Tag: USC Gould

The Great Diversion: Romney’s Taxes

EDWARD J. McCAFFERY, professor of law, economics and political science, USC’s Gould School of Law.

This op-ed originally appeared at CNN.

By now, most of us have probably heard that Mitt and Ann Romney paid just under $2 million in taxes on income — virtually all from investments — of just under $14 million for 2011, an effective tax rate of 14.1%. This is a low tax rate, lower than the typical middle-class American worker pays, especially when one considers payroll taxes, the largest burden for most Americans. It should concern us that individuals of Romney’s wealth — analysis has put his personal fortune as high as $250 million, not counting some $100 million in trusts set up for his five children — pay so little as a percent in taxes.

Some Call It Tax Planning — Or Is It Tax Cheating?

EDWARD D. KLEINBARD, professor of law, USC Gould School of Law.

This op-ed originally appeared in the Los Angeles Times.

For citizens hoping for serious tax policy and budget debates, this has been a dispiriting election cycle. One party urges tax rates too low to support any plausible platform from which government can deliver the services we all expect.

Those are the Democrats.

The other party inhabits a realm of fantasy akin to Erewhon, the fictional land created by the 19th century satirist Samuel Butler. In Erewhon, Butler wrote, “If a man has made a fortune … they exempt him from all taxation, considering him as a work of art, and too precious to be meddled with; they say, ‘How very much he must have done for society before society could have been prevailed upon to give him so much money.'”

Profiles in Tax Avoidance

EDWARD D. KLEINBARD, professor, USC’s Gould School of Law, and Peter C. Canellos, former chair of the New York State Bar Association Tax Section.

This op-ed originally appeared at CNN.

Mitt Romney’s refusal to release tax returns in the critical years of his income accumulation has done little to dispel the legitimate concern that arises from hints buried in his scant disclosure to date: Did he augment his wealth through highly aggressive tax stratagems of questionable validity?

One relevant line of inquiry, largely ignored so far, is to examine what exists in the public record regarding his attitude toward tax compliance and tax avoidance. While this examination is hampered because his dealings through his private equity company, Bain Capital, are kept shrouded, there are other indicators.

Romney’s Tax Disclosure Forms Overdue

EDWARD D. KLEINBARD, professor of law, USC’s Gould School of Law, and PETER C. CANELLOS, former chair of the New York State Bar Association Tax Section.

This op-ed originally appeared at CNN.

By announcing that he will release no further tax returns beyond his 2010 and 2011 returns, Mitt Romney appears to have exempted himself from the proud bipartisan tradition of presidential nominees displaying genuine financial candor with the electorate.

What is more, his disclosure to date is in the wrong direction: It is the release of Romney’s past returns, not his current ones, that matters.

How to Avoid False Convictions

DAN SIMON, professor of law, USC Gould School of Law.

This op-ed originally appeared at the Huffington Post.

Carlos DeLuna and Cameron Todd Willingham probably did not commit the crimes for which they were put to death by the state of Texas. In-depth inquiries into their convictions revealed bungled investigations, poor recordkeeping, mistaken eyewitness testimony, spurious forensic testimony and misconduct by law enforcement personnel, among other