After announcing earlier this month that he is paying a low tax bill, candidates and the media soon started to wonder exactly how much is Romney paying per year in taxes. Mitt Romney’s own statement he pays a low cost tax increased the political pressure to reveal the truth, particularly since he is one of the top earners in the nation. Yesterday, the Republican responded to attack and came clean about his tax bill.
Mitt Romney’s campaign officials have released the returns. According to the data, Republican presidential candidate Mitt Romney earned $21.6 million two years ago and 13.9 percent of that went to the government in income taxes. So, yes, Mitt Romney does have a preferential rate when it comes to paying his income taxes, but there are several reasons to justify it.
During the debate in Florida, Mitt Romney said, referring to his tax returns: “Oh, I’m sure people will talk about it. You’ll see my income, how much taxes I’ve paid, how much I’ve paid to charity. You’ll see how complicated taxes can be”.
By releasing the returns, Romney’s hope is that candidates will back down. However, the whole discussion regarding Romney’s tax statements reminded the media, politicians and voters alike about the special tax treatment offered to high earners from investments. This is exactly what the Obama administration is talking about and trying to change.
Before throwing mud at Romney for paying an income tax that is almost in line with the amount most Americans pay, remember that this is a benefit the government affords to certain high earners. Warren Buffett is among them.
Mitt Romney gets most of his bulk income from investment profits, dividends and interest. For instance, the former Massachusetts governor made more than 50 percent of his income from capital gains and dividends, which the government taxes at 15 percent. The top rate for ordinary income is 35 percent.
To make things a little bit clearer, according to data from the IRS, Mitt Romney made $33,048 in less than a day. At the same time, in a week, Mitt Romney made about $380,534 in adjusted gross income.