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Slow down there, Speedy.New York Attorney General Eric Schneiderman issued a round of subpoenas to five private equity firms back in July. He's investigating a rather common practice in the industry known as the "management fee waiver," whereby fees (which would normally be counted as income, taxable up to 35 percent) are converted instead into investments (later taxable at the lower 15 percent capital gains rate). While it's not exactly illegal, ...
End of story.
Next transparent political hatchet job, please.
Slow down there, Speedy.New York Attorney General Eric Schneiderman issued a round of subpoenas to five private equity firms back in July. He's investigating a rather common practice in the industry known as the "management fee waiver," whereby fees (which would normally be counted as income, taxable up to 35 percent) are converted instead into investments (later taxable at the lower 15 percent capital gains rate). While it's not exactly illegal, ...
End of story.
Next transparent political hatchet job, please.
WASHINGTON (Reuters) - U.S. tax authorities took no formal action after launching a probe five years ago of tax strategies used by private equity managers at firms such as Bain Capital LLC, leaving a legal gray area that is now being examined by New York's attorney general.
IRS warned, but did not act on tax strategy for private equity - chicagotribune.com
Let the investigations begin!
So he's investigating a practice that is entirely legal?
That is soooooooooooo liberal!
New York Attorney General Eric Schneiderman issued a round of subpoenas to five private equity firms back in July. He's investigating a rather common practice in the industry known as the "management fee waiver," whereby fees (which would normally be counted as income, taxable up to 35 percent) are converted instead into investments (later taxable at the lower 15 percent capital gains rate). While it's not exactly illegal, there has been a growing movement away from the practice, with leading firms such as the Carlyle and Blackstone groups disavowing any use of it.
But several other big firms (including KKR, and Apollo Global Management) still seem pretty keen on it and none more so than Bain Capital, the private equity outfit founded by Romney in 1984. In fact, it was a cache of internal Bain Capital documents illustrating how Bain funds converted $1 billion in fees into investments, saving about $220 million in tax liabilities that first prompted Schneiderman to look into the process, the Times discovered. The documents also showed that Romney continues to receive profits from several funds implicated in this little tax switcheroo, which is why a lawyer for the recently crowned Republican presidential nominee released the following statement:
Investing fee income is a common, accepted and totally legal practice. However, Governor Romney's retirement agreement did not give the blind trust or him the right to do this, and I can confirm that neither he nor the trust has ever done this, whether before or after he retired from Bain Capital.
Private Equity Firms Subpoenaed Over Tax Process -- Daily Intel
They don't believe in ethics and morals any longer. Now, everything comes down to whether something is legal or illegal. If it's legal, it's fine with them.So he's investigating a practice that is entirely legal?
That is soooooooooooo liberal!
New York Attorney General Eric Schneiderman issued a round of subpoenas to five private equity firms back in July. He's investigating a rather common practice in the industry known as the "management fee waiver," whereby fees (which would normally be counted as income, taxable up to 35 percent) are converted instead into investments (later taxable at the lower 15 percent capital gains rate). While it's not exactly illegal, there has been a growing movement away from the practice, with leading firms such as the Carlyle and Blackstone groups disavowing any use of it.
But several other big firms (including KKR, and Apollo Global Management) still seem pretty keen on it — and none more so than Bain Capital, the private equity outfit founded by Romney in 1984. In fact, it was a cache of internal Bain Capital documents — illustrating how Bain funds converted $1 billion in fees into investments, saving about $220 million in tax liabilities — that first prompted Schneiderman to look into the process, the Times discovered. The documents also showed that Romney continues to receive profits from several funds implicated in this little tax switcheroo, which is why a lawyer for the recently crowned Republican presidential nominee released the following statement:
Investing fee income is a common, accepted and totally legal practice. However, Governor Romney's retirement agreement did not give the blind trust or him the right to do this, and I can confirm that neither he nor the trust has ever done this, whether before or after he retired from Bain Capital.
Private Equity Firms Subpoenaed Over Tax Process -- Daily Intel
I can see you're not a strong believer in "ethics". Course, we already knew that.
They don't believe in ethics and morals any longer. Now, everything comes down to whether something is legal or illegal. If it's legal, it's fine with them.So he's investigating a practice that is entirely legal?
That is soooooooooooo liberal!
I can see you're not a strong believer in "ethics". Course, we already knew that.
Funny...they didn't have that attitude when Clinton had his totally legal fling with Monica.
Your love of al Qaeda terrorists is noted.Obama executed a US citizen w/o trial, and you looked the other way.
Your disregard for the law and Constitution is also noted.
They don't believe in ethics and morals any longer. Now, everything comes down to whether something is legal or illegal. If it's legal, it's fine with them.I can see you're not a strong believer in "ethics". Course, we already knew that.
