The tax rates Romney reportedly pays could reignite the national debate over the fairness of the tax code, not to mention raise the outcry from members of the Occupy Wall Street national movement.
Romney, the leading Republican presidential candidate, indicated he will pay $6.2 million in taxes on a total of $42.5 million in income over the years 2010 and 2011. He paid 13.9 percent tax in 2010 and anticipates that he will pay a 15.4 percent rate on returns for 2011. Under the U.S. tax code, capital gains are taxed at 15 percent, compared with a top tax rate of 35 percent for wage earners.
Romney’s campaign officials reiterated that his tax rate is derived mostly from income via investments that are held in a blind trust. Romney’s holdings include an undisclosed amount in funds based in the Grand Cayman Islands and other overseas entities.
Romney conceded to intense to disclose information detailing reportedly vast wealth. The revelation comes just two days after Romney was thumbed decisively by rival GOP candidate Newt Gingrich in the South Carolina primaries. The South already had indicated, according to political pundits, varying degrees of distrust of the Mormon candidate and former private equity executive who was governor of Massachusetts. It will be interesting how this will color the ensuing debates as well as impact the Florida primary results on Jan. 31
How Romney chooses to discuss his taxes — or not — will also be of great interest to political observers and the electorate. Romney possesses an estimated net worth of between $190 million to $250 million, and therefore is among the wealthiest Americans ever to seek the presidency.
However, Romney has contributed millions to charity and his church, giving $7 million in charity over the two years, much of it going to his Mormon church. That comes to 15 percent of the Romney family income over that two-year period.
—terry shropshire
