Mitt Romney Gets Tax Break Off Firm Sending Jobs To China

[Tx4obama]

Mitt Romney Gets Tax Break Off Firm Sending Jobs To China

WASHINGTON -- Sensata Technologies is a healthy manufacturing company that employs nearly 200 workers at a factory in Central Illinois. The company has become the focus of national attention because it has been taken over by Bain Capital, which plans to shut the factory down, lay off the workers, and outsource the production to China before the end of the year.

The workers have pleaded with GOP presidential candidate Mitt Romney, the founder of Bain Capital, to exert his considerable influence to save their jobs. Romney still makes millions each year in income from Bain. So far, he has declined to weigh in, and the factory is scheduled to close by the end of the year.

While the workers and the town may suffer, Romney himself has done well as a result of Bain's work with the company. According to his recently released 2011 tax returns, Romney transferred $701,703 worth of Sensata stock to the Tyler Charitable Foundation, a 501(c)3 tax-exempt nonprofit controlled by Romney. The gift is listed on page 323 of the pdf, on form 8283 (below).

Moving the stock to his nonprofit brings Romney twin benefits. First, he gets to deduct the full value of the stock. At a 35 percent tax rate, that's nearly a $250,000 benefit. At 15 percent, it's just over $100,000.

Second, Romney is able to avoid paying capital gains taxes on the stock price increase. Romney's returns list no cost for the stock, and indicate he obtained them as part of a partnership interest in Bain. Avoiding capital gains taxes on the full increase would save an additional $100,000. In 2010, Romney gifted $170,000 worth of Sensata stock to his charity, saving $25,000 in capital gains taxes that year.

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Full article here: http://www.huffingtonpost.com/2012/09/27/mitt-romney-sensata-tax-break_n_1920396.html?utm_hp_ref=elections-2012

[exboyfil]

1. From Forbes story

vast majority of the Tyler Charitable Foundation's contributions go to LDS (around 80% with another 10% to BYU). To understand impact of the Treasury missing out on $200K (or $350K with higher tax rate) we need to know what LDS is doing with the money ($700K). Does anyone know how much of LDS spending would be considered charity in the conventional sense (food, housing, job training, etc)? Also how much if any of the charity is dependent on membership in LDS? LDS takes in $8B a year - where does the money go? Folks could question some of the other Tyler giving such as to the Bush library, but giving to Obama's library will be deductible as well.



http://www.forbes.com/sites/edwindurgy/2012/05/17/an-inside-look-at-the-millions-mitt-romney-has-given-away/