Members of the UK Parliament are going to introduce changes in the Cayman tax law that will eliminate the tax avoidance schemes that ROmney has been using. Bain has 138 funds in Cayman banks, and claims that the tax implications are the same as if they were held in US banks, but has no explanation of why they are not in US banks. Romney has over $100million in his IRA which is mostly in those Cayman accounts.
http://blogs.wsj.com/washwire/...elping-his-tax-bill/
tax experts said that had Mr. Romney’s IRA invested in Bain funds in the U.S., he would likely have been forced to pay an obscure levy called the “unrelated business income tax,” also known as UBIT.
This tax, assessed for individuals at a maximum 35% rate, is meant to discourage tax-exempt entities such as an IRA or college endowment fund from unfairly competing with for-profit, taxpaying entities by operating a business without paying taxes on it. Investing in a partnership such as a Bain Capital fund that uses debt to buy companies would trigger the tax, experts said.
For this reason, the experts said, it is very common for private-equity funds such as Bain to set up vehicles in offs**** locales such as the Cayman Islands. Such a structure allows American tax-exempt entities, including IRAs, to avoid paying UBIT.
Getingrinch should start writing his nomination acceptance speech.
IT'S GOOD TO BE A 1%'er!!!!!