Funny...they didn't have that attitude when Clinton had his totally legal fling with Monica.
Why are management fee waivers unethical and immoral?
This issue following the typical pattern of 99% of all the posts here follow. Democrat (Republican) accuses something bad for political gain. Democrat (Republican) followers immediately support Democrat (Republican) politician's initiative even though Democrat (Republican) poster really has no idea what the issue is all about. Republican (Democrat) says Democrat (Republican) is wrong and accuses the Democrat (Republican) of politicizing the issue. Then, eventually, someone mentions Hitler. Interchange "liberal" and "conservative" if you wish.
So if anyone wishes to explain why I wrote above is unethical, immoral or illegal, please feel free to do so.
ALBANY, N.Y. New Yorks attorney general is investigating tax strategies of some of the nations largest private equity firms, including Bain Capital, founded by Republican presidential nominee Mitt Romney, an official familiar with the probe said Sunday.
Attorney General Eric Schneiderman is examining whether the firms have abused a tax strategy to avoid paying hundreds of millions of dollars in taxes, said the official, who spoke on the condition of anonymity because of the sensitivity of the probe. The practice involves converting some fees collected for managing accounts into fund investments, resulting in a lower tax rate.
Source: NY attorney general investigating private equity firms, including Romney-founded Bain - The Washington Post
ALBANY, N.Y. New Yorks attorney general is investigating tax strategies of some of the nations largest private equity firms, including Bain Capital, founded by Republican presidential nominee Mitt Romney, an official familiar with the probe said Sunday.
Attorney General Eric Schneiderman is examining whether the firms have abused a tax strategy to avoid paying hundreds of millions of dollars in taxes, said the official, who spoke on the condition of anonymity because of the sensitivity of the probe. The practice involves converting some fees collected for managing accounts into fund investments, resulting in a lower tax rate.
Source: NY attorney general investigating private equity firms, including Romney-founded Bain - The Washington Post
Taxes are something for the little people to pay, not the uber-wealthy. You ordinary folks are supposed to pay the taxes and defend the uber-wealthy elite when class warriors attempt to criticize them for not paying taxes. So stop complaining Chris, and do you job as an ordinary peasant. Say that our Lords such as Lord Romney and his Duchy of Bain are great people who give lots of money to charity and pay plenty of taxes.
ALBANY, N.Y. New Yorks attorney general is investigating tax strategies of some of the nations largest private equity firms, including Bain Capital, founded by Republican presidential nominee Mitt Romney, an official familiar with the probe said Sunday.
Attorney General Eric Schneiderman is examining whether the firms have abused a tax strategy to avoid paying hundreds of millions of dollars in taxes, said the official, who spoke on the condition of anonymity because of the sensitivity of the probe. The practice involves converting some fees collected for managing accounts into fund investments, resulting in a lower tax rate.
Source: NY attorney general investigating private equity firms, including Romney-founded Bain - The Washington Post
Taxes are something for the little people to pay, not the uber-wealthy. You ordinary folks are supposed to pay the taxes and defend the uber-wealthy elite when class warriors attempt to criticize them for not paying taxes. So stop complaining Chris, and do you job as an ordinary peasant. Say that our Lords such as Lord Romney and his Duchy of Bain are great people who give lots of money to charity and pay plenty of taxes.
I believe that you are correct. I think all of us little, middle people should get paid via 1099 income (no withholding) instead of W2 income. And we should all be very familiar with the Sch C (a very friendly form) of the 1040 tax forms. And when we are all done, there won't be anybody left paying taxes.
And the rethugs say; That will be so good.
Better yet. Lets just call all income a "management fee waiver" and just waive the taxes owed until some later point in time. When we feel like paying some tax.
And the rethugs say; better yet.
They don't believe in ethics and morals any longer. Now, everything comes down to whether something is legal or illegal. If it's legal, it's fine with them.
Funny...they didn't have that attitude when Clinton had his totally legal fling with Monica.
Why are management fee waivers unethical and immoral?
This issue following the typical pattern of 99% of all the posts here follow. Democrat (Republican) accuses something bad for political gain. Democrat (Republican) followers immediately support Democrat (Republican) politician's initiative even though Democrat (Republican) poster really has no idea what the issue is all about. Republican (Democrat) says Democrat (Republican) is wrong and accuses the Democrat (Republican) of politicizing the issue. Then, eventually, someone mentions Hitler. Interchange "liberal" and "conservative" if you wish.
So if anyone wishes to explain why I wrote above is unethical, immoral or illegal, please feel free to do so.
Toro, I know that you understand what a "management fee" is. And I know that you know what a "waiver" is.
So why don't you explain just what combining the two was designed to accomplish IF not a strategy to aviod paying legitimate income tax that was owed.
