Tuesday, January 24, 2012
And this is why the rich shouldn't pay 3% more in taxes?
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...