Saturday, August 25, 2012

"We built him"


Bain Capital was not in the business of creating jobs, or even saving companies over the long-term. Its model had a relatively low rate of success; a study by Deutche Bank found that 33 out of 68 major deals cut on Romney’s watch lost money for the firm’s investors. Its richest deals made up for the flops, however, and Bain’s partners were guaranteed hefty fees regardless of how the businesses they “restructured” ultimately performed.

Romney and his partners then exploited a loophole in the tax code that allowed them to pay just 15 percent of their growing fortunes in taxes — a rate less than what many of their companies’ employees forked over to Uncle Sam.

“By and large, [government] gets in the way of creating jobs,” Romney said during a GOP debate last year. But, as the Los Angeles Times noted, “during his business career Romney made avid use of public-private partnerships, something that many conservatives consider to be ‘corporate welfare.’”


StonyPillow said...

He's not the black guy.

pansypoo said...

and as long as MITT made fees and cuts. only the house wins.

Montag said...

There's also a large tax advantage (thanks, Uncle!) in financing companies with debt, rather than equity, which is why so many of Bain's deals saddled companies with huge debt while Bain execs extracted "management fees" from them. And the law governing those deals allowed them to do it without being responsible for the debt themselves.

No, Mitt, don't say Unca Sam never did anything for you.