Comments on: Tax advice for those who want to be like Mitt http://blogs.reuters.com/david-cay-johnston/2012/01/24/tax-advice-for-those-who-want-to-be-like-mitt/ Sat, 23 Mar 2013 13:49:31 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: LVTfan http://blogs.reuters.com/david-cay-johnston/2012/01/24/tax-advice-for-those-who-want-to-be-like-mitt/#comment-1010 Sun, 29 Jan 2012 18:08:00 +0000 http://blogs.reuters.com/david-cay-johnston/?p=271#comment-1010 When Mr. Romney must start taking minimum distributions from his IRAs, perhaps we’ll see how much has been stashed in those tax-favored vehicles, over and above the taxable capital gains of $21 million.

Is it the actions of others which caused him to recognize these capital gains, or something over which he has control?

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By: DavidCayJ http://blogs.reuters.com/david-cay-johnston/2012/01/24/tax-advice-for-those-who-want-to-be-like-mitt/#comment-1000 Thu, 26 Jan 2012 13:07:39 +0000 http://blogs.reuters.com/david-cay-johnston/?p=271#comment-1000 @ jaham,

and what of all the taxing of those down the income ladder to give to the rich which I have documented in this column and in my book Free Lunch? There are whole industries who derive all of their profits taxpayer gifts and specific companies I have identified.

Most of what you consider redistribution is actually just timing differences — all newborns get subsidies (education, for example) and so do old people (SS if they contributed to the system and Medicare if they can afford the co-pays) while in between they work and pay taxes to fund these systems to those born before and after them. The issue is whether the pricing is correct, but the theory of redistribution for these common goods (education, healthcare) is flawed as they are paid for by those who benefit.

@Carl and @jambrytay, when you give away cash or property to a public charity you do not have it; your economic resources are diminished. No one is better off for having made the gift except for gifts of appreciated property if viewed on the basis of the difference between the cost basis of the gift and its appreciate value offsetting ordinary income. A charitable remainder trust, for example, is less valuable to a family than a commercial trust because of the cat of the gift.

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By: jambrytay http://blogs.reuters.com/david-cay-johnston/2012/01/24/tax-advice-for-those-who-want-to-be-like-mitt/#comment-997 Wed, 25 Jan 2012 18:25:54 +0000 http://blogs.reuters.com/david-cay-johnston/?p=271#comment-997 CarlOmunificent-

Agreed. That loser gave $7M to charity in 2010 to lower his tax bill. What a loophole exploiting louse!

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By: WD7179 http://blogs.reuters.com/david-cay-johnston/2012/01/24/tax-advice-for-those-who-want-to-be-like-mitt/#comment-996 Wed, 25 Jan 2012 17:46:48 +0000 http://blogs.reuters.com/david-cay-johnston/?p=271#comment-996 Well all I can say is when these folks like Romney tell me that they aren’t breaking any laws it makes me sick… first, the laws are made for them to evade jail, and they make sure they are that way by bribing everyone they can find that has any association with that law. Secondly, and much more important, that justification surely doesn’t square with the spirit of being a good American and Christian. I liken it to being on the battle field, and leaving your wounded buddy behind… nothing says you have to go through the firing line again to pull him to safety, but your morals, and commitment to country… by the way two important things this country was built on…

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By: jaham http://blogs.reuters.com/david-cay-johnston/2012/01/24/tax-advice-for-those-who-want-to-be-like-mitt/#comment-994 Wed, 25 Jan 2012 14:48:24 +0000 http://blogs.reuters.com/david-cay-johnston/?p=271#comment-994 Disagreed – any hard working individual could start a small business and accomplish each of these items.

Further, when you state that “managers of investment partnerships like the one Romney ran to enjoy tax-saving strategies not available to other taxpayers” you make it seem that only a Bain capital type firm gets these tax breaks which is incredibly misleading (I presume this is your intention based on the general sentiment of your previous editorials). In fact, you could start a partnership and go into just about any type of business and have these benefits available to you.

The problem is that the American people are largely financially illiterate, which is exemplified by one of your closing lines “offshore investments, which are legal but not widely understood by Americans who are misled to believe by movies and films that they must be improper.”

Americans miss many tax breaks they could take, they don’t start their own companies and take the entrepreneurial route, and they don’t know enough about business/politics/economics to understand that the Leftist model of taxing the rich and giving handouts to the poor is doomed for failure.

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By: TerryOtt http://blogs.reuters.com/david-cay-johnston/2012/01/24/tax-advice-for-those-who-want-to-be-like-mitt/#comment-990 Wed, 25 Jan 2012 07:34:05 +0000 http://blogs.reuters.com/david-cay-johnston/?p=271#comment-990 PseudoTurtle: And yet we keep on electing rich (or soon to BE rich) lawyers to make the rules. Then they make them in such a way that THEY get to trade on inside information they get in the course of the “public servant” charade they put on as campaigners.

“We” (the people) have a variant of Battered Wife Syndrome. It’s like we’re saying, “Go on back to Washington for your umpteenth term and beat me up again, it hurts so good.”

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By: rocque http://blogs.reuters.com/david-cay-johnston/2012/01/24/tax-advice-for-those-who-want-to-be-like-mitt/#comment-989 Wed, 25 Jan 2012 02:45:29 +0000 http://blogs.reuters.com/david-cay-johnston/?p=271#comment-989 PseudoTurtle will remember the time (not so long ago) when we had true accelerated depreciation (not ACRS), income averaging, ITC (Investment Tax Credit), and many other opportunities to lower earners to have some control over their taxes. The tax “reform” acts of the late 1980’s were a great reason why I abandoned tax accounting as a profession. I would think most who are familiar with the past tax code would agree that simplifying the tax code did not mean making it fairer.

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By: Gordon2352 http://blogs.reuters.com/david-cay-johnston/2012/01/24/tax-advice-for-those-who-want-to-be-like-mitt/#comment-987 Wed, 25 Jan 2012 00:23:15 +0000 http://blogs.reuters.com/david-cay-johnston/?p=271#comment-987 Of course, when all the rules are stacked in your favor, you have the option of doing all of these things.

For those who are not wealthy, their options are extremely limited and not likely to be able to accomplish a single one of them.

That’s what is wrong with this country, and it is prevailing attitudes characterized by this article that will bring this country down hard.

PseudoTurtle
CPA/MBA

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By: NeoDemo http://blogs.reuters.com/david-cay-johnston/2012/01/24/tax-advice-for-those-who-want-to-be-like-mitt/#comment-982 Tue, 24 Jan 2012 20:45:35 +0000 http://blogs.reuters.com/david-cay-johnston/?p=271#comment-982 I was furious when seeing Romney’s returns. I don’t care about the amount of money, but anyone who runs for office in the USA and who has accounts in the Cayman Islands and secret Swiss bank accounts should be automatically disqualified from running for office. Why would any true-blooded American have foreign accounts? Secrecy and tax avoidance, which are basically the same thing. IT IS ESSENTIAL TO SEE HIS TAX RETURNS FROM 1994 until now. I want to see HOW HE RAN HIS BUSINESSES and investments at Bain Capital. It will not only shed light on Romney, but also how the private equity process works. Those were Romney’s formative years and he will be using those skills in Public Office. He needs to COME CLEAN with those records or give up NOW!

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