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Mitt Romney Paid 30%

Steve

Well-known member
Mitt Romney Paid 30%, Not 13% In Federal Income Taxes

“Properly calculated, my tax rate was about 30%.”

There are two reasons that the Romneys’ tax bill is below 15%. According to their 2010 tax return (the latest available), Mr. and Mrs. Romney reduced their taxable income by the $3 million they gave to charities.

The second and most important reason is the majority of the Romneys’ income is taxed twice – first at the corporate level, and a second time when they report it on their personal income tax return.

In the case of the Romneys, it was taxed at 35%, the top marginal personal income tax rate.

The Romneys also reported $4.9 million in ordinary dividends, of which $3.3 million qualified for the 15% tax rate. Unlike interest payments, corporations may not deduct dividends from their income. Dividend income therefore is taxed twice, first at the corporate level, and then again when it is reported on an individual’s personal income tax return.

A rigorous economic analysis would use the top marginal tax rate because that is the rate that affects economic decisions. However, for the purpose of this analysis, a reasonable estimate would use the average U.S. corporate tax rate which, over longer periods of time, has been 25%.

Based on a 25% tax rate, for every $133 a corporation earned, it had to first pay $33 in federal income taxes before it could distribute $100 in dividends. Next, on every $100 of dividend income received, the Romneys paid an additional $15 in taxes. The combined tax of $48 totals out to a 36% rate on dividend income ($48/$133), which approximates the top personal income rate imposed on interest income.

Far from being a tax preference for the rich, the 15% tax rate on qualified dividends simply adjusts for the double taxation of dividends. A proper calculation would therefore add to the Romneys’ income and tax payments the amount of taxes paid at the corporate level on the dividend income they received.

It is not clear if all of the $4.9 million of dividend income reported on the Romney’s tax return, or if only the $3.3 million of dividends that qualify for the lower 15% tax rates, were subject to this double tax on dividends. To avoid over-stating the case, we will use the lower, $3.3 million of dividend income to make the adjustment for the double tax.

Using this amount and the 25% corporate tax rate implies that the Romney’s adjusted total pre-tax dividend income and total tax liabilities should each be increased by $1.1 million to $4.4 million. That would increase the Romney’s total tax bill to $4.1 million, or just below 18% of their now higher total income. Interestingly, that is virtually the same as President and Mrs. Obama’s average federal income tax rate.

But, the adjustments do not stop there. The tax on capital gains, too, is a double tax. To see this point, imagine a 25% corporate tax rate were imposed where it had not existed.

In such a case, the owners’ share of future profits would fall by one-fourth, to $75 on every $100 of profits from $100. All else the same, the value of the asset, which reflects the discounted present value of all future after-tax profits, also would be expected to fall by one-fourth. In the same way, the capital gains realized by the Romneys have been reduced by the 25% federal corporate income tax on the implied increase in future profits.

Thus, the Romney’s total income and taxes paid must also be adjusted up by 33% (1.33-(.25*1.33)=1) of the amount of their $12.6 million in capital gains income, or $4.2 million. After this adjustment, the Romney’s “Adjusted Total Income” is $27.0 million, and their “Adjusted Total Federal Income Tax Payments” are $8.3 million, $5.3 million more than reported on their tax return and 30.7% of their Adjusted Total Income.
http://www.forbes.com

Maybe President Obama should paid his fair share... instead of taking the foreign tax credit? or stop misleading the people..
 

hopalong

Well-known member
BUT BUT BUT oldtimer found a comedian that claimed differenly and we all know pldtimer would never purposely try to mis lead us :roll: :roll: :roll:
 

hopalong

Well-known member
Steve said:
oooh, the sweet silence of a liberals with nothing to say.... :lol:

the two main liberals on here seldom have anything to say say is worth listening to... just a bunch of unsubstanuated garbage..

EH :D
 

Tam

Well-known member
Don't worry neither of them are ignoring you guys, they are just distracted trying to find yet another Leftwingnut bias media source that claimed Ryan Lied and Romney killed another woman. :roll: Or maybe they are looking for Reid's source that claimed Romney didn't pay any taxes, Not that they care if there was a credible source to the rumors. They are facts to them if a Dems spews them.
 
A

Anonymous

Guest
New York Attorney General Subpoenas Bain Documents

In a move that could embarrass Mitt Romney, New York Attorney General Eric Schneiderman has issued a subpoena for documents from Bain Capital, the private equity firm founded by Mitt Romney, and other companies to see if they illegally converted management fees into other forms of income that are taxed at a lower rate. An illegal conversion might have deprived New York State of tax revenue, in which case Schneiderman has a legal basis for pursuing the case. Nevertheless, it is hard to imagine that the politically ambitious Schneiderman is unaware of the broader political implications of targeting Bain Capital two months before the election. He is also no doubt aware that the Attorney General's job was Eliot Spitzer's springboard to the governor's mansion. That building is currently occupied by a Democrat, Andrew Cuomo, but could become vacant on Jan. 20, 2017 if Cuomo is elected President next time. It is like playing three-dimensional chess.

Maybe we will find out why Mitt doesn't want to release any more tax records :???:
 

loomixguy

Well-known member
Oldtimer said:
Maybe we will find out why Mitt doesn't want to release any more tax records :???:

Why doesn't your Dear Leader release his college transcripts, passport info, selective service info, SSN info, etc., etc., etc.? What passport was he traveling under when he visited Pakistan in the 80's?

Could he be hiding something, too??

He can't run on his record of utter failure, so do the libtard bait & switch technique of changing the subject by wondering about Romney's tax records.

Old Whiskeybreath, even though you are a prime candidate for a brain transplant, it wouldn't do you a bit of good..... :roll: :roll: :roll:
 

Larrry

Well-known member
obama-is-nuts1.png



Did ya hear ot went to the doctor because he had been putting on so much weight. The doctor recommended that he cut out the crow.
 

Steve

Well-known member
Oldtimer said:
New York Attorney General Subpoenas Bain Documents

In a move that could embarrass Mitt Romney, New York Attorney General Eric Schneiderman has issued a subpoena for documents from Bain Capital, the private equity firm founded by Mitt Romney, and other companies to see if they illegally converted management fees into other forms of income that are taxed at a lower rate. An illegal conversion might have deprived New York State of tax revenue, in which case Schneiderman has a legal basis for pursuing the case. Nevertheless, it is hard to imagine that the politically ambitious Schneiderman is unaware of the broader political implications of targeting Bain Capital two months before the election. He is also no doubt aware that the Attorney General's job was Eliot Spitzer's springboard to the governor's mansion. That building is currently occupied by a Democrat, Andrew Cuomo, but could become vacant on Jan. 20, 2017 if Cuomo is elected President next time. It is like playing three-dimensional chess.

Maybe we will find out why Mitt doesn't want to release any more tax records :???:

Just another political witch hunt , no doubt orchestrated by the (Unseal my opponents records cause I can't win) Obama team ..

they have used tactics such as this since day one of his career...

even if over the last 12 years Bain did outright illegal activities Romney wouldn't have been involved... he has had a blind trust

do you know what a blind trust is?
 
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