"... good reason to be skeptical" of Etch a Sketch's taxes

[Luddly Neddite]

Tax Expert Calvin Johnson 'Skeptical' Of Mitt Romney's Taxes

A respected tax attorney and deficit hawk wrote a letter to the editor of Tax Notes on Monday saying that, "There is good reason to be skeptical" of Mitt Romney's claim to have paid all the taxes he legally owes.

The letter, by University of Texas Law School Professor Calvin Johnson, focuses on two trusts Romney has set up: one for his children, which is worth over $100 million, and an $87 million retirement trust. These trusts have grown at an enormous rate -- Johnson notes that they have been more than 10 times as profitable as Warren Buffett's investments over the same time frame. Johnson writes that Romney may have played fast and loose with the law by undervaluing Bain Capital assets that were contributed to the trusts. By undervaluing the assets, Romney could avoid paying gift taxes.

Crooked and corrupt SOB. What is he hiding and WHY is he hiding it?

Because, as he has said, if we knew everything, we wouldn't vote for him.

 

[Sarah G]

Tax Expert Calvin Johnson 'Skeptical' Of Mitt Romney's Taxes

A respected tax attorney and deficit hawk wrote a letter to the editor of Tax Notes on Monday saying that, "There is good reason to be skeptical" of Mitt Romney's claim to have paid all the taxes he legally owes.

The letter, by University of Texas Law School Professor Calvin Johnson, focuses on two trusts Romney has set up: one for his children, which is worth over $100 million, and an $87 million retirement trust. These trusts have grown at an enormous rate -- Johnson notes that they have been more than 10 times as profitable as Warren Buffett's investments over the same time frame. Johnson writes that Romney may have played fast and loose with the law by undervaluing Bain Capital assets that were contributed to the trusts. By undervaluing the assets, Romney could avoid paying gift taxes.

Crooked and corrupt SOB. What is he hiding and WHY is he hiding it?

Because, as he has said, if we knew everything, we wouldn't vote for him.

We'll never know. Republicans don't care enough to look into it and he certainly isn't going to incriminate himself. He should self deport to where he's hiding all of his cash.

 

[Stephanie]

oh well, like pelosi said about ObamaCare, you will have to pass it to see what's in it..

 

[jwoodie]

oh well, like pelosi said about ObamaCare, you will have to pass it to see what's in it..

Actually, Romney's position on taxes reflects an understanding of the legislative process that most people don't grasp. He wants to replace nonproductive deductions with a productive reduction in the tax rate. Since any tax changes must be approved by Congress, he would consult with legislators to arrive at a consensus as to which deductions would be limited or eliminated in conjunction with a larger standard deduction.

The point is that it is economically unproductive for people to make financial decisions based primarily on tax consequences (e.g., tax shelters) rather than the underlying assessment of economic value.