The Wall Street Journal Confirms Parish & Company Analysis of Bain Capital Profit Sharing Plan and Romney IRA

Pulitzer Prize winning reporter and senior editor Mark Maremont of the WSJ wrote the following two stories, explaining how Presidential Candidate Mitt Romney built his IRA to as much as $100 million. Both stories were based upon original Parish & Company analysis.  The purpose of this analysis is not to directly disparage Romney but rather … Continue reading The Wall Street Journal Confirms Parish & Company Analysis of Bain Capital Profit Sharing Plan and Romney IRA

Mitt Romney’s Tax Return – An Inside View

Note: Analysis of Bain Capital Profit Sharing Plan in Separate Post A leading reporter recently asked me to take a look at Mitt Romney's 502 page tax return. What resulted was a fascinating journey that will hopefully initiate a common sense dialogue on needed tax reforms. Newt Gingrich's return was also analyzed, yet revealed no substantive tax policy issues. To be clear, I am a strong critic of large private equity and hedge fund "buyout" firms. To me they are clearly no more than sophisticated tax deduction pyramid schemes. Others might argue they are the very definition of crony capitalism and via "club deals" are creating abusive monopolies that are destroying open markets. That said, it is also true that these large private equity firms pay very close attention to my work and jokingly refer to me as Sherlock's Sherlock when it comes to financial analysis. So here we go.

Bain Capital Profit Sharing Plan Likely Reveals How Romney Built IRA

Note:  Mitt Romney Tax Return Analyzed in Separate Post As an investment advisor I have found reviewing a company's pension plan to be a good indicator of the sponsoring company's quality of management.  These pension plans are all available for viewing at http://www.free5500.com via required  annual 5500 ERISA filings.  The filings show not only show … Continue reading Bain Capital Profit Sharing Plan Likely Reveals How Romney Built IRA

Letter to SEC Chair and IRS Commissioner – Tax Deduction Pyramid Scheme

The following letter was sent to SEC Chair Mary Schapiro and IRS Commissioner Doug Shulman on "tax day" with the hope they will jointly work at restoring the integrity of cash flow statements, without question the most important analytical tool for investment advisors like myself.  It is simply astonishing, given their material nature, that listed … Continue reading Letter to SEC Chair and IRS Commissioner – Tax Deduction Pyramid Scheme

Blackstone’s Tax Engineers, Inspired by General Electric, Attempt to Repeal The Fractions Rule

Prior to the fractions rule, investors were investing $1 in order to get $5 to $7 in tax deductions. President Reagan was so incensed that he signed into law new legislation, the "fractions rule," specifically designed to end this scheme.  During this period no firm was more abusive with respect to tax avoidance than General … Continue reading Blackstone’s Tax Engineers, Inspired by General Electric, Attempt to Repeal The Fractions Rule

Blackstone Group LP – Private Equity or Public Theft? Undermining the Volcker Rule’s Intent. SEC 10K Fails to Disclose All Important “Fractions Rule” Involving Tax Exempt Public Pension Investors

Note (Not Copyrighted) : This basic post was updated December 10, 2010 given the current debate in Congress over extending the Bush tax cuts and numerous inquires regarding my position in this debate.  The purpose of this post is to highlight that although rates are important, perhaps more important are overall fairness issues associated with … Continue reading Blackstone Group LP – Private Equity or Public Theft? Undermining the Volcker Rule’s Intent. SEC 10K Fails to Disclose All Important “Fractions Rule” Involving Tax Exempt Public Pension Investors

Estate Tax and Tax Equity: Bill Gates Sr. Battles Son Bill Gates Jr. as Grover Norquist and Warren Buffett Weigh In

One century ago Republican Theodore Roosevelt was elected president and instituted sweeping changes in government, including the establishment of an estate tax and the national park system.  What followed was an economic boom that lasted for years. Roosevelt knew the importance of circulating wealth in order to revitalize the economy by investing in key infrastructure, … Continue reading Estate Tax and Tax Equity: Bill Gates Sr. Battles Son Bill Gates Jr. as Grover Norquist and Warren Buffett Weigh In