GOP gubernatorial candidate and millionaire venture capitalist Bruce Rauner has used various accounting maneuvers to trim his income tax bill, according to a Chicago Tribune analysis of IRS data. In recent years, Rauner's tax rate on much of his earnings was 15 percent, which according to the newspaper is "less than half the top federal rate for the wealthy."
Among other accounting strategies, Rauner used a maneuver to slash his taxes on investment fees that went to GTCR, a private equity firm he headed until 2012. This fee waiver tactic, which the tax code permits, is facing closer inspection by the IRS. Learn more about the accounting strategy here.
From 2010 to 2012, Rauner reported to having an income of $108 million. Over the same time period, the venture capitalist paid federal taxes totaling $20.7 million, the newspaper's analysis showed.
"My income is based upon a whole lot of things. It's capital gains through carried interest. It's through management fees I get across all the funds," Rauner told the Chicago Tribune.
"I've been a very large owner in every GTCR fund over 32 years. I also have other personal investments, some of which generate ordinary income of various types, some of which generate capital gains, some of which generate interest income," he added. "Breaking apart all that detail is hard to do."
Click through for more on the newspaper's report.