Mitt Romney’s Taxes and True Reform
Are four levels of taxation, topping out at 50 percent “fair” enough for the left?
Heritage Foundation Mike Brownfield, Bio and Archives--January 26, 2012
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How many times should your money be taxed? One time? Two times? Three times? Four? Sounds like a ridiculous proposition, but that’s the true story of capital gains taxes in America, and it’s one that’s not being told in the continuing debate over Governor Mitt Romney’s taxes.
For more than a week, the media has focused on the subject of just how much Romney pays in taxes. On Tuesday, the governor released his tax returns indicating that he paid about 15 percent in taxes last year. At first blush, that sounds like a low rate, especially considering that Romney is admittedly worth millions. But as with all things in politics, there is more to the story. As most Americans know, marginal individual income tax rates in America range between 15 and 35 percent. However, Americans making money from investments typically earn dividends. They face a lower rate to reduce the tax barrier to investing and growing businesses. For Americans in the lowest two income brackets, the tax rate on dividends is zero. For all the rest, the dividend tax rate is 15 percent — hence Romney’s rate.
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Heritage Foundation——Bio and Archives
The Heritage Foundation is the nation’s most broadly supported public policy research institute, with more than 453,000 individual, foundation and corporate donors. Heritage, founded in February 1973, mission is
to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense.