Wait. Full stop. Ann Romney's HORSE nets them a $77,000 tax CREDIT???

Jul 12 2012 Published by under General Politics

How any person in the US who makes under a MILLION DOLLARS PER YEAR can even remotely contemplate voting for this clown is a mystery to me. Complete and utter mystery.

Rafalca, the Romney's Olympics-bound dressage horse, nets the family a $77,000 tax credit, $2,000 of which, according to Current's calculations, is for what they spent on health care for the horse. The average American family only spends $1,557 a year on health care.

It is really a credit to our citizenry that we have not broken out the guillotine for the 1 percenters yet.

More Rafalca v. Regular Americans.

UPDATE: Phew, appears to be a standard business thing where the $77K is a "loss", not a tax credit. At least, by reading a bit of the commentary around the webs. They can subtract this loss from any future earnings they may get from this money-sink, fun-toy but they aren't getting a tax credit. That makes me a little less grumpy about it. But still. They can sink a cool $77K into this and not even blink....the comparison to the yearly expenditures of a family of four at the median in the US is still apt.

47 responses so far

  • Dude, you're only first hearing about this now? Try reading a fucken newspaper once in a while instead of spanking your monkey over fucken payline curves from before you were born.

  • Dave says:

    hahahahahaha!!!

  • Maybe the horse talks? That would be worth $77,000.

  • Alex says:

    Well, considering how low their tax rate is, the actual reduction in tax liability from a $77k "business loss" really isn't all that bad. So we should all feel totes better about this.

  • NoFair says:

    Oh dear-so unfair. If he can buy a million dollar horse, we all should be able to. Take the argument anywhere. John Smith owns a $2 million house-gee he gets to deduct more taxes than me from the mortgage he pays. One must pay the amount to get the deduction. Envy can be a nasty thing....once upon a time people grew up with dreams of being a millionaire. today you want to guillotine them? Stop worrying about what the rich do, and go do it yourself.

  • drugmonkey says:

    Wondering why normal people would vote for Romney for President is hardly saying "we all should be able to", NoFair.

  • Dave says:

    I don't think people will be voting for Romney this year, they will simply be voting for or against Obama. Sad but true.

  • Pascalelane says:

    How is a dressage horse a business instead of a pet or hobby?

  • Pascalelane says:

    I don't care what the Romneys buy; I'm just unclear why it's deductible.

  • drugmonkey says:

    if it wins the Olympics they can sell it for more than they bought it for?

  • Pascalelane says:

    So if I have a dog I'm training to be a Frisbee whiz in hopes of a commercial contract, is his vet bills a deductible business expense?
    Any tax law types reading this blog?

  • Physician Scientist says:

    Liberals: This is SOOOO unfair!!
    Conservatives: I've got to get me a horse!

    The true unfairness is the AMT. Until they fix the fact that there are two tax codes for the upper middle class, I can't get two worked up about the fact that a small subset of people get a weird tax break when there's a whole (10% of the tax paying population) paying proportionally much more than others.

  • Virgil says:

    I bet they get a huge write-off when it gets turned to glue. That'd be some pretty fucken cool glue though!

    But d'you know what'll lose Mittens this election? Obamacare! The stupid fuckwitte chose to put the name of his opponent and the word "care" in a portmanteau, and tried to make it sound bad. He should call it "Obamalovely" or "Obamafluff" instead.

  • Beaker says:

    On a related note, how does one amass an IRA worth $100 million when annual contributions are currently limited to $6000 and it used to be less? If I had put every cent of my IRA into Google from day one, I'd have abut 1% of the value of Rmoney's IRA. That don't make no sense.

  • Julian Frost says:

    Oh dear-so unfair. If he can buy a million dollar horse, we all should be able to.

    Careful not to get that strawman near any open flames, NoFair. Also, $77,000 is more than I earn in 2 years.

  • Pascale says:

    So my son and I were discussing this on the drive to work this morning. We have decided to start a new sport, Cat Dressage, so we can all deduct the expenses for our feline companions.
    And dressing cats up for precise movement competitions should be hysterical.

