What In Romney’s Tax Returns? – Digging for Dirt Reveals Romney Helps Family Purchase First Home

Romney's Pictured with his "Build It" Slogan - Walks the Walk - image Chron.com

While the Obama Campaign, Harry Reid and every news outlet continues to call for more than two years of Mitt Romney’s tax returns to be released, accusing Mitt Romney of not paying his “fair share” of taxes - The New York Times has uncovered an investment that might make those who would see Romney as a “vulture capitalist” back track a bit. Tucked into the real estate news section is an article about Romney’s investments in Houston in the early 1980’s. This real estate investment involved purchasing lower income properties, renting them out to own, in order to for everyone to benefit – the investor and those renting the properties. The housing market in Texas took a turn for the worst, and Romney held onto the properties even when other investors bailed. When the market improved, he gave the renters the opportunity to buy the homes – personally backing the mortgages, even to those that could not be approved for a traditional bank mortgage. (NY Times)

From the New York Times:

“The renters were offered the first chance to buy, but the Stampses could not qualify for a mortgage, recalled Mr. Stamps, who at the time had recently lost his job at an oil company.

“Then I got this phone call, personally, from Mr. Romney, asking if we really wanted to buy the house,” Mr. Stamps, 63, said in an interview the other day at the barbershop he now runs. “I said, yes we did. And he said he would loan us the money. He really helped us when we needed it.”

“Mr. Stamps said that he and his wife had received calls in recent months from strangers who “seemed to be looking for negative stuff” about Mr. Romney, but that the couple had nothing to say to them. (The Stampses recently refinanced the original 30-year loan; the new mortgage, still with Mr. Romney, was dated June 12 but signed just two weeks ago. Details of the interest rate were not included in the public record.)”

The Times article notes that the Romney Campaign had no statement on this particular story – which is not unlike the Campaign – given that there are instances in Romney’s character that show a man that would help individuals, no matter the circumstances, and no matter who the individual are. It is a rare glimpse at the “other Mitt Romney”, the young man who gave his entire inheritance to charity away while in college and opted to live in a basement apartment in Boston instead. A young man who worked his way up the ladder on his own – no handouts. Critics are quick to site that there must be something he’s hiding in those tax returns, and perhaps there is – perhaps additional investments and or charitable ventures that, the reserved Romney might prefer to keep to himself.

Little has been reported about his selfless rescue of a family and their dog while he was the Governor of Massachusetts – those types of stories don’t fit with the Press and Obama Campaign narrative. Moreover, and the reserved Romney doesn’t tout personal information that might put him in a very positive light. Perhaps given his position in the national spotlight, he prefers not to involve others that he may have helped – the result being hounded by “people that were looking for negative stuff” on Mitt Romney. It is all speculation on what drives the man who has built a fortune from the ground up, while being characterized as heartless by the Obama PAC’s and Campaigns – with 98% of the “news” coverage regarding Romney being negative. One might think he’d like a boost – but it’s obvious that’s not in his character. It does however, play into the Romney narrative of a hand up not a hand out to those in need, unlike the current government policy.

Perhaps those other returns might reveal instances where he reached out and helped others, something that would go missing from the main news (but tucked into “real estate” or under some other heading bound to less viewed) while the focus would continue to be on his ability to amass a fortune, as if the very act of striking it rich, were a crime in our society. Those returns may tell a different story and show a side to the former Massachusetts Governor that would not work for Harry Reid, or the Obama Campaign, but Romney’s sticking by the law that does not require candidates to release any tax returns.

The Democrats and Mitt Romney’s Tax Returns – 2002 - 2012– Dem’s Harass Romney for Returns – A Fishing Expedition Reveals – Nothing but Innuendo’s

2002 Candidate for Govenor Shannon O’Brien – DNC and O’Brien Had Romney Returns to Establish Residency – Would have used Bain as angle for fraud, if there was an angle

The Obama Campaign has recently suggested that Mitt Romney must be hiding something because he will not release twelve years of tax returns according to the Boston Globe. In fat if one takes a trip over to Barack Obama’s Campaign site www.barackobama.com/tax-returns, one finds twelve years of tax returns, three of which cover his term in the White House – one finds that on an average, the President is worth a few million dollars, has overseas income and pays his federal taxes using a 1040, he also files with the State of Illinois. That said it is not a requirement that any candidate or president release his or her tax returns. This was a political ploy begun in the 1970’s by one Georgia Governor, James Carter, calling on Gerald Ford to release his tax returns for 10 years.(Toledo Blade).

Other presidential candidates have released twelve years, two years, or four – while those who are incumbents generally release taxes for every year they are in office. To view Presidential tax returns since the “fad” began, visit www.taxhistory.org where tax returns that were found to be available are on display Including Mitt Romney’s.

This is not the first time Mitt Romney has been harangued to release tax returns, in his race for Govenor of Massachusetts, his Democrat opponents suggested that he was not legally a resident of the state, a subsequent review of his tax returns put that witch hunt to bed – and Romney went on to become Governor. However, the double standard by party and even within the Democrat party exists: For example: Barack Obama’s close friend, Govenor Duval Patrick (Boston Globe pay per view archives) refused to release his returns:

“Reilly, who is of relatively modest means, has released his income tax returns and demanded that Gabrieli and the other Democrat in the race, Deval Patrick, release theirs. They have refused. This week, Reilly complained that the public knows very little about their corporate records.”

