Romney Rakes In Millions From Bain Yearly
He benefits from deals that led to massive layoffs: NYT
By Matt Cantor,  Newser User
Posted Dec 19, 2011 7:28 AM CST
Republican presidential candidate andformer Massachusetts Gov. Mitt Romney speaks during a town hall meeting at Memminger Auditorium, Saturday, Dec. 17, 2011, in Charleston, S.C.   (AP Photo/Rainier Ehrhardt)

(Newser) – When Mitt Romney has been challenged over layoffs tied to Bain Capital's private equity deals, he's pointed to his 1999 departure from the firm he helped found. But even though he has technically left his old job, he's still reaping the benefits—to the tune of millions of dollars a year, the New York Times reports. The income is thanks to a deal Romney made just before exiting the firm, which brings him a portion of its profits.

Per the agreement, Romney was to reap cash from every new fund or venture his partners launched through February 2009; the Times reports an eventual total of 22 funds, more than twice the number he held a share in before leaving. With some of those deals ongoing, Romney continues to benefit from Bain's work—and has profited from deals involving, for example, KB Toys and Clear Channel, which each led to thousands of layoffs. What's more, he likely enjoys a 15% capital gains tax rate on the Bain money, compared to the 35% he'd pay on normal income. A campaign rep defended Romney, calling the arrangement "a typical market deal." Click to read the entire piece.