Though Newpol is skeptical that lower capital gains taxes have this desired effect, he said that the tax code has long incorporated preferential rates for capital gains. The current rate came about in 2003, when Pres. George W. Bush implemented a package of tax cuts that included a provision to lower the capital gains tax from 20 percent.
Romney’s wealth also made it easier for him to take certain deductions, such as the one for charitable donations. In 2010, the presidential hopeful and his wife gave away $3 million, thus reducing their taxable income by that sum. They also claimed a deduction of nearly $900,000 for state and local taxes they paid.
