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Romney As Multimillionaire Gets Break For Taxes Less Wage-Earner

Publication Date: 
January 17, 2012
Source: 
Bloomberg
Author: 
David Lynch and Lisa Lerer

Professor Joseph Bankman spoke with David Lynch and Lisa Lerer of Bloomberg on how Massachusetts Governor Mitt Romney may have benefited from controversial tax breaks.

Under pressure from his Republican opponents, former Massachusetts Governor Mitt Romney yesterday abandoned months of resistance and said he would make his 2011 tax return public in April.

The hesitation to disclose is understandable given that Romney, one of the richest men to seek the presidency, probably benefits from a controversial tax break that allows him to pay a lower rate than do millions of American wage-earners whose votes he’ll need to capture the White House.

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Joseph Bankman, a professor of law and business at Stanford Law School and an expert on tax policy, said Romney probably benefited greatly from the tax code’s treatment of carried interest.

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"It would be odd if he just made a lot of money from Bain Capital and he didn’t benefit a lot from it," Bankman said. "You’d expect a partner in private equity to benefit enormously from this provision."