Was his rate only 13%?
According to an article from Businessweek on 8/16, Romney said “I did go back and look at my taxes, and over the past 10 years I never paid less than 13 percent. Every year, I’ve paid at least 13 percent, and if you add, in addition, the amount that goes to charity, why, the number gets well above 20 percent.”
I wrote about Romney’s tax rate previously (please read here). However, it is worthwhile to summarize again.
—Line 38: Adjusted Gross Income (AGI) $20,901,075
—Line 61: Total Tax $3,226,623
—Romney’s effective tax rate: 15.4%
However, if you factor in the amount that he gave to charities:
—Line 19 of Schedule A showed a charity gift amount of $4,023,572
And if you deduct this amount from the AGI, then his effective income was $16,877,503.
Effectively, he paid $3,226,623 tax on $16,877,503—i.e. an effective rate of 19.1%.
Most of Romney’s income came from dividends and capital gains—i.e. from his hundreds of million invested in the private industry producing millions of jobs.
The incomes of these companies were taxed effectively at 20% or more.
Hence, Romney already paid effectively 20% corporate taxes before getting his dividends/capital gains from which he paid another 15%—this is called double taxation.
Bottom line, if you add the taxes paid at corporate level and individual level, Romney paid effectively over 30%.
Percentage or Amount
More importantly, his investments help keeping the private industry going in this country—keeping most people, myself included, employed.
Furthermore, he paid $3,226,623 in the year of 2011.
What was your federal tax amount in 2011? Mine was just thousands.
And yet, we all can use the same roads, bridges, peace, freedom and many other good things that are provided by our taxes—well, whatever left after Washington D.C. wasted.
Prove it—Obama team said
In 2008, people asked Obama to release his birth certificate to prove he was born in the US—which is a requirement for presidency. He did not.
Now, he asked Romney to “prove it” by releasing tax returns—which is not a requirement for presidency.
How hypocritical is that?