Bain Capital being investigated for tax evasion

[beretta304]

There's an easy way to end this discussion. Come back and let us know when they find something and Bain is prosecuted for it.

 

[bripat9643]

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.

What's "unethical" about following the law to the letter?

You're confusing libturd prejudices with ethics.

 

[Full-Auto]

ALBANY, N.Y. — New York’s attorney general is investigating tax strategies of some of the nation’s 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

The butt hurt brigade, feeling the sting of the gravy train ending.......

Hey maybe they can get the former governor to assist, that is if he is finished with the hookers.....


I have always said it is quite easy to get the democrats to act petty. It happens here everyday..........

 

[naturegirl]

I'm not ready to read three pages of drivel in another fail thread by Chris, Walker is going to be recalled, Walker is going to jail. Then there's the DOJ gonna put Sheriff Joe in jail, now Bain is being investigated.

Another typical Chris thread that has no merit.

 

[Toro]

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.

Aren't you misrepresenting this just a tad?

The New York probe cuts right to this issue. It’s premised on the notion that when firms convert management fees into either carried or capital interest, they’re 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.

New York AG Investigation Raises Questions About Key Romney Tax Practice | TPMDC

If the income is already earned, and they convert it from management fees to carried interest, that's an issue. If it is at the beginning of the contract whereby a portion of the fee is waived in favour of a capital interest, as I've always seen it done, it is not an issue.

 

[kaz]

ALBANY, N.Y. — New York’s attorney general is investigating tax strategies of some of the nation’s largest private equity firms, including Bain Capital, founded by Republican presidential nominee Mitt Romney, an official familiar with the probe said Sunday.

Sounds like Bain was doing their job, if the government's happy, then they aren't being aggressive enough with their tax strategies.

Now on the other hand Clinton deducting $50 per pair of used underwear, Rangle not paying taxes on foreign income, Dashle not paying taxes on perks, Jefferson stuffing bribe money in his freezer and not paying taxes on it are outright tax fraud. Funny, no threads from you on that. A standard not applied to yourself isn't a standard, Chris, it's just a Partisan snipe.

 

[Synthaholic]

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.

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.

You seem to believe that any gaming of the system is perfectly fine, as long as your lawyers can cast doubt on the illegality of it.

 

[Ravi]

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.

Aren't you misrepresenting this just a tad?

The New York probe cuts right to this issue. It’s premised on the notion that when firms convert management fees into either carried or capital interest, they’re 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.

New York AG Investigation Raises Questions About Key Romney Tax Practice | TPMDC

If the income is already earned, and they convert it from management fees to carried interest, that's an issue. If it is at the beginning of the contract whereby a portion of the fee is waived in favour of a capital interest, as I've always seen it done, it is not an issue.

I believe discovering which is true is why NY is investigating.

 

[kaz]

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.

You seem to believe that any gaming of the system is perfectly fine, as long as your lawyers can cast doubt on the illegality of it.

You seem to believe that any amount of tax fraud is perfectly fine, as long as your side are the ones doing the cheating.

Personally I support tax evasion. I don't do it because I follow Baretta's advice. But high taxes are your issue and you should just be laughed at as long as you refuse to hold Democrats to your own standard. I'm a libertarian, I want to starve the dragon.

 

[Papageorgio]

When did Romney last work for Bain? 2002?

The investigation can only go so far back and Romney is not accountable for what is being investigated. Another stupid story, that means absolutely nothing about voting for or against Romney.

 

[Synthaholic]

Your love of al Qaeda terrorists is noted.

Your disregard for the law and Constitution is also noted.

The only way we know if the man and his 16 year old son was guilty was because Obama told us so. I am sure the CIA never got it wrong before.

And that's good enough for me. There are plenty of people in Washington who regularly leak info. If President Obama (praise be unto Him!) was lying about this al Qaeda leader, it would have come out.

If Republicans weren't such pussies, we would be able to capture and try terrorists in court. Wingnuts are too skeered, so killing them where they are is the only reasonable option.

 

[Toro]

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.

You seem to believe that any gaming of the system is perfectly fine, as long as your lawyers can cast doubt on the illegality of it.

My lawyers? It's the AG who said it wasn't illegal. It is he who is casting doubt, not the other way around.

 

[Toro]

Aren't you misrepresenting this just a tad?



New York AG Investigation Raises Questions About Key Romney Tax Practice | TPMDC

If the income is already earned, and they convert it from management fees to carried interest, that's an issue. If it is at the beginning of the contract whereby a portion of the fee is waived in favour of a capital interest, as I've always seen it done, it is not an issue.

I believe discovering which is true is why NY is investigating.

I believe it's political.

 

[kwc57]

ALBANY, N.Y. — New York’s attorney general is investigating tax strategies of some of the nation’s 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

What a waste of taxpayer money. Couldn't Schneiderman cut out the middle man and just suck Obama's dick directly?

 

[Immanuel]

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.

You mean like abortion?

Immie

 

[Ravi]

If the income is already earned, and they convert it from management fees to carried interest, that's an issue. If it is at the beginning of the contract whereby a portion of the fee is waived in favour of a capital interest, as I've always seen it done, it is not an issue.

I believe discovering which is true is why NY is investigating.

I believe it's political.

Maybe. But it is still a valid investigation.

 

[Papageorgio]

I believe discovering which is true is why NY is investigating.

I believe it's political.

Maybe. But it is still a valid investigation.

To bad for the Dem it won't touch Romney. The will just continue to cry.

 

[LeftofLeft]

ALBANY, N.Y. — New York’s attorney general is investigating tax strategies of some of the nation’s 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

Bring it on.

 

[thereisnospoon]

ALBANY, N.Y. — New York’s attorney general is investigating tax strategies of some of the nation’s 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

Yeah and? If the tax law permits this, it is legal.
This is typical New York. A broke ass welfare state with a dysfunctional government full of on the take politicians. They cannot think of any more new ways to extract money out of the residents, so Albany decided to sick the AG on any company within reach.
This is going to result in nothing. Or it will chase even more business from the Empire State.
Either way, this will be viewed as a political witch hunt.

 

[thereisnospoon]

Romney's Medicare fraud

In 1989, Romney led Bain Capital's purchase of Damon Corp., a medical testing company, and took a seat on the Board of Directors to better manage it. During Romney's four years, Bain tripled its investment, and Romney personally made $473,000 -- while Damon plumped its profits with Medicare fraud (running thousands of medical tests doctors didn't want, and billing Medicare for them). The company pled guilty to crimes committed during his tenure and paid a record fine of $119 million. Company President Joseph Isola pleaded no contest to fraud, and a vice president was also convicted.

Romney claims he "uncovered" the fraudulent claims and "took corrective action," but court records show that he did not notify prosecutors or stop the fraudulent billing. He just asked company lawyers what changes they could make to avoid prosecution, after the feds' LABSCAM prosecution targeted a different medical testing firm. The cheating continued, prosecutors say, until the day Bain sold the company to Corning. Furthermore, Damon Corp. was required to list in various SEC filings any significant legal risks it faced. Romney made no mention of the fraud he "uncovered," even though it led to a $119 million fine, the largest in history. Damon Corp. is another Bain acquisition that later went bankrupt, killing over a thousand jobs -- but not before Bain made $7.4 million in profit.

Mitt Romney's Skeleton Closet -- political scandals, quotes and character

I think "Barb" wants to date you....