Romney/Bain

[knapplc]

The Secret Behind Romney’s Magical IRA

 

The most mysterious of the unexplained mysteries about Mitt Romney’s considerable wealth is how he was able to amass between $21 million and $102 million in his individual retirement account during the 15 years he was at Bain Capital LLC.

 

How did he do it, given the relatively small amounts that the law permits to be contributed to such a plan on an annual basis? Romney has not explained this conundrum, and seeing as he wants to become president, he would be wise to start talking -- if for no other reason than there might be many Americans who would like to emulate what he did.

 

...

 

For instance, after Bain bought Domino’s Pizza in 1998 for $1.1 billion, Bain partners (and the limited partners who went in on the deal) were able to get a slice of the equity of the company. Given the high leverage put into the pizza maker to finance its purchase, it’s a safe bet there was very little equity value at the start, meaning that shares with little book value could be contributed to the IRA.

 

If Romney put $30,000 worth of Domino’s Pizza stock into his 1998 SEP-IRA, it is conceivable that it would be worth many times that amount when Domino’s went public in 2004. If Romney did the same thing over and over again during the 15 years he was at Bain doing leveraged buyouts, it is conceivable that the $450,000 would increase greatly in value.

[carlfense]

I wonder why Romney doesn't get out ahead of this stuff? His campaign must have known that it was coming.

 

Same with his tax returns. When he has been running for office for the better part of two decades . . . wouldn't you tell your accountants to err on the side of caution?

[JJ Husker]

Serious question ableit a little off topic- How did Obama make all his dough? Has not the bulk of his income been at the expense of various tax paying entities? I know his wife was paid some big bucks on some hospital board back in Illinois (because it helped garner Illinois state senator Obama's favor). If we're going to dissect every detail of Romney's private sector career, doesn't it strike anyone as being somewhat odd that Barack basically gets a pass on how he acquired his wealth? What's better; somebody who operates succesfully, ruthlessly at times, within a capitalistic system or somebody who leeches off the other side of it?

[Moiraine]

Serious question ableit a little off topic- How did Obama make all his dough? Has not the bulk of his income been at the expense of various tax paying entities? I know his wife was paid some big bucks on some hospital board back in Illinois (because it helped garner Illinois state senator Obama's favor). If we're going to dissect every detail of Romney's private sector career, doesn't it strike anyone as being somewhat odd that Barack basically gets a pass on how he acquired his wealth? What's better; somebody who operates succesfully, ruthlessly at times, within a capitalistic system or somebody who leeches off the other side of it?

 

Maybe the reason people don't focus on his money as much is because he's one of the poorer presidents we've had. I just looked it up to check and his net worth is $5 million (or was when he was elected). He made $1.2 million in 2005 from book royalties. I've actually known for a long time that a big portion of his money came from book sales, so I don't see that he's getting a pass. I don't think I went out and actively searched for it. He's the first president since Truman to have $5 million or less when elected.

 

It makes sense that Romney is more analysed, since his net worth is estimated at $190 million+. If elected, he'll be considered the 3rd richest president in history. In comparison, Bush had $20 million when he was elected and Clinton had $35 million (edit: just looked more in depth and that's post Presidency. Can't find how much he had when elected).

 

 

 

I wonder why Romney doesn't get out ahead of this stuff? His campaign must have known that it was coming.

 

It might make Obama look worse if the heat is ratcheted up and then it turns out that there's nothing shady at all. If Romney knows everything is legal then I don't know that it hurts to wait. There's plenty of time before the election.

[lo country]

I wonder why Romney doesn't get out ahead of this stuff? His campaign must have known that it was coming.

 

Same with his tax returns. When he has been running for office for the better part of two decades . . . wouldn't you tell your accountants to err on the side of caution?

 

If he has nothing to hide, there is no reason to spend money to refute the charges/accusations. Conservatives are going Romney regardless. Same with Libs and Obama. The prize is the Independents. People have extremely short memories in this country. It is July. The election is in approximately 3 months. Hit folks with the negative add campaigns closer in. Smart on his part. Let the Dem machine spend millions of dollars and when it is time, show the facts and use the "while Rome burned, Nero played the fiddle" meaning while the economy was tanking, Obama was making up lies to distract from the true issues at hand.

 

If he is hiding something, he is probably either developing a strategy or hoping it will all "go away". Wait to long to "come clean" and you give the Dems more ammo ie he lies and Americans won't be as forgiving closer to the polls.

 

Either way, it will be interesting. Hard to imagine a "career" politician would be that naive and have something like that in his closet. To date, IMO, Romney has and continues to run an ineffectual campaign. He needs to bring in some heavies to run it. I previously mentioned Rove and Dick Morris. They can run a campaign.

[bhamHusker]

Serious question ableit a little off topic- How did Obama make all his dough? Has not the bulk of his income been at the expense of various tax paying entities? I know his wife was paid some big bucks on some hospital board back in Illinois (because it helped garner Illinois state senator Obama's favor). If we're going to dissect every detail of Romney's private sector career, doesn't it strike anyone as being somewhat odd that Barack basically gets a pass on how he acquired his wealth? What's better; somebody who operates succesfully, ruthlessly at times, within a capitalistic system or somebody who leeches off the other side of it?

