Romney first had to accumulate wealth. If it’s in the form of salary it’s taxed at 35%, if it’s partnership profits in Bain Capital, it’s 15%. Probably, Romney had a combination of both in his asset base. For sake of argument, let’s assume it’s an average of 20%. Since most of his income he reported was from dividends and capital gains, he paid 15%, plