Friday, January 27, 2012

Putting Mitt Romney's Low Tax Rate In Perspective

The effective tax rate for Mitt Romney was reported to be 13.9 percent. Since many people do not know their effective tax rate, the article highlighted in this post will help you put Romney's low effective tax rate into perspective.  I strongly believe, based on personal experience, the effective tax rate that most Americans pay is equal to or higher than Mitt Romney's tax rate.

James B. Stewart, columnist for The New York Times, writes about his personal tax rate and he reports that he pays a much higher rate than Mitt Romney.  Mr. Stewart writes that his 2010 returns showed that he paid 24% of his adjusted gross income in federal taxes, and he points out that he paid 37% in combined federal, state and local taxes based on his income.

The following statement by Mr. Stewart captures well the tax situation of many Americans:

It turns out that my individual circumstances are a near-perfect storm of punitive tax policies. Nearly all my income is earned, as opposed to capital gains, carried interest or dividend income taxed at a lower rate.

Mr. Stewart should have also mentioned that most Americans, unlike Mitt Romney, do not have bank accounts in the tax havens of Switzerland and the Cayman Islands.

To read Mr. Stewart's complete column on Mitt Romney's taxes, please follow the link enclosed below.

Stewart, James B. "Common Sense: Paying Far More Than 13.9%: A Taxpayer’s Lament." The New York Times 27 January, 2012: online edition. 

Related information:

Quotation for Today. Exempli Gratia 27 January 2012.

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