Lee Sheppard, who's a contributing editor at the journal Tax Notes, wants to know how Romney amassed so much money in his tax-deferred retirement account.
"All we know is really that it's a big number, and we're a little bit baffled as to how it got so big," Sheppard says. ...NPR
With a retirement account estimated to be at "somewhere between $21 million and $102 million," Mitt Romney has some 'splainin to do. How'd that account get to be so magnificent from the yearly deposits of $30,000 a year that the law allows? USC law professor, Ed Kleinbard believes Romney "might have loaded up his retirement account with assets from his private equity firm, Bain Capital, and assigned artificially low values to those assets in order to get around the federal contribution limits."
If so, Romney would still have to pay taxes on the real value of the assets when they're withdrawn from the account. But in the meantime, the money can grow tax free. Tax Notes' Sheppard says that's an advantage most taxpayers don't have. ...NPR
Mitt Romney was also a director on the board of Marriott International, a corporation known to be tax shelter central.
"Marriott was always a tax shelter promoter's first call," he says. "Marriott was one of those companies that just loved to buy tax shelters."
Bloomberg reported this year on one Marriott tax shelter, known as "Son of BOSS." It involved creating paper losses to offset taxes on real income. The Internal Revenue Service challenged the shelter and Marriott lost in court. Judges called the shelter "fictitious" and a "scheme," and the company was forced to pay $29 million. Kleinbard notes that when the shelter was adopted, Romney was the chair of Marriott's audit committee. ...NPR
My, that was good luck for Mr. Romney, wasn't it?
Reminder: President Obama is a US citizen who is not a member of the Wall Street old-boys' network.
Remember the politician who wouldn't release his tax returns and it turned out he had nothing to hide? Me neither. ... Andy Borowitz, now at the New Yorker