Wednesday, January 25, 2012

Mitt Romney's One Percent World

Mitt Romney's release of his 2010 tax return has further pullback the curtain on  the intense income and wealth disparity in the United States.  As pointed out in the Quotation-for-Today post, Romney utilized foreign bank accounts as part of his wealth management strategy; the complete nature of that strategy is yet to be known. 

Across the jump, an article that examines Mitt Romney's 2010 tax return provides clues as to how Romney "earned" his income while "working" at Bain Capital.

Dave Johnson (a fellow at Campaign for America's Future and a senior fellow at Renew California), using information provided in the public disclosures of the Carlyle Group, provides some clues about Romney's "earned" income.  The Carlyle Group, a private equity firm in the same vane as Bain Capital, disclosed the earnings of its partners as part of its efforts to become a public corporation.

Johnson further discusses how the United States tax code favors unearned income (i.e., capital gains and dividends that make up the bulk of income for the one percent like Romney) over earned income from working as a teacher, automobile assembly worker, waitress, secretary, etc..  Additionally, the U.S. tax code, via the carried-interest tax loophole, provides special breaks for private equity partners.

You can read Dave Johnson's complete article by following the link enclosed below.

Johnson, Dave. "Why Does Mitt Romney Want to Keep His Tax Returns From the Bain Years Under Wraps?" AlterNet 24 January, 2012: online edition.

Related information:

Exempli Gratia's Quotation for Today

Campaign for America's Future

Renew California

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