Posts Tagged ‘2009 taxes

21
Sep
12

Two Theories as to Why Mitt Won’t Show us His 2009 Tax Returns

1.) In 2009, the Internal Revenue Service instituted an amnesty program for individuals maintaining overseas accounts for the purposes of avoiding taxes. We already know that Romney has accounts overseas, but if any of these were illegal, and he took advantage of the amnesty program with the IRS, that information would be contained in that return. This would be an admittance of felony tax evasion and would be a death-blow to his hopes of becoming President.

2.) Mitt has made it a point that while he still owned interest in Bain Capital, he was not actively participating in its recent politically untenable practice of buying companies, laying off the employees and chopping up the assets for a profit. When one receives money from a pass-through entity (like Bain) one must declare if the income was passive, or non-passive. (Passive meaning one was merely an investor and not actively involved in the day-to-day activities of the enterprise. Non-passive meaning the opposite.) Non-passive income is taxed at a lower rate than passive income (I know this because I’m the majority shareholder of an “S” corporation.) If Mitt declared his income from Bain as non-passive to take the lower tax rate, it would demonstrate that he was in fact actively involved in the company’s activities or that he lied about it. Either way, it is political suicide.

This is all speculation of course, but it wouldn’t be necessary if Romney simply released his 2009 returns.

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