Mitt Romney has been employing yet another strategy to avoid paying taxes, according to a new report.
Romney legally avoided paying taxes through a charitable remainder unitrust he set up with the Mormon Church in 1996, Bloomberg News' Jesse Drucker reports.
The trust, which is only a small fraction of Romney's $250 million net worth, has been paying Romney 8 percent of its assets every year, according to Bloomberg. Since charities, including the Mormon Church, are tax-exempt, Romney hasn't paid taxes on the money for more than 15 years. The Romney campaign declined to respond to questions from Bloomberg and only said through a spokeswoman that "the trust has operated in accordance with the law."
Romney has reportedly sidestepped taxes in other ways. He has been avoiding gift and estate taxes through a trust that he set up for his children and grandchildren, according to a separate Bloomberg report. He also holds a Swiss bank account and investments abroad, including in the Cayman Islands, where he does not need to pay U.S. taxes. In addition, Romney avoided taxes by playing an "active" role at Bain Capital even after he had retired, according The Huffington Post.
Romney paid just a 14 percent tax rate in 2010 and 2011 and has refused to release earlier tax returns. His taxes have become a source of contention on the campaign trail, as the 14 percent rate is lower than that of many middle-class Americans.
Meanwhile, Romney has come under fire for proposing a tax plan that some analysts say doesn't add up. Romney has proposed slashing marginal tax rates by 20 percent and slashing taxes on investment income without raising taxes on the middle class or increasing the deficit, but the nonpartisan, nonprofit Tax Policy Center said in August that his proposal is mathematically impossible.
Earlier on HuffPost:
The Koch Brothers
The Koch Brothers are known for being outspoken supporters of right-wing politicians. They have <a href="http://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer">donated millions of dollars</a> to Republican campaigns, and now they are trying to influence votes in a new way: by <a href="http://www.huffingtonpost.com/2012/10/14/koch-romney-brothers-mitt_n_1965366.html">emailing 50,000 of their employees</a> urging them to vote for Romney.
Westgate Resorts CEO David Siegal recently <a href="http://www.huffingtonpost.com/2012/10/11/david-siegel-email-intimidate_n_1957743.html">emailed his employees</a> saying that if Obama wins the election, he will be forced to downsize his company. Siegal insists this statement was <a href="http://www.clickorlando.com/news/David-Siegel-Anti-Obama-email-wasn-t-a-threat-to-employees/-/1637132/16929310/-/5jsbkyz/-/index.html">not a threat</a> and that no employee would be fired for voting for Obama, WKMG Local 6 reports. Pictured: Siegel's famously unfinished mansion.
Jack DeWitt, CEO of frozen food company Request Foods, <a href="http://www.huffingtonpost.com/2012/10/25/jack-dewitt-mitt-romney_n_2017539.html?1351190686">endorsed Mitt Romney</a> and called President Obama a "complete failure" in his employee newsletter.
Scott Farmer, CEO of uniform manufacturer Cintas, recently <a href="http://www.huffingtonpost.com/2012/10/25/cintas-ceo-scott-farmer-obamacare-email_n_2019292.html">sent an email</a> to his employees saying that if Obama wins the election they may lose their healthcare and even jobs, urging them to vote for Romney.
Brooks Smith, CEO of gift card purveyor Incomm, <a href="http://www.motherjones.com/mojo/2012/10/romney-fundraising-email-ceo-incomm-brooks-smith">recently forwarded</a> a Romney campaign fundraising email to his staff, Mother Jones reports.
Mike White, the CEO of Rite-Hite, a manufacturer of loading dock equipment, told his employees that they would suffer <a href="http://www.huffingtonpost.com/2012/10/25/mike-white-ceo-email_n_2017372.html">"personal consequences</a>" if Obama is reelected.
Richard Lacks, CEO of car-parts manufacturer Lacks Enterprises, recently <a href="http://www.huffingtonpost.com/2012/10/08/lacks-enterprises-ceo-richard-lacks-mitt-romney_n_1947737.html">encouraged his employees</a> to vote for Romney, saying that another Obama term would mean higher taxes and lower wages.
Robert Murray, CEO of coal company Murray Enterprises, not only <a href="http://www.huffingtonpost.com/2012/10/04/bob-murray-mitt-romney-miners_n_1940563.html">put pressure on his employees</a> to vote for Romney, but also forced them to give up a day's pay to <a href="http://www.huffingtonpost.com/2012/10/09/murray-energy-romney_n_1950724.html">attend a Romney rally</a>. The Ohio Democratic Party is <a href="http://ohiodems.org/wp/wp-content/uploads/2012/10/Murray_Energy_Letter11.pdf">planning a criminal investigation.</a>
Arthur Allen, CEO of ASG Software Solutions, <a href="http://www.huffingtonpost.com/2012/10/20/arthur-allen_n_1992370.html">sent an email to employees</a> requesting that they donate to Romney's campaign, arguing that by doing so, his employees would be helping ASG and themselves.