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View Diary: I just gotta call out Mitt Romney on this (23 comments)

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  •  Tim DeLaney, Look at the correct FACTS! (1+ / 0-)
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    Tim DeLaney

    You are correct that a return of capital is not taxed.

    You are correct that a profit on the sale of stock is taxed, but you did not discuss the difference between:
    short term capital gains (a profit on an investment held LESS that one year) which is taxed as straight income (at the same rate as wages) ,
    and
    long term capital gains (a profit on an investment held MORE that one year) which is taxed at capital gains rates (at a lower tax rate than earned income).

    But even that misses the thing R-MONEY is LYING about.

    Mittens gets paid MOST (the VAST majority) of his "earnings" at capital gains rates because it includes what is referred to as "carried interest," the portion of profits that VC firms retain from the total profits in a fund.  Under present tax law, "carried interest" is treated as "long term capital gains" even when the VC PUT UP NO CAPITAL AT ALL, in which case the VC can't even say he is getting a profit on his capital.

    Scott Pelley interviewed Mitt Romney on “60 Minutes” which was broadcast on September 23, 2012.
    Part of that interview was the following:

    Pelley: Now, you made on your investments, personally, about $20 million last year. And you paid 14 percent in federal taxes. That's the capital gains rate. Is that fair to the guy who makes $50,000 and paid a higher rate than you did?
    Romney: It is a low rate. And one of the reasons why the capital gains tax rate is lower is because capital has already been taxed once at the corporate level, as high as 35 percent.
    Pelley: So you think it is fair?
    Romney: Yeah, I think it's the right way to encourage economic growth, to get people to invest, to start businesses, to put people to work.
    Obviously, Mittens "mis-spoke" by saying "capital is taxed" when he meant to say that "profits has already been taxed once at the corporate level, as high as 35 percent."  But even giving Mittens the benefit of THAT blooper, HE IS STILL LYING, and he knows it.

    Money that is treated as capital gains may not be taxed at all "at the corporate level" if the entity that generated it is a pass through entity which pays ZERO tax, such as a partnership, a limited partnership (LP), a limited liability partnership (LLP), a limited liability company (LLC), or an "S" Corporation.

    In particular, in Mitt Romney’s tax return for 2011, it appears that much of his capital gain income came from LLCs and at least one limited partnership.

    Romney is NOT believable. That is a POLITE way of saying that R-MONEY is an F'ing LIAR.

    As far as I can tell, most VC-type organizations do EVERYTHING through LLPs or LLCs, specifically to avoid CORPORATE tax.

    For the record, I run a company that is an LLC, so I understand EXACTLY how profits at the "corporate level" flow through untaxed to the owners of the LLC, of which I am one.

    That is why I can tell you that R-MONEY is an F'ing LIAR and HE KNOWS IT.

    "The battle, sir, is not to the strong alone; it is to the vigilant, the active, the brave." -- Patrick Henry November 6, 2012 MA-4 I am voting for my friends Barry, Liz and Joe (Obama, Warren and Kennedy)

    by BornDuringWWII on Tue Sep 25, 2012 at 01:21:21 PM PDT

    •  I more or less thought that Mitt (0+ / 0-)

      had a much more complex tax situation than does a shareholder of GE. You have clarified some of that for me. Thanks

      Job creators?? Imagine what George Carlin would do with that. -7.25 -6.21

      by Tim DeLaney on Tue Sep 25, 2012 at 01:46:28 PM PDT

      [ Parent ]

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