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LookieNoNookie -> RE: Romney Paid 13% ? How come I Pay 20% ? (9/23/2012 4:52:12 PM)
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quote:
ORIGINAL: DomKen
quote:
ORIGINAL: LookieNoNookie
quote:
ORIGINAL: DomKen
His money is supposed to be in a blind trust actually.
His money is supposed to be in a blind trust when he is an elected official.
Some of his money currently is.
His money is supposed to be in a blind trust now. He claimed he put his money into a blind trust before being elected Governor and he has never changed that.
Right. I'm sure you're correct (Dom) Ken. He has not been involved in his own personal investments since he left office in 2007. Absolutely. You betcha.
(Some things are clearly above your pay grade (Dom) Ken, that's becoming more evident by the day, however, I am here to help....read on).
After you're done reading below, I'll explain carefully (but in simplified form, for space considerations) to you how a Trust (any Trust) works (the highlighted sections are going to be key components of this lesson (Dom) Ken....so please grab a pen and paper and take notes).
(Sorry....disregard that last point....grab a pencil....with a fresh eraser).
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http://www.idahostatejournal.com/news/local/article_ec76821a-0490-11e2-a42e-001a4bcf887a.html
"Most of their income is from investments held in a blind trust, and campaign aides have stressed that he makes no decisions on how his money is invested. Capital gains and dividend interest is now generally taxed at 15 percent whereas the top marginal rate for income from wages is 35 percent.
The Romneys reported $6.8 million in capital gains, such as from the sale of stocks and other securities, and $6.37 million from dividends and taxable interest".
http://www.shanghaidaily.com/article/shdaily_sing.asp?id=512481&type=World&page=0
"Romney's wealth has been estimated as high as US$250 million, and much of it is held in a blind trust. Campaign aides have stressed that Romney makes no decisions on how his money is invested."
Okay...ready? Here we go:
1) A Trust (any Trust) is a legal vehicle to hold assets. It can hold any kind of assets; money, real estate, banana's, cars, newspaper editorials, even dildos and frictionless hand cream.
2) It is (generally) established for a predetermined time and with very specific codicils, a codicil being (another) device that effectively defines (revokes or enforces) certain provisions already established, many of those being predicated by law.
3) A Trust is (generally) established for the benefit of another (such as children). It can also be defined as benefiting the originator of said Trust.
Because a Trust is a legal entity, it has its own tax number (much like you, (Dom) Ken, have an SSI #). To co-opt a phrase....Trust's are people too.
In short, the Trust must distribute all income (unless it was predefined not to do so and if that were the case, then any "distributions" {which, from a Trust can only be 2 things: Dividends or interest earned....everything else is "principle" and would generally, but not always by default, dissolve the Trust} not distributed would then become "assets of the Trust" and to remove them at a later date would typically cause either double taxation because all events must occur with a defined and given tax year or dissolution).
Because the Trust is a legal entity, if there were capital gains within the trust, and since that is not "income" (rather, "asset appreciation" which when transferred to the Romney's would be "unearned income" and which would have been taxed at an entirely different level under a Trust), then for "The Romneys (to have) reported $6.8 million in capital gains, such as from the sale of stocks and other securities" would therefore indicate (as the two articles above surmise) that indeed, not only are all of the Romney''s assets not in a blind trust......solely based on the taxable events in the known two tax documents they have disclosed (and not just on some reporters supposition as shown above), it is in fact impossible for "all of their assets to be in a blind Trust".
Thus endeth the lesson (Dom) Ken.
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