There’s much being said and written about Mitt Romney’s 13 percent tax rate.
Many are upset and outraged because they pay a higher rate than him, but there is a fundamental difference: Romney doesn’t have a job.
His “income” is made off of investments, which are taxed as capital gains. The capital gains tax rate is 15 percent. In 2010, Mitt Romney paid $3 million of his “income” in taxes to the federal government. No matter what the percentage that is, it’s enough.
Income taxes are different. They are withdrawn based on a graduated, progressive tax system with a top rate of 35 percent. The more you make, the higher percentage of your income you pay. Most workers pay income taxes. I do because I earn income from KTAR not from investments.
Are people mad at Romney because he didn’t write a check to the Treasury? Here’s a fact: no one pays more taxes than they have to. Not even President Barack Obama, whose effective tax rate in 2011 was 20.5 percent. His income was almost $790,000. With that amount of income, he should be paying the top tax rate of 35 percent. Why aren’t the same people complaining about Romney’s tax rate complaining about the president’s?
It’s because attacks on Romney’s tax rates aren’t really about taxes. They are about his wealth. He’s said to be worth somewhere around $250 million. The attacks are about trying to make Romney appear out of touch with the middle class. No one is accusing Romney of doing anything wrong.
In fact, there’s nothing illegal about Mitt Romney’s 13 percent tax rate, nor is there anything illegal with Obama’s 20.5 percent tax rate. Both rates are legal under America’s tax code.
Back in 1913, when the income tax amendment was adopted, there were 400 pages of tax code. As of last year, there were 72,536 pages. Quick math says 72,136 pages have been added in 98 years.
This tax code is so large there is no one on the planet can fully understand and comprehend it. There are 1.2 million tax preparers in this country. There are only 765,000 police officers. This is what the entire debate should be centered on: how vast the tax code is.
If it were up to me, the tax code would fit on one page not 72,536. There would be one rate, with no deductions, that everyone would pay, or there would be a national sales tax and no income tax.
If I had my way, this debate about who pays a higher or lower percentage wouldn’t matter and then maybe there could be a debate about something that actually does.
- The Pac-12 football season nears kickoff
- Tips to get ready for a pain-free golf season
- Protect your family with these 7 home security features
- How to train like an Olympic swimmer
- 2016 Olympics: A guide to must-see TV events
- The bride's guide to feeling your best on your wedding day
- Deciding when you need knee surgery
- Celebrating Fourth of July is much cooler in these AZ towns
- Top ten road trip bathrooms in America
- Six things causing a pain in your neck
- 5 things to make your summer move easier
- Three elements of a strong timeshare exit guarantee
- Stretches and exercises for carpal tunnel syndrome
- The best Major League ballparks have their own personality
- Comparing the best regular seasons: The '96 Bulls and '16 Warriors
- 3 Arizona road trips and the vehicles to get you there
- Colon cancer is preventable. Check these signs and symptoms to stay healthy.
- 6 of the biggest skin cancer myths
- Affordable small home makeover ideas
- Locals helping locals: 6 success stories you need to know about
- Sunscreen facts that could save your life
- 6 energy saving hacks for your home
- 5 tips for choosing a company to end your timeshare
- Overlooked water tips to save you money
- 5 of the most adored gentlemen in professional sports today
- The real danger of sitting at your desk
- Most surprising NBA playoff performances of the last 40 years
- 11 classic baseball movies you must see again
- Finally getting rid of fat: 3 methods that actually work
- 4 reasons cancer survivors should focus on food