KKTV 11 News | Colorado Springs, Pueblo | News

N.Y. Attorney General Opens Probe Into Bain Tax Strategy

By: CBS/AP
By: CBS/AP

The New York attorney general has opened an investigation into numerous private equity firms, including Bain Capital, according to an official familiar with the inquiry, CBS News has confirmed.

Attorney General Eric T. Schneiderman is examining whether the firms used a tax strategy to avoid paying hundreds of millions of dollars in taxes. The practice involved converting some fees collected for managing accounts into fund investments, resulting in a tax rate of 15 percent instead of 35 percent.

Republican presidential candidate Mitt Romney co-founded the private equity firm in 1984. He ran the organization until 1999, although documents show that he remained the sole owner, president and chief operating officer until 2002.

The New York Times first reported the investigation of more than a dozen firms. The report indicates that some observers think it is a political motivated investigation by a Democratic attorney general with relations with President Obama, while others say Schneiderman is seeking additional tax revenue for New York.

Tax experts tell the Times they have differing views about the strategy's legality. The New York Times estimates that Bain saved more than $200 million in taxes.

Though Romney collects benefits as a Bain retired partner, the inquiry isn't focused on the time he ran Bain.


KKTV firmly believes in freedom of speech for all and we are happy to provide this forum for the community to share opinions and facts. We ask that commenters keep it clean, keep it truthful, stay on topic and be responsible. Comments left here do not necessarily represent the viewpoint of KKTV 11 News.

If you believe that any of the comments on our site are inappropriate or offensive, please tell us by clicking “Report Abuse” and answering the questions that follow. We will review any reported comments promptly.

powered by Disqus
KKTV 520 E. Colorado Colorado Springs, CO 80903 Office: (719) 634-2844 Fax: (719) 632-0808 News Fax: (719) 634-3741
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 168324776 - kktv.com/a?a=168324776