Mitt Romney Gets Tax Break Off Firm Sending Jobs To China

 WASHINGTON — Sensata Technologies is a healthy manufacturing company that employs nearly 200 workers at a factory in northern Illinois. The company has become the focus of national attention because it has been taken over by Bain Capital, which plans to shut the factory down, lay off the workers, and outsource the production to China before the end of the year.

The workers have pleaded with GOP presidential candidate Mitt Romney, the founder of Bain Capital, to exert his considerable influence to save their jobs. Romney still makes millions each year in income from Bain. So far, he has declined to weigh in, and the factory is scheduled to close by the end of the year.

While the workers and the town may suffer, Romney himself has done well as a result of Bain’s work with the company. According to his recently released 2011 tax returns, Romney transferred $701,703 worth of Sensata stock to the Tyler Charitable Foundation, a 501(c)3 tax-exempt nonprofit controlled by Romney. The gift is listed on page 323 of the pdf, on form 8283 (below).

Moving the stock to his nonprofit brings Romney twin benefits. First, he gets to deduct the full value of the stock. At a 35 percent tax rate, that’s nearly a $250,000 benefit. At 15 percent, it’s just over $100,000.

Second, Romney is able to avoid paying capital gains taxes on the stock price increase. Romney’s returns list no cost for the stock, and indicate he obtained them as part of a partnership interest in Bain. Avoiding capital gains taxes on the full increase would save an additional $100,000. In 2010, Romney gifted $170,000 worth of Sensata stock to his charity, saving $25,000 in capital gains taxes that year.

Read More:   http://www.huffingtonpost.com/2012/09/27/mitt-romney-sensata-tax-break_n_1920396.html?utm_hp_ref=elections-2012

About actionnowillinois

Action Now Illinois’s mission is to organize working families and strengthen their voices on issues of racial, social and economic justice. Action Now is active on issues that include foreclosure and vacant properties, school improvement, access to health care, living wage jobs, utility costs, immigrant rights, public safety, (both antiviolence and criminal justice reform), and environmental justice. Action Now Illinois is a member-driven organization. Our issue campaigns come out of listening to community residents through regular monthly meetings, engaging the base by going door-to-door and mobilizing all residents to take part in their community. Our leadership development includes formal leadership training and the active involvement by members in the planning, implementation and evaluation of issue campaigns. Action Now Illinois members are committed to fight for equal rights, equal services, and equal justice for working families. To become a member of Action Now; call (217) 528-1356 or e-mail ActionNowSPI@gmail.com!
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