Romney pays 14.1 percent in taxes

Mitt Romney finally released his tax returns this week, along with other documents, to apparently address criticism that he was not being open about his prior financial affairs.

The verdict? Nothing surprising. He paid $1.9 million in taxes in 2011 and made $13.7 million, which amounts to a 14.1 percent effective tax rate. Directly dividing the figures, the rate is something like 13.87 percent. If 14 percent sounds low, you would be right. Most people that I know pay an income tax rate of 20-25 percent, depending on the state in which they live, but Romney isn’t most people. Most of his income comes from long-term capital gains, not income taxes, the latter of which, is taxed at a lower rate.

The Romneys also donated about $4 million to charity, which amounts to be 30 percent of their income. The couple claimed only $2.25. According to this article from NBC News:

That means the Romneys voluntarily paid a higher tax rate than they were legally required, which the campaign said they did in order to stay consistent with Romney’s pledge to never play less than a 13 percent tax rate.

Never pay less than 13 percent? Really? I don’t see how you could look a lower- to middle-class voter square in the face and claim that you are being so humble as to declare you are going to pledge not to pay at least 7 percent less than most Americans pay and be taken seriously. How about a pledge that you are going to be pay your fair share to society, a la Warren Buffet, and pay 30 percent? Nah, that wouldn’t be right. Romney needs the money. Long live trickle down economics.

Enhanced by Zemanta