On No Say it Isn't So (link)

[_The Mighty Builder]

http://www.ksl.com/index.php?sid=219716 ... d=queue-13

"New York's attorney general is investigating tax strategies of some of the nation's largest private equity firms, including Bain Capital, founded by Republican presidential nominee Mitt Romney, an official familiar with the probe said Sunday."

"Attorney General Eric Schneiderman is examining whether the firms have abused a tax strategy to avoid paying hundreds of millions of dollars in taxes, said the official, who spoke on the condition of anonymity because of the sensitivity of the probe. The practice involves converting some fees collected for managing accounts into fund investments, resulting in a lower tax rate."

[_MeDotOrg]

From the Business Insider:

More specifically, what (Attorney General) Schneiderman wants to know is whether or not private equity firms, hedge funds, and venture capital firms alike have been converting management fees into fund investments so they can be taxed at a lower rate (15% — the capital gains rate rather 35%).

When Gawker published hundreds of pages of Bain's internal financial documents online, it was revealed that "at least $1 billion in accumulated fees that otherwise would have been taxed as ordinary income for Bain executives had been converted into investments producing capital gains..." said the NYT report.

It's not a FEE, it's an INVESTMENT. Yeah, right.

[_moksha]

What a shame Obama was not involved. Think how many threads on this forum could have sprung from such a charge and the links would not have to originate on some crackpot blog.