Friday, September 28, 2012

Romey Got Tax Break From OutSourced Company


Aka ruin, or what remains when everything that makes something functional and valuable is gone, like most of the good wage jobs in the US have gone elsewhere thanks to Bain Capital and other businesses like that.

Photo used via Creative Commons License Attribution (CC by 2.0). Thanks to Amio Cjander at Flickr who has no connection to this blog or blogger

Excerpt from first report linked below:
 Romney transferred $701,703 worth of Sensata stock to the Tyler Charitable Foundation, a 501(c)3 tax-exempt nonprofit controlled by Romney. The gift is listed on page 323 of the pdf, on form 8283 (below).
Therefore he got a substantial deduction off his taxes from that transfer.
Moving the stock to his nonprofit brings Romney twin benefits. First, he gets to deduct the full value of the stock. At a 35 percent tax rate, that's nearly a $250,000 benefit. At 15 percent, it's just over $100,000.
Second, Romney is able to avoid paying capital gains taxes on the stock price increase
I didn't quite get the whole idea of a charitable trust besides the tax break.  Or, in other words why the government allows this.

I know that some charitable trusts actually do pass money on to well meaning charities.  I hear non-profits saying they received money from the Pew Charitable Trust, but if you are just going to hang on to the moola in your trust, what's the use to society that gives you a tax break?  and what's the benefit to you that makes you put it in a charitable trust instead just donating the money off to some charity or another.

Maybe you can pass it on to your kids after you die (at which time there is no tax), but that would negate the whole charitable purpose.  Maybe there are two good reasons for it.  You can take a deduction now, but decide later which charity will need it; use it if you ever have a financial disaster hit your family, withdrawing it at a lower tax rate?  Or use the Steve Jobs/ Mark Zuckerberg method of borrowing against it and thereby not paying taxes on what you need to live on (and actually working up tax credits against any taxes you may owe because you'd possibly pay interest on the loans).

But in the end the truth is that we used to call companies like Bain and people like Romney, "Corporate Raiders".  It used to be a bad thing.  Now it's just a fact of life and we are supposed to nearly worship such people as they ship our jobs overseas.

I guess that's because our mainstream media (both news and entertainment) is controlled by the same mufti-millionaires and billionaires that do this to us.  Its a wonderful propaganda system.

See HP  Mitt Romney Gets Tax Break Off Firm Sending Jobs To China 

Sensata is the automobile sensor company in Freeport, IL, now owned by Bain of which  Mitt Romney is the overwhelmingly largest investor that is being taken overseas, and who's long term employees have to train the Chinese supervisors who will be training the lower level Chinese workers, and who them how their jobs are done.

I'd be tempted to make that training just faulty enough to cause problems in the new Chinese plant, just for all the people who've lost their jobs to date to this system, and for all of them who will lose their jobs in the future.