  • John says:

    What planet do you live on? Have you not been paying any attention at all? The rich people control the government. Of course they control the tax laws. EVERYONE except them says they should pay higher taxes, get less subsidies and unfair breaks etc. And yet it is not reflected in the government's actual output/behaviour. Ok not everyone, but everyone that is thinking for themselves instead of just dancing to their propaganda tune.

  • John says:

    Also beaker, careful not to confuse what you earn with what you get paid. Most people earn a lot more than they get paid, just look at the gdp divided by the working population and that is obvious. Plus all the detriment caused to us by being forced to follow *their* rules for their benefit alone is their fault and so they owe us for that etc.

  • drugmonkey says:

    Or maybe they could sell it to one of those fancy French eateries. Olympic winner tartare?

  • nosoupforyou says:

    Most people earn a lot more than they get paid, just look at the gdp divided by the working population and that is obvious.

    If it's any consolation, that gdp figure is massively inflated by bullshitte imputations (own your own home? Let's impute the market rental value to the gdp, etc). The fact that the fudge factors corrections that get added to the official government economic statistics are of the same order as the published results (non-farm payrolls comes to mind, in particular) should be enough to clue most scientists into the notion that the whole shebang is completely rigged anyway.

  • Beaker says:

    John--sure I agree with you but I think you missed the point. I specifically brought up the IRA, which has strict limits on the size of the annual contribution. Show me some an investment mechanism and the math that gets a person from an annual contribution between 2 and 6 thousand dollars to grow that investment to 100 million dollars over the course of Mitt's adult lifetime. If such an investment mechanism exists, I want some o dat.

  • drugmonkey says:

    There are some funky investment conversions you can do. IIRC. That may explain it.

  • Beaker says:

    The dirty details are laid out here. Clear as mud. The "investment conversions" seem to have taken the form of "big-ass overseas tax loopholes and shelters for the super-rich." It looks like he took some earnings from Bain, hugely under-valued them, and then deposited them in an IRA. These "smart investments" produced rates of return that must have been thousands of -fold. And if it was a Roth IRA, then that increased value is all tax-free. Neat trick. But we don't know exactly because Mitt ain't telling.

  • drugmonkey says:

    Nice trick!

  • becca says:

    Beaker- Roths aren't supposed to be available for people with AGIs above a certain line (I think 122,000 single/179,000 married). I think there's not a limit on traditional IRAs if you *aren't* covered by a retirement plan at work. I'd guess it wasn't a Roth, but given the voodoo of his accountants, god only knows.

    Pascale-HA on cat dressage! I want in!

  • climber777 says:

    It's not that he can afford an expensive horse. That isn't the point.

    He constantly rails against people who "want free stuff" from the government and then takes a $77000 tax break for his expensive horse.

    Maybe it's time to take a real close look at how the man got rich as well.

    If it's not all above board and legal, maybe you could re-examine how good he'll be for our countries economy.

    If your answer is that they all have secrets and do shady things, forget it. I don't want any people like that leading our country, because they're going to be looking out for #1 above all else.

  • Jgalt says:

    So- a $77,000 expense and a resulting $50 tax reduction is what everyone is crucifying ROmney for compared to our current economic crisis? laughable!
    Elect O to a second term- who will he blame next? Himself? LOL

  • Julian Frost says:

    Jgalt, he is getting a $77,000 per annum tax reduction. Read for comprehension. Also, climber777 shows why we're so upset.

  • Kenni Judd says:

    Beaker, there's no limit on how much one can contribute to a traditional IRA. The only limit is how much of it you can deduct. If I had an "extra" million in after-tax (already-taxed) money laying around, I might well put a chunk of it into an IRA -- at least the earnings on it would be tax-deferred.

    Alternatively, it might be something other than a traditional IRA. In a SEP IRA, for example, a person's business can contribute up to 25% of the person's salary (up to $50K for 2012, it was $49K in 2011). If Bain Capital did that for Romney throughout his tenure, that could easily exceed $1M by now.

