Mitt Romney's new rich-guy problem

He's done a Cameron: Got in trouble for a horse.

Mitt Romney's done a Cameron. He's in trouble because of a horse.

The New York Times:

Mitt Romney and his wife, Ann, who plan to attend the opening of the Olympic Games in London this summer, now have a personal rooting interest in the event. Jan Ebeling, Mrs. Romney’s longtime riding tutor, and his horse Rafalca, co-owned by Mrs. Romney, earned a berth on the United States Olympic dressage team on Saturday.

Mitt Romney owns a horse. Not just any horse – an Olympic standard dressage horse. You know dressage – it's that horse-based sport which is second only to polo in its near-total lack of relateability to your average American voter.

The Romneys actually declared a loss of $77,000 on their ownership of the horse in 2010, and according to Matt Yglesias, the horse-related tax code is more complex than us non-horse-owning mortals could comprehend:

The way this works is that [the horse's owners] have together formed a corporate entity called "Rob Rom Enterprises LLC" which owns Rafalca and pays for his upkeep. The Romneys reported $77,731 in "passive losses" related to their investment in Rob Rom Enterprises but of that their account only deemed $50 to be actually eligible for deduction. The forms don't explain the thinking behind that, but it's probably because losses from your horse corporation can't be used to offset unrelated income. If Rafalca had brought in more money, then Rafalca's care and feeding expenses could be deducted from that income, but in 2010 Rob Rom Enterprises doesn't seem to have had much income.

That said, now that Rafalca is heading to the Olympics, he's likely to suddenly start bringing in a lot more money, which that $77,000 can be offset against. So at some point, Romney probably will end up paying less taxes because of a horse.

Horses: Not good for your reputation as a world-leader (unless you're Putin)

A dressage horse (and rider). Not Romney's dressage horse, sadly. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Jeremy Corbyn appoints Shami Chakrabarti to lead inquiry into Labour and antisemitism

“Labour is an anti-racist party to its core," says leader.

Jeremy Corbyn has announced plans for an independent inquiry into antisemitism in the Labour party.

The review – led by Shami Chakrabarti, the former director of the human rights campaign group Liberty – will consult with the Jewish community and other minority groups, and report back within two months.

Its vice chair will be the director of the Pears Institute for the Study of Anti-semitism, Professor David Feldman.

The move follows a week in which the party suspended Bradford MP Naz Shah and former London mayor Ken Livingstone, amid claims that both had made antisemitic remarks.

But Corbyn told the Guardian: “Labour is an anti-racist party to its core and has a long and proud history of standing against racism, including antisemitism. I have campaigned against racism all my life and the Jewish community has been at the heart of the Labour party and progressive politics in Britain for more than 100 years.”

He added that he would not see the results of next Thursday's local elections as a reflection of his leadership, and insisted that he would not be held to arbitrary measures of success.

“I’m keeping going, I was elected with a very large mandate and I have a huge responsibility to the people who elected me to this position," he said.

Jonn Elledge is the editor of the New Statesman's sister site CityMetric. He is on Twitter, far too much, as @JonnElledge.