Plan B Forum

He has probably paid an effective federal income tax rate of about 15 percent in recent years, Republican presidential candidate Mitt Romney told reporters in South Carolina a short time ago.

Dogged by questions from his GOP opponents about his personal finances and when he will release his income tax returns, the former Massachusetts governor this morning confirmed some of what had long been suspected: Because he gets most of his income from investments, he pays less in taxes than he would if he was paid in wages. The top tax rate for upper income wage earners: 35 percent, as The Washington Post reminds us.

"Asked a press conference what rate he pays, Romney responded, 'What's the effective rate I've been paying? It's probably closer to the 15 percent rate than anything. Because my last 10 years, my income comes overwhelmingly from some investments made in the past, whether ordinary income or earned annually. I got a little bit of income from my book, but I gave that all away. And then I get speakers' fees from time to time, but not very much.' "

His definition of "not very much" may not fit with many Americans.' USA Today examined his financial disclosure forms covering most of 2010 and the start of 2011 adn found that he had earned "more than $362,000 in speaking fees."

Romney's confirmation about his effective tax rate is sure to bring up mentions by his liberal critics of the "Buffett rule." Named for billionaire Warren Buffett (who thinks the very rich should pay more in taxes), it's the observation that those who can classify their income as "carried interest" get taxed at a rate much below the rates paid by many of the less well-off.

As for when he will release his income tax returns, Romney implied last night that he might do so in April. Tuesday morning, The New York Times says, "Mr. Romney said that April's tax season seemed to be the appropriate month for such a disclosure, and that he was following 'tradition' from previous presidential races."

Update at 1:25 p.m. ET. Obama's Rate In 2010:

Now that we've had a minute to check back, we're reminded that President Obama and the first lady paid an effective federal income tax rate of 26.3 percent on their 2010 earnings of about $1.7 million (much of it from book royalties). We wrote last year that:


"The Obama's tax liability gave them an effective federal income tax rate of 26.3 percent. The top tax bracket is 35 percent but they were able to knock that down through $373,289 in itemized deductions.

"Much of those deductions came from the $245,075 the Obama's reported giving to charity, or 14.2 percent of their income. The largest single donation was $131,075 which they gave to Fisher House Foundation."

Also, Vice President Biden and his wife Jill had "gross income of $379,178 with $67,038 in itemized deductions. Their tax liability was $86,626, giving the Bidens a 22.8 percent effective federal income tax rate."

Liberty1 wrote:I'm paying attention, but not pissed off. Good for him.
Everyone should pay as little tax as possible.

dgs49 wrote:Anyone paying more than a quarter million in Federal Income Tax is paying ENOUGH.

Likewise, anyone who has more than a quarter million to live on after taxes has ENOUGH to live quite comfortably.

What matters most is what you have left as disposable income, not what you pay out in taxes.

To make a fraction comprised of the federal income taxes paid as the numerator and total income as the denominator provides information having almost no value

Liberty1 wrote:What is important is what you pay out in taxes.

Well, personally, I would MUCH rather pay a million in taxes and have a million left over to spend than pay a thousand in taxes and have twenty thousand left over to spend...but I guess that's just me..

Liberty1 wrote:Taking the fruits of someones labor or life, in order to provide benefit to someone else, is generally called slavery.

When your house is on fire, the fire department comes. When you are the victim of crime, the police and prosecution come. When you are charged with a crime, if you can't afford a lawyer, one is appointed to you

When you become unemployed through no fault of your own, you should be eligible for UE benefits

When you are destitute, you (and your children) should be eligible for public benefits.

there should be safe roadways and bridges available to get you there

When you need to be educated as a productive member of society, there should be decent K-12 education available to you at no cost.

These things promote the general welfare, and they are provided for in the Constitution, with the power to levy taxes to ensure their provision

dgs49 wrote:Again I say, we do not pay taxes in percentages, we pay them in dollars.