LOOPHOLE

Romney Gave Stock to Mormon Church

Here's one possible reason Mitt Romney's tax rate is so low. He paid his tithes to the Mormon Church using stock acquired cheaply through his old company, Bain. As a member of the Church, Romney is required to donate 10 percent of his income, but he chose to pay his tithes in stock that he was able to get a deep discount from companies Bain was restructuring. Donating stocks instead of selling them and donating cash would help Romney avoid taxes twice: he would pay no capital gains on the stock, and then he'd bee able to deduct the value of the donated stock from his taxable income.