  • Kenni Judd says:

    Jgalt and Julian: In Mitt's tax bracket (33%, I'm pretty sure), a $77K deduction results in a tax decrease of not quite $25.5K.

  • Beaker says:

    Kenni--thanks for clarifying my simple minded ideas about IRAs. However, the government rules clearly state annual contribution limits for both types of IRA (currently $6000/year). DM and others have pointed out that one can get around this limit by doing a funky conversion from other accounts. Or, perhaps SEP IRAs are different? I thought the IRA program was designed to reduce the burden on Social Security and other traditional pensions--not to create tax havens for the super-rich. Not that I am implying that Romney did anything illegal. Having a law degree and a business degrees is good training for figuring out the loopholes.

    OK, so $1 million is not so unusual. But what about $100 million? I read somewhere that Zucherberg also has $100 million in his IRA, so perhaps Romney finances ares typical for the super-rich.

  • drugmonkey says:

    Kenni-

    I *think* the deduction is only allowed for that particular business. It has to show income for this adjustment to be relevant. It can, to my understanding, be passed forward to future earnings which is why it is listed. I could be wrong though....much I don't understand about tax strategy for the ultra rich like Romney.

  • Beaker says:

    Here's how Zucherberg did it. And note that IS a Roth IRA, thus its value is tax-free.

  • Jonathan says:

    No, Jgalt is correct, Romney only saw a $50 reduction in his taxes, the IRS did not let him deduct the other $76,950.

    http://www.buzzfeed.com/nycsouthpaw/romneys-olympic-dancing-horse-didnt-get-him-much

  • drugmonkey says:

    Right Jonathan. Unless, as per the above discussion, it wins the Olympics and they sell it to some French bistro for several million clams. Then the loss can be deducted from the profit of the horse business.

  • Lisa says:

    I think you all are a bunch of jealous, petty morons! I can't believe what I'm reading here. First, for all you democrats: Your anointed one, Obama, is part of that 1% you seem to criticize so much. and second, who cares! Good for them for being a sucess. That 1% pays 38% of the nations taxes! the top 10% Pay 71%, and the bottom 50% on pay 2%! Talk about not fair! You bottom 50% whiners need to check yourself. Also, that top 10% more than likely are the ones employing you and providing you with a paycheck! You should be grateful and you should thank them! Life is not fair. But anyone, anyone, can make it in this country! Better odds than anywhere else in the world! Thats what makes this country great. I didn't make. I didn't try hard enough, but I'm thankful for the ones who did. You people are petty boobs!

  • hbomb says:

    you're ALL missing the point! DOES the horse talk or NOT????

  • Wendy says:

    First off you probably make more than me if you are employed at anything above burger flipper. I have an honest job in industry that I have held for 14 years. One mitigating factor is that the local cost of living is extremly low.
    But my health insurance cost ME about $1500 a year. My husband's diabitis alone runs another $1500 or so. If you had a real job you might know things like that. Government healthcare involvment is the reason I will not be able to afford healthcare much longer.
    But I am glad the Romneys have a bizillion dollar horse. Maybe he can do for America what he did for himself. And maybe the donation of that horse for the olimpics, who they spent several tens of thousands of dollars just to train, will win America a gold.

    Whiners

  • Lana says:

    He should not get a tax credit for that dang horse. Since he is so dang rich, he should pay for his toy himself.

  • David says:

    The richer you are, the more expensive your toys. Does anyone here own a boat, motorcycle, lake home, RV or any other toys? If you do and could write them off as a tax deduction, wouldn't you? So long as they are paying their taxes as prescribed by law, I'm ok with this. He made his money on his own. His inheritence from his father was given away to charity. People seem to dislike him because he is rich and they don't like the business he did it in. Maybe you are envious. Look at Obama's wealth. He has written books that truly show he doesn't like America and would like to see a Socialist economy. Find out why he or Michele can not practice law any more. It's not because he is president. Their licenses were taken back before that. If you swallow everything the main-stream-liberal media feeds you, you are simply.............stupid. Nicest word I could think of. Get out and work hard. Come up with an idea noone else has had. Invent something. Start a business. Get into public service and change things. Write your representatives. STOP BITCHIN' !

