Sunday, July 08, 2012

Mitt Romney - Tax Cheat

Mitt Romney's Individual Retirement Account (IRA) has $100 million in it. Through the miracle of compound interest, and assuming the maximum annual donations plus 10% annual investment growth, it would only take 78 years to accumulate an IRA that size. Mitt is only 65 and the IRA tax laws are only 41 years old.

So, how did he perform this feat?

One theory is he gamed the system. Romney would sell his Bain Capital investments to Romney's retirement fund for a fraction of their true value. Apparently this is "legal" in that if you are a middle class shop owner and try to defraud the IRS like this you'll spend your golden years in a federal penitentiary but there are loopholes for millionaires. 

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