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Entries in Bain Capital (3)

Sunday
Sep022012

NY Attorney General Investigates Tax Strategy of Equity Firms, Including Bain Capital

iStockphoto/Thinkstock(NEW YORK) -- New York Attorney General Eric Schneiderman is investigating some of the nation's biggest private equity firms, including Bain Capital, founded by Republican nominee Mitt Romney, to determine whether they abused tax strategies in order to pay hundreds of millions of dollars less in taxes, The New York Times reports.

Schneiderman has subpoenaed documents from more than a dozen firms in recent weeks, which would reveal whether the they converted certain management fees received from their investors into fund investments, which are taxed at a significantly lower rate than ordinary income. The tax strategy was revealed last month when hundreds of pages of Bain's internal financial documents were made available online. The records showed that the firm had converted at least $1 billion in fees that normally would have been taxed as ordinary income at 35 percent into investments producing capital gains, which are taxed at the lower rate of 15 percent, according to the Times.

The subpoenas were reportedly issued before the leak of the Bain documents and do not appear to be connected, the paper says.

Copyright 2012 ABC News Radio

Friday
Jun222012

Obama Campaign: Romney Would Be 'Outsourcer In Chief'

Riccardo S. Savi/Getty Images(WASHINGTON) -- The Obama campaign pounced this morning on a Washington Post article claiming Bain Capital invested in companies that helped ship American jobs overseas while Mitt Romney was at the helm of the firm, calling it a “significant moment” in this campaign.

“People really have a fundamental choice in this election,” Obama campaign strategist David Axelrod told reporters on a conference call. “The question is, do they want an outsourcer-in-chief in the Oval Office or do they want a president who will fight for American jobs, American manufacturing and the American middle class.”

The president’s campaign argues the article is further proof that Romney’s business record would not translate into economic growth if he were elected president.

“This is really significant because throughout this campaign Romney has suggested that the experience that he’s had in business gives him special insights into the economy and that would translate into jobs and growth and benefits to the American worker,” Axelrod explained. “This article speaks more to the kind of experience he has, the kind of insights he may have drawn from that experience. And it goes to the fundamental question of whether that is the experience that we need in the Oval Office. Do we need the philosophy that embraces outsourcing and offshoring as a positive tool in our economy?”

In response, the Romney campaign is drawing a distinction between “outsourcing,” which can include moving jobs from one domestic firm to another, and “offshoring” jobs to another country.

“This is a fundamentally flawed story that does not differentiate between domestic outsourcing versus offshoring nor versus work done overseas to support U.S. exports,” Romney spokesperson Andrea Saul said in a statement. “Mitt Romney spent 25 years in the real world economy so he understands why jobs come and they go.  As President, he will implement policies that make it easier and more attractive for companies to create jobs here at home.  President Obama's attacks on profit and job creators make it less attractive to create jobs in the U.S.”

The Obama campaign isn’t buying that argument. “It’s very important that we look at the Governor’s true record on this issue and not be snookered, so to speak, by cosmetics as to what Bain did or didn’t do. We know what Bain did and it moved thousands and thousands of good paying American jobs off shore,” Obama surrogate Leo Hindery, managing partner of InterMedia Partner, said on the call.

“For those of us who looked at that story today, there’s a bright line between offshoring American jobs, that’s moving them outside of this country, and outsourcing them,” Hindery later added. “Bain was a company that preponderantly off-shored jobs. And even in those where it outsourced domestically, it did so into lower-cost settings at the expense of workers and their union organizers."

Copyright 2012 ABC News Radio

Sunday
Jan152012

Rick Perry Says Mitt Romney’s Bain Record Could Be a ‘Fatal Flaw’

ABC News(CHARLESTON, S.C.) -- Texas governor and Republican presidential candidate Rick Perry calls his rival Mitt Romney’s work at Bain Capital a potentially “fatal flaw” which could imperil Republican chances to win back the White House in November.

Perry, who is trailing badly in the polls, spent the week attacking Romney as a “vulture capitalist,” whose work at Bain allowed him to reap huge profits by dismantling companies and laying off workers.

Perry’s criticism has sparked a backlash by some prominent Republicans.  Former New York Mayor Rudy Giuliani denounced the attacks as “ignorant and dumb.”  Fox News host Sean Hannity compared them to the rhetoric of Occupy Wall Street.  And influential Sen. Jim DeMint, R-S.C., warned that Perry’s charge “really gives the Democrats a lot of fodder.”

Sunday morning, Perry defended himself to George Stephanopoulos.

“This is not something that we knew wasn’t coming up,” Perry said on “This Week.”  “It’s better to be talking about it here in January in South Carolina than it is in September and October with a nominee.  So if it’s a fatal flaw, then we need to talk about it now.”

Perry said he’s not ready to buy into Romney’s claim that he created more than 100,000 jobs while at Bain, saying, “I think the question is out there and it’s a good conversation to have.  We’re going to get tested by Obama and his group, so you better have all of these answers done early.  No surprises in September and October.”

Perry, once considered a strong contender for the Republican nomination, placed a disappointing fifth in the Iowa caucuses.  That night, he told supporters he was heading home to Texas to “reassess” his campaign.  Many thought he would give up the fight, but Perry quickly returned to the trail.  He has invested heavily in South Carolina, the first primary in the South, which takes place on Saturday.

When I asked him if he’d drop out if he fails to finish first or second in the Palmetto State, Perry said: “We’ll make that decision on Saturday.  Our intention is to win South Carolina and go forward from there.  But to try to plan your campaign months in advance, I think is a little bit of a stretch.”

Copyright 2012 ABC News Radio







ABC News Radio