A Project of Mount Rexmore Progressive Resource Center, a California Non-Profit Corporation, Rexmore.org

Tuesday, January 24, 2012

And this is why the rich shouldn't pay 3% more in taxes?



1/24/2012--L.A. Times...http://www.latimes.com/news/politics/la-pn-romney-releases-tax-returns-20120124,0,4945167.story

Republican presidential candidate Mitt Romney and his wife Ann paid $3 million in federal taxes in 2010 on nearly $21.7 million of income derived from a vast array of investments, amounting to an effective tax rate of 13.9%, according returns released by his campaign Tuesday.

In addition, the Romneys expect to pay $3.2 million on $20.9 million of income for the 2011 tax year, for an effective rate of 15.4%.

That’s substantially lower than the top 35% marginal tax rate on wages and salaries -- and much lower than the rate paid by his political rivals. President Obama paid an effective tax rate of 26% in 2010, while former House Speaker Newt Gingrich paid a rate of 31.6%. Experts say Romney benefits from a tax code that allows investors to keep more of their income than wage earners, particularly investors in the rarefied world of private equity.

Even among his wealthy peers -- a cohort that particularly benefits from the lower capital gains rate -- Romney’s rate is below the average 18.5% effective tax rate paid by the richest 1%, according to the Tax Policy Center...

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