Romney Avoids Taxes via following the law

[Metsfanmax]

Okay, so I read a lot of what was in this thread and I would say the majority is way off topic. So, sorry to switch gears again.

Off topic is the new on topic.

Man, you derailed my re-railing.

*takes a bow*

I don't have a problem with topics straying and this is the forum for it to happen within reason anyway. My reason for switching gears is because I was genuinely curious.

I'm going to be quite honest, I didn't even read what this thread was actually about. I'm curious too.

[Ace Rimmer]

Regarding the link. I am not trying to be dense or anything, but what was the benefit to putting money in a trust for charity rather than donating directly to charity? I didn't really see the benefit that Romney or anyone would gain from that. Maybe I just missed it.

Because he was able to be paid a fixed annuity from that trust, even when the contents of the trust were losing value.

He gave $Y to the trust
the trust was set up to give him $Y x Z% annually tax free because the beneficiary of the trust was a tax-free entity (in this case the Mormon Church)
The returns on the trust are <Z%, so the trust loses money while he gets Z% tax-free every year

Still waiting on NS to explain how that is moral and/or ethically responsible, even if it's within the law.

[kentington]

How does that compare to the tax break of just giving to the charity directly?

[Ace Rimmer]

giving to charity = deduction of $Y

charitable trust = deduction (I'm not sure how much you get) + tax-free income of $Y x Z% annually

charitable trust wins

[kentington]

giving to charity = deduction of $Y

charitable trust = deduction (I'm not sure how much you get) + tax-free income of $Y x Z% annually

charitable trust wins

Ohhhhh now I get it. And there is absolutely no benefit for the charity involved. That does bother me. At least this isn't a he makes too much money and took some deductions thread. That is what I thought it was.