The Tax Fraud

Business executives find active investor status irresistible:  It means they can deduct business loses from their ordinary income.  That is like the average stockholder of General Motors deducting GM loses from their wage income.  For Romney it means millions of dollars in his pocket.

The tax issue is revealed by his recent claim of passive investor status starting February 11, 1999 at Bain Capital.  That directly conflicts with reported statements by one of his attorneys and a news report from 2001, which identify his status as active in the business until sometime in 2001.  It is hard to believe that an aggressive taxpayer would not claim to be an active investor if there were any basis to do so.  Once active investor status is claimed, several years of subsequent tax returns may be affected.

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