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<blockquote data-quote="Hobbes" data-source="post: 1933102" data-attributes="member: 3371">He didn&#039;t claim all his deduction YET.&nbsp; He has 3 more years to file an amended claim and get a big check back from the government.The reason he didn&#039;t claim those deduction is because it would be embarrassing to admit he only paid 12% when he previously claimed that he has never paid less than 13%.He files his income as &quot;carried interest&quot; which qualifies as capital gains.&nbsp; It&#039;s actually muddier than that and some tax lawyers say it is illegal.When he started Bain capital he didn&#039;t put any capital in the company.&nbsp; Others did and he helped manage that capital.How can you have capital gains when you didn&#039;t put any capital in to begin with?What he did put into Bain is work, lots of work but still it was labor.And labor is supposed to be taxed as ordinary income, NOT capital gains.That&#039;s how he and others exploit the tax system.</blockquote>

[QUOTE="Hobbes, post: 1933102, member: 3371"] He didn't claim all his deduction YET. He has 3 more years to file an amended claim and get a big check back from the government. The reason he didn't claim those deduction is because it would be embarrassing to admit he only paid 12% when he previously claimed that he has never paid less than 13%. He files his income as "carried interest" which qualifies as capital gains. It's actually muddier than that and some tax lawyers say it is illegal. When he started Bain capital he didn't put any capital in the company. Others did and he helped manage that capital. How can you have capital gains when you didn't put any capital in to begin with? What he did put into Bain is work, lots of work but still it was labor. And labor is supposed to be taxed as ordinary income, NOT capital gains. That's how he and others exploit the tax system. [/QUOTE]

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