In other words, what did a management fee waiver allow the investors to accomplish that they couldn't have done without the waiver?
Slow down there, Speedy.End of story.
Next transparent political hatchet job, please.
WASHINGTON (Reuters) - U.S. tax authorities took no formal action after launching a probe five years ago of tax strategies used by private equity managers at firms such as Bain Capital LLC, leaving a legal gray area that is now being examined by New York's attorney general.
IRS warned, but did not act on tax strategy for private equity - chicagotribune.com
Let the investigations begin!
Let's not, and let's not waste taxpayers' money.
Firm one charges a 1% management fee and a 20% incentive carry.
Firm two charges a 0% management fee and a 21% incentive carry.
That's what's happening here when they talk about a "management fee waiver."
Please tell me what's illegal.
Slow down there, Speedy.
WASHINGTON (Reuters) - U.S. tax authorities took no formal action after launching a probe five years ago of tax strategies used by private equity managers at firms such as Bain Capital LLC, leaving a legal gray area that is now being examined by New York's attorney general.
IRS warned, but did not act on tax strategy for private equity - chicagotribune.com
Let the investigations begin!
Let's not, and let's not waste taxpayers' money.
Firm one charges a 1% management fee and a 20% incentive carry.
Firm two charges a 0% management fee and a 21% incentive carry.
That's what's happening here when they talk about a "management fee waiver."
Please tell me what's illegal.
I think the problem is you fail to see that something can be "legal" and still be morally wrong.
Hint. If you slap a struggling company with nine figures of new debt and pay yourself an eight figure "management fee" and eventually they go under because they couldn't bear the weight of your greed...
Yeah, that might be legal, but it is still wrong to do.
Let's not, and let's not waste taxpayers' money.
Firm one charges a 1% management fee and a 20% incentive carry.
Firm two charges a 0% management fee and a 21% incentive carry.
That's what's happening here when they talk about a "management fee waiver."
Please tell me what's illegal.
I think the problem is you fail to see that something can be "legal" and still be morally wrong.
Hint. If you slap a struggling company with nine figures of new debt and pay yourself an eight figure "management fee" and eventually they go under because they couldn't bear the weight of your greed...
Yeah, that might be legal, but it is still wrong to do.
You're talking to people who think their morals should be the law - so no, they can't see the difference between morally and legally wrong.
Slow down there, Speedy.
WASHINGTON (Reuters) - U.S. tax authorities took no formal action after launching a probe five years ago of tax strategies used by private equity managers at firms such as Bain Capital LLC, leaving a legal gray area that is now being examined by New York's attorney general.
IRS warned, but did not act on tax strategy for private equity - chicagotribune.com
Let the investigations begin!
Let's not, and let's not waste taxpayers' money.
Firm one charges a 1% management fee and a 20% incentive carry.
Firm two charges a 0% management fee and a 21% incentive carry.
That's what's happening here when they talk about a "management fee waiver."
Please tell me what's illegal.
I think the problem is you fail to see that something can be "legal" and still be morally wrong.
Hint. If you slap a struggling company with nine figures of new debt and pay yourself an eight figure "management fee" and eventually they go under because they couldn't bear the weight of your greed...
Yeah, that might be legal, but it is still wrong to do.
Slow down there, Speedy.End of story.
Next transparent political hatchet job, please.
WASHINGTON (Reuters) - U.S. tax authorities took no formal action after launching a probe five years ago of tax strategies used by private equity managers at firms such as Bain Capital LLC, leaving a legal gray area that is now being examined by New York's attorney general.
IRS warned, but did not act on tax strategy for private equity - chicagotribune.com
Let the investigations begin!
Let's not, and let's not waste taxpayers' money.
Firm one charges a 1% management fee and a 20% incentive carry.
Firm two charges a 0% management fee and a 21% incentive carry.
That's what's happening here when they talk about a "management fee waiver."
Please tell me what's illegal.
The New York probe cuts right to this issue. Its premised on the notion that when firms convert management fees into either carried or capital interest, theyre illegally evading state taxes. In the case of a capital interest conversion, the fees are simply not taxed at all. In the case of a carried interest transition, execs can defer taxation, and thus potentially reduce their tax burden.
ALBANY, N.Y. New Yorks attorney general is investigating tax strategies of some of the nations largest private equity firms, including Bain Capital, founded by Republican presidential nominee Mitt Romney, an official familiar with the probe said Sunday.
Attorney General Eric Schneiderman is examining whether the firms have abused a tax strategy to avoid paying hundreds of millions of dollars in taxes, said the official, who spoke on the condition of anonymity because of the sensitivity of the probe. The practice involves converting some fees collected for managing accounts into fund investments, resulting in a lower tax rate.
Source: NY attorney general investigating private equity firms, including Romney-founded Bain - The Washington Post
