Tax Forms Hold Key: Millionaire Mitt’s Gotta Admit If He’s a Tax Fraud or a Vulture Capitalist
GOP presumptive presidential candidate Mitt Romney, as noted in ThisCantBeHappening! yesterday, is probably stonewalling demands that he release his 2009 and earlier IRS filings because they could expose to the public that he availed himself of a 2009 IRS amnesty for those who admitted to earlier felonious hiding of income in Swiss and other foreign tax havens. Some 30,000 wealthy taxpayers did just that after a whistleblower broke the news that thousands of clients of Swiss Bank UBS were illegally hiding income at the bank, and the IRS sued for the names, while also offering the get-out-of-jail amnesty pass option.
But a reader, Phil Birkhahn, points out in his own blog called Romney the Tax Cheat that the slippery Harvard Law grad Romney may also have fraudulently ducked paying taxes in later -- and earlier -- years. Either that or he has to man-up and accept managerial responsibility for the obnoxious anti-worker and anti-America policies of his Bain Capital company during the 1999-2002 years, and in later years, during times when he asserting that he played none any but a passive investor role in the venture capital firm.
The problem for Romney is that the IRS taxes income significantly differently and allows far fewer deductions, especially for losses, for people who say they were only passive investors in a company than for those who say they were active in management.
Although Romney, whose whole basic argument to voters is that they should elect him because he is a great businessman who will run America "like a business," also bizarrely at the same time claims that on "Feb. 1999 I left Bain Capital and all management responsibility," and says "I had no ongoing activity or involvement," meaning he was a passive investor in the firm, which he still owned 100% from that date until 2002, He is also listed as late as 2002 as one of the two managing members of Bain Capital in its annual report, and the company's SEC filings list him as CEO, President and managing director as well as sole owner in 2000 and 2001. That would make him an active investor.
If Romney was in fact an active investor, he would have been able to deduct so many expenses and losses that as a shrewd tax lawyer he probably managed to get his taxes down substantially. But if he was really, as he claims on the stump and in interviews when pressed about Bain’s atrocities, like the exporting of jobs of companies it bought to China and elsewhere, then he was not entitled to those deductions he claimed.