Finally, on Bain Capital and what one might or might not expect to find - Opposition Research from the McCain 2008 team against Mitt Romney, somewhat contradicts the President as well as the Media and their timelines – Knowing how rough and tumble and downright nasty the GOP and DNC Presidential primaries can be – opposition research focuses on the pitfalls, statements and any vulnerabilities that a candidate may have – in reviewing the McCain opposition, it is quite clear that if something existed they would have found it (McCain-Feingold anyone?) –

From the opposition research one finds a great deal of negatives about Bain Capital viewed as possible fodder – however, these are indirectly related to Mitt Romney’s involvement in Bain – other than as an investor – the key piece to the puzzle: (The-Romney-Book)

Current Bain Capital Managing Partner Josh Bekenstein Founded Company With Romney In 1984. “Mr. Bekenstein joined Bain Capital at its inception in 1984. He has been a Managing Director since 1986.
Prior to joining Bain Capital, Mr. Bekenstein spent several years at Bain & Company where he was involved with companies in a variety of industries.” (Bain Capital Website, www.baincapital.com, Accessed 2/26/07)

And

Romney Ran Day-To-Day Operations At Bain Capital From Its Inception In 1984 Through Early 1999, When He Left To Assume Control Of The Salt Lake Winter Games. “When Mr. Romney finally set up shop just across the hall from Bain consulting in 1984, his initial plan centered on providing venture capital – seed money – 136
for ideas spun off by Bain consultants. … By the time Mr. Romney left the firm in 1999, the investments it had sold off had made enough money to deliver an average annual return that amounted to as much as 100 percent before fees, several of its investors said.” (David Kirkpatrick, “Romney Political Fortunes Tied To Riches He Gained In Business,” The New York Times, 6/4/07)

And

Romney Served As CEO Of Bain Capital Through August 2001, Even Though He No Longer Ran Daily Operations. “Although he gave up running day-to-day operations at the venture capital firm in order to head the Salt Lake Winter Olympics, he remained CEO and held his financial interest in the company through August
2001.” (Stephanie Ebbert and Yvonne Abraham, “Camps Spar Over Romney Word Choice,” The Boston Globe, 10/31/02)

Finally, guilt by association:

Bain Capital Is “Remains Romney’s Creation” As Over Three-Quarters Of Its Partners Came On Board During Romney’s Tenure, Joining The “Corporate Culture … He Nurtured Over 17 Years.” “Bain Capital remains Romney’s creation. The corporate culture is one he nurtured over 17 years. A Herald analysis of the firm’s leadership shows that more than three quarters of the managing partners joined when he was the boss.”
(Brett Arends, “American Workers’ Bane,” Boston Herald, 6/22/05)

What we’ve learned:


Candidates for office either release or don’t release tax returns – they are under no obligation to do so.

Release of tax returns is a personal and privacy issue, hwoever, when pushed, politicians use the release of tax returns as a way to either push themselves up or knock the other guy down.

It’s a new practice – tax return by release of candidate began in the 1970’s.

Class Warfare – watch out for millionaires who don’t release their tax returns, unlike the President, a millionaire who does?

The Bain brouhaha – much ado amount nothing

Boiled down to reality – Romney began Bain Capital, it is suggested that he was the influence over their decisions simply because three-quarters of the staff came on board while he was there.

He did indeed serve as CEO however, it was in name only – the actual guy in charge since 1986 was Romney’s Partner Josh Bekenstein – title Managing Direct – with all that it implies.

That said, although the New York Times reports that Romney ran day-to-day operations at Bain, (With the Managing Director and partner not included in the Times report) – he left in early 1999.

He has investments in Bain and as a result receives “income” from investments. (If one has a 401K, one also has investments, and will derive income from those investments, other investment vehicles, savings plans, annuities, pensions (includes Government and Private Industry)

Therefore, it’s a question of corporate law, and the severance of a partnership rather than mere employment, which, for the benefit of the Firm and most assuredly the Benefit of Mitt Romney (who is no financial slouch) the time to hammer out a suitable agreement as to retirement would take some time in the real world – up to 2 or 3 years is not out of the question for mid-to upper level management contacts, depending upon the firm.

Additionally, information on Romney’s tax returns obtained by the State of Massachusetts and the Massachusetts Democrat Party, had there many any abnormalities for the period in which Romney was severing his partnership at Bain, would not have gone unnoticed. In fact, it would have been a key point of contention and used in Shannon O’Brien’s favor, thereby sinking Romney's Gubernatorial campaign, and well, Obama's campaign would be yelling for someone else' tax returns. This is the time period for which the Obama administration is calling on Romney to release, it’s been done, and one would think that the Obama administration knows this – they also know that Romney would then release the tax returns, and he would be “rich” – but not have broken one darn law.





So, we now know that Romney was successful in business, fixed the Olympics and that the unemployment rate continues to remain above 8%