'We Don't Believe Anybody Is Entitled to Success in This Country'

[Hobbes]

I look at carried interest just like a stock investment or any other investment that is held for more than a year. If they invest and risk their own money, and it takes longer than a year to develop the investment, whether they sell it, or divest it, it should get the same consideration as other investments.

That's the whole point.

Romney put no capital of his own at risk.
He put the capital of his investors at risk.

 

[JB Books]

Entitled to success? No, we are not.

Entitled to the OPPORTUNITY for success? Absolutely.

 

[DPI]

That's the whole point.

Romney put no capital of his own at risk.
He put the capital of his investors at risk.

Was he getting paid for the services or was he investing his time?

I see no difference if its time and he does not receive a huge compensation for it. If his earnings are not readily available for more than a year, then it can be considered an investment.

 

[Hobbes]

Was he getting paid for the services or was he investing his time?

I see no difference if its time and he does not receive a huge compensation for it. If his earnings are not readily available for more than a year, then it can be considered an investment.

You can bend it every way under the sun if you want but it boils down to this.
Our tax code is designed to convey a lower tax rate on those who put their capital at risk and Romney put no capital at risk.

Did he put his labor at risk? Yes
Does every small business man put his labor at risk? Yes
But they don't get taxed the same.


Read this WSJ article:

http://online.wsj.com/article/SB1000...392150338.html

 

[DPI]

You can bend it every way under the sun if you want but it boils down to this.
Our tax code is designed to convey a lower tax rate on those who put their capital at risk and Romney put no capital at risk.

Did he put his labor at risk? Yes
Does every small business man put his labor at risk? Yes
But they don't get taxed the same.


Read this WSJ article:

http://online.wsj.com/article/SB1000...392150338.html

Actually business owners can write off any and all expenses related to the business including depreciation and goodwill. This lowers the effective tax rate and they can show a loss and pay no taxes even if they were pocketing cash.

 

[DPI]

Also, the link doesn't work.

 

[Hobbes]

Also, the link doesn't work.

Ooops

Try this one

http://online.wsj.com/article/SB10001424052702304811304577370062392150338.html

I won't give it away and tell you what the conclusion is, but it is the WSJ afterall.

 

[Hobbes]

Actually business owners can write off any and all expenses related to the business including depreciation and goodwill. This lowers the effective tax rate and they can show a loss and pay no taxes even if they were pocketing cash.

Good.

That's what I'll tell my doctor friend who is running a small clinic and paying a lot of taxes the next time he starts up with his tax rants.

Thanks

 

[DPI]

Good.

That's what I'll tell my doctor friend who is running a small clinic and paying a lot of taxes the next time he starts up with his tax rants.

Thanks

Ask him what tax rate he is paying and share it with us.

 

[Hobbes]

I doubt we will ever agree on this so I'll just distill my viewpoint down to this:

The US tax code is designed to encourage those with capital to put that capital at risk to create new businesses.

Romney put no capital at risk.
As a matter of fact, he took no risk at all.

Management at Bain Capital was paid on a contingency basis.
If they lost money on a business the managers didn't lose money individually.
The worst case scenario would be that they didn't get paid at all on a failed investment while the investors would suffer the loss in capital.

To me that distinction is crucial.

And if he took no risk of a loss in capital he's not entitled to a capital gains rate for his services.