The New York Times is reporting that Bain Capital, the private equity firm founded by GOP presidential nominee Mitt Romney, is among a number of firms being investigated by New York Attorney General, Eric Schneiderman, for failing to pay taxes.
The New York AG’s Taxpayer Protection Bureau has issued subpoenas to at least twelve financial firms, including Bain, looking into whether the companies converted management fees (taxed as ordinary income) paid by investors into fund investments which are taxed at a dramatically lower rate.
The controversial tax avoidance scheme came to light last month when Bain Capital internal financial information was published online by Gawker.com , however the investigation had reportedly commenced prior to the publication and is not believed to be tied to the document dump.
While Governor Romney has not been active at Bain Capital for quite some time, he does continue to receive profits from the company and held investments in some of the funds that utilized the tax avoidance strategy.
The Romney campaign issued a statement indicating that the Governor had not benefited from the practice.
Well of COURSE the Romney campaign will say that Mitt the Twit did not benefit from these practices. But since they refuse to release his tax results we can't know that, now can we?
However THIS is a very big deal, and it cannot help but cast a shadow over Mitt Romney, and the company that he helped to found. Of course this will make absolutely NO difference to those who were always going to vote for the Republican ticket, but it might have a withering effect on the3 undecideds whose vote might still be up for grabs.