  • Justin says:

    "Oh dear-so unfair. If he can buy a million dollar horse, we all should be able to. Take the argument anywhere. John Smith owns a $2 million house-gee he gets to deduct more taxes than me from the mortgage he pays. One must pay the amount to get the deduction. Envy can be a nasty thing....once upon a time people grew up with dreams of being a millionaire. today you want to guillotine them? Stop worrying about what the rich do, and go do it yourself."

    Do you just run around just arguing gigantic strawman like a colossal douche? Who said everyone should be able to afford a million dollar horse.

    I am more curious why someone who wants to cut welfare to the poor is taking a taxbreak that amounts to far more than any one family earns in welfare in a year. i guess it's ok for him, but not for the poorest in our nation?

    I guess this is why people with no understanding of the economy can say absolutely retarded thing like "Go out and do it yourself" with no grasp that our entire system has been crafted by both parties to stomp on any form of entrepreneurship. The chief means of doign what you recommend they do.

  • Calixto says:

    It is amazing, how people out of hate, critizice Mitt for things that can do all americans (there is not a law prohibiting somes to make millions) and applying the law that is common to all americans.

    Using ignorance (I do not know how he can have millions in the IRA, please learn how it is possible!!!, including rolling over 401k) to discredit Mitt does speak well about yourself.

    In a nutshell, Mitt has done many others do (regardless party affiliation), what all of us would do, provided we make those millions, under the law has been designed by the Congress to all of us.

    On the other side, if you believe that Mitt, or any man, is able make people lose their jobs, you are drinking something weird, and again, out of ignorance, do not understand that everyday many companies Fails.

    When Tom Brady is playing, there are many other that were left behind. It is not TOm's fault, it is not Partriot's owners' fault.

    Please, do let ideology distort human being and society as they are

  • Julia says:

    I am holding my horse off my taxes! I guarantee the IRS will not let me do it!! If i was a multi-millionaire they would!!

  • Kbruno says:

    Yep, nobody likes either candidate...This conversation shows it.

    Don't vote for either...Vote Ron Paul! ;)

  • I have to agree that for most people, the choice is "Obama" or "Not Obama".
    All though there is still time for Romney Mania to sweep the nation!
    http://www.theonion.com/articles/romneymania-sweeps-america,27155/

    I've got a fever, and the only cure is: More ROMNEY! (Or not)

  • daniel says:

    BEWARE OF THE LIARS
    the rich do not to pay their FAIR SHARE OF TAXES. they plan the war on a credit card and say " let the middle class pay for it.
    OUR SOLDIERS WENT TO WAR , BUT THE RICH STAYED H-O-M-E. ie romneys , boys to men and ann romney takes her tax credit of 77,000 for her horse.

    ROMNEY's & RICH AND THE POWERFUL SINCE THE 1980' s have not paid their fair share of taxes. The Romney s and REPUBLICANS plan to take our middle class HOME MORTGAGE DEDUCTIONS AWAY AND REPLACE IT WITH with their lies. WE WILL NOT STAND FOR THIS ANIMAL FARM BLANTANT attack and DECEIT from these liars..

    P.S. THE TALKING POINT FOR THESE LIARS AND TREASONIST ARE " OTHER COUNTRIES DOESNT NOT HAVE home mortgage deductions "
    MY ANSWER IS THAT "YOU'RE CORRECT. WE ARE NOT THE OTHER COUNTRIES WE ARE THE MIDDLE CLASS , CITIZENS OF THE UNITED STATES OF AMERICA.AND WE SAY " NO ! NEVER.! "WE CAN READ AND ADD.
    YOU CAN FOOL SOME OF THE PEOPLE ALL OF THE TIME , BUT NOT ALL OF THE PEOPLE ALL OF THE TIME..

Leave a Reply