So it may have been fraud – or close to fraud – after all.
Or at least questionable.
Following up on a general comment we made earlier we now are learning more details about the handling of taxes while Mr. Romney was at the helm at Bain Capital.
It gives a better understanding why Mr. Romney does not want to release his tax returns (besides of the top ten list published earlier). It would show the extent of the benefits he enjoyed – and still does – from the borderline tax strategies at Bain.
Now we do not pretend to understand much of it. We refer here just to the Huffington Post article.
However, we quote here : [This] is a particularly egregious example of how wealthy fund managers are able to avoid paying the same tax rates on their compensation as other Americans,” [Rep. Sandy Levin of Michigan] said. “This is a stark reminder of why Congress needs to act to close this loophole.”
Of course, Congress won’t. They all benefit from loopholes like this, and there is no incentive for them to close them. And if they would, a President Mitt Romney would probably veto it.
The article mentions that these manipulation won’t stand up in court, Bain would loose, and the Romneys would have to amend their tax returns.
Is this going to happen? We don’t know. Somebody would have to make a case of it and bring it to court. It may be too late though for that to have an impact on the current campaign – in legal terms.
The only chance now is to make a political point. It will be challenged, downplayed, outright disputed, but we can try.