gets from Bain.

[ProgressiveEconomist]

10. Even if other loopholes bring

Mitt's marginal tax rate down even further, wouldn't the 'carried interest' loophole do more to undermine a candidacy trumpeting experience at Bain?

I like the way the 'carried interes' tax break ties in with the roles of hedge funds and private capital in bringiing us to the edge of another Great Depression, the OWS focus on the 1 percent, and Eric Cantor's lavish dinner with 'carried interest' lobbyists (see post #4 above).

[JoePhilly]

11. IMHO ... its that, PLUS ...

he probably has DEFERRED income ... stock options ... and a wide array of other untaxed perks from his time at Bain.

Think of it like this ... once you make so much money a year that you can't spend it all ... you CONVERT the extra salary into tax differed / exempt forms of income ...

You carry this deferred income, and never touch it ... then, when you die, it passes to your estate, which has been structured so that this money passes to your heirs TAX FREE. You never pay tax on it ... and neither do your heirs.

This is why the GOP fights so hard to protect this money. They already have more than enough money, they don't need an actual salary ... and so they defer it, tax free into their estate, and then pass it on tax free when they die.

[rurallib]

12. My guess is that he has some hidden in off-shore accounts also

Swiss? Caymans?
Could be real embarrassing.

[spanone]

13. he'll be forced to release them imho....public opinion if nothing else

[Saving Hawaii]

14. If he's fool enough to keep it secret for now... wait until the generals when all eyes are watching.

Then you ride him until he releases. It'll hurt him a lot more that way.

[ProgressiveEconomist]

22. Will the issue wait that long?

See post @5 above.

[jmowreader]

16. Because of the financial engineering you'll find therein

Romney makes hundreds of millions per year. Not only does almost all of it get taxed at 15 percent, but after his donations to various tax-free institutions his tax bill is probably lower than mine.

[riderinthestorm]

21. Nah, he's not releasing it because Obama's not releasing his "real" birth certificate

Heh, just kidding.

Morning kick for a great thread.