FaithWorld

In Bain deals, Mitt Romney made large stock donations to Mormon church

By Reuters Staff
January 20, 2012

(U.S. Republican presidential candidate and former Massachusetts Governor Mitt Romney speaks to supporters during a campaign rally in Gilbert, South Carolina, January 20, 2012. REUTERS/Jim Young)

Using a practice that made him eligible for large tax deductions, Mitt Romney gave the Mormon church substantial stock holdings that he obtained through his private equity firm, according to documents filed with the government and to Romney associates.

The tactic used by Romney to help meet his Mormon obligation of “tithing” – in which members donate 10 percent of their income to the church – is a common way for wealthy Americans to make large donations to charities, tax specialists say.

But against the backdrop of a Republican presidential campaign in which Romney is being pressured to reveal his tax returns and further details on his vast wealth, the donations shed light on the tax strategies of Romney and others at Bain Capital, the private equity firm he co-founded in 1984.

Romney, a former Massachusetts governor, is the early frontrunner in the state-by-state contest to pick a Republican candidate to run against Democrat Barack Obama in the November presidential election.

Filings with the U.S. Securities and Exchange Commission indicate that Romney and others at Bain have given “appreciated stock” to the church and various charities, which gives the donors potentially generous tax benefits.

The SEC records, which cover a period from 1997 to 2008, reveal several donations worth millions of dollars of stock in Bain deals to the Church of Jesus Christ of Latter-day Saints.

The records do not say precisely how much was donated by Romney. He left Bain in 1999 but continued to have ties to some of the firm’s deals because part of his estimated $270 million fortune is invested in funds linked to Bain.

His staff acknowledges that Romney, who has been active in the Mormon Church, has donated stock from Bain deals to the church but would not say how much.

Read the full story by Mark Hosenball and David Henry here.
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Comments
5 comments so far | RSS Comments RSS

Are you serious?!? We are criticizing people now because they give money away? To a church that spends millions of dollars helping suffering people both nationally and internationally.

I ask is this what America has become?

Posted by speedyss | Report as abusive
 

So, let me see if I have this right. By donating inflated stock worth million$ to the Mormon Church each year, Willard Mitt Romney was able to pay his 10% tithing without paying a 15% capital gain tax on the assets. The Mormons would then immediately sell the stock without taxation since they’re exempt. Net result: no tax revenue to the government, Romney deducts the donation at full value, and he pockets the difference, effectively getting a 5% kickback on his tithing. Sweet. Wall Street Willard in the White House? No thanks.

Posted by sfcanative | Report as abusive
 

Romney Got $10 Million Federal Bailout At Bain

Mitt Romney received a $10 million bailout from the Federal Deposit Insurance Corp. in 1991, an event that runs contrary to the multimillionaire’s current anti-bailout position.

Documents obtained by the Boston Globe show that the FDIC negotiated a $10 million forgiveness with Bain & Co. while Romney was chairman and CEO in 1993.

The negotiations were part of a deal designed to reduce the debt load at the company, which was near bankruptcy. The FDIC had been forced to seize Bank of New England, who was a creditor of Bain’s.

Mitt Romney company profited as steel mill it owned closed, government bailed out pension plan

“What’s more, a federal government insurance agency had to pony up $44-million to bail out the company’s underfunded pension plan.”

Romney still receives a generous salary from Bain taxed at the low 15% capital gains rate, the rest of his wealth is hidden in blind trusts to avoid paying taxes.

If Romney really cared about this country he’d start paying taxes like the rest of us.

Boehner, Cantor, Norquist and the rest of the Norquist tax pledge signers are protecting the wealthy like Romney from ‘normal’ taxation.

Also, Romney would pull the plug on your life support system if he thought it would make him a dollar, he has NO empathy for his fellow human beings.

Posted by Bucky_2 | Report as abusive
 

‘LARGE DONATION TO THE MORMON CHURCH”. Almost sounds like this is a bad thing. It is called TITHING, one tenth. I think this is great. Did you notice that Newt’s taxes showed he gave 3% to charity? Romney’s returns will probably show 12 to 15%. The government should not take care of the poor, we should. Read what the Mormon church does with its money, GIVES ALOT TO OTHERS, not of the Mormon faith, they help the poor all overe the World. Go figure!!

Posted by BALBOA | Report as abusive
 

Thanks for sharing the details. Keep posting.

Posted by stockdonations | Report as abusive
 

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