Mitt Romney's holdings in the Cayman Islands have generated lots of interest in investment funds that are managed from the U.S. but incorporated in foreign jurisdictions. The real winners in these arrangements are U.S. tax-exempt entities, not Mitt Romney and the investors themselves.
Mitt Romney probably manages to pay a 15 percent tax rate by treating his generous compensation from Bain Capital as capital gains. It's a loophole that unfairly benefits high earning private-equity managers.
L.A. Mayor Antonio Villaraigosa said the news that millionaire Mitt Romney has been paying federal taxes at close to a 15 percent rate is going to spur talk about fixing the US tax code.
Romney's 15 percent tax rate underscores the fact that even the preferential rate on capital gains and dividend income, is a big tax expenditure–a big way we “spend” money via the tax code.
Supply side economic practice deepens the deficit and worsens inequality
Thanks to the Bain Capital controversy and compensation details from the Carlyle group, the battle over how to tax the compensation of private equity managers may be on again
With more than 13 million Americans out of work and wage increases so modest they’re failing to keep up with inflation, voters have put the economy and jobs at the top of their checklist of presidential issues. The Republican candidates all share the same broad approach: Spur private-sector confidence and job creation through permanent tax cuts, reduced federal deficits, and lighter regulatory burdens on businesses. In the same vein, they generally call for efforts to boost trade, encourage domestic oil and gas production, and limit the power of organized labor. But who has the best economic plan?