 

The majority of his wealth has come from book royalties. Prior to becoming a U.S. Senator, all of his income was from private sector employers (a private university and a private law firm) or from various non-profit (non-public/non-governmental) organizations. His total income for 7 years as a state senator, 4 years as a U.S. Senator and 3 years as POTUS (roughly 2.25 million) falls short of his income from his books. Leeching?

 

Also, Mrs. Obama wasn't on the board of UChicago Hospital (let me point out, yet again, that this is a private organization). She was the VP of External Affairs, and earned around $250k in that capacity. She stepped down from that position after her husband became the official Democratic Party nominee in '08.

[JJ Husker]

Serious question ableit a little off topic- How did Obama make all his dough? Has not the bulk of his income been at the expense of various tax paying entities? I know his wife was paid some big bucks on some hospital board back in Illinois (because it helped garner Illinois state senator Obama's favor). If we're going to dissect every detail of Romney's private sector career, doesn't it strike anyone as being somewhat odd that Barack basically gets a pass on how he acquired his wealth? What's better; somebody who operates succesfully, ruthlessly at times, within a capitalistic system or somebody who leeches off the other side of it?

 

The majority of his wealth has come from book royalties. Prior to becoming a U.S. Senator, all of his income was from private sector employers (a private university and a private law firm) or from various non-profit (non-public/non-governmental) organizations. His total income for 7 years as a state senator, 4 years as a U.S. Senator and 3 years as POTUS (roughly 2.25 million) falls short of his income from his books. Leeching?

 

Also, Mrs. Obama wasn't on the board of UChicago Hospital (let me point out, yet again, that this is a private organization). She was the VP of External Affairs, and earned around $250k in that capacity. She stepped down from that position after her husband became the official Democratic Party nominee in '08.

You are correct about the VP of external affairs. I had forgotten exactly what it was called. If I recall correctly, it was a position they created for her. I suppose it is up for speculation as to whether or not it was for any reason other than access to Barack's favor.

 

Community organizer, 7 yrs state senator, 4 yrs US senator, and 3 yrs POTUS (campaigning for the majority of the time while US senator and POTUS)....Yeah, I'll call that leeching on the public trough.

[bhamHusker]

His work as a community organizer was as an employee of a Chicago-based, church-sponsored non-profit that focused on literacy and job training. Again, that's not leeching off the public trough. Your claim was that most of his income has come from his time as a public servant, which would only include the last 15 years, and nearly half of that was in a part time capacity. Your claim is false because most of his (or Michelle Obama's) income has not come from public sources, and rather than admit that you seem to be moving the goal posts. I assume that you feel the same way about Ronald Reagan, GHW Bush, or GW Bush sucking on the government teat, all of whom had long governmental careers and enjoy (enjoyed in the case of Reagan) fat government pensions?

 

Regardless, all of this is an irrelevant comparison to Romney. Obama hasn't been secretive about his finances. Romney has, and that's probably because he's hiding something that's damaging to his campaign.

[Mavric]

The idea is to encourage investment. My question would be . . . what else are you going to do with your $10 million in the bank? Put it in a savings account that earns 1%? Ha.

Because most congressmen and senators have a lot of money invested. Ever see a poor congressman or senator? Ever see one spend a decade in office and leave worse off financially than when he started? Same reason why members of Congress could use inside information from committees they sat on for investment purposes and in anyone else did it, it was a crime.

I'm sure both are at least partially true - or perhaps more precisely, part of the reason. But another part of the reason is that money has already been taxed once, and at (currently) the highest corporate rate in world.

[sd'sker]

here is something to think about: in the last week romney has asked you to believe 1) bain paid him 6 figures to do nothing 2) naacp folks want free stuff.

[carlfense]

I wonder why Romney doesn't get out ahead of this stuff? His campaign must have known that it was coming.

 

It might make Obama look worse if the heat is ratcheted up and then it turns out that there's nothing shady at all. If Romney knows everything is legal then I don't know that it hurts to wait. There's plenty of time before the election.

I've heard that theory . . . sort of a spin on the Obama birther strategy.

 

I don't know that I buy it but it's possible. What does Romney gain from it exactly?

 

Even if there is nothing shady in his returns . . . questioning why he wouldn't release them looks far less conspiratorial than demanding long form birth certificates and elementary school records.

[carlfense]

here is something to think about: in the last week romney has asked you to believe 1) bain paid him 6 figures to do nothing 2) naacp folks want free stuff.

That's a good point but the bold might be even worse. I think the available materials indicate that he was paid "at least $100,000." Who knows how big the actual number is? That might be part of the reason why he wants to keep his tax returns hidden.

 

It would be even more difficult to claim that he did nothing with Bain after 1999 if he was still being paid millions of dollars for doing nothing.

[carlfense]

Sounds like more information might be released in the next few days.

 

Best of luck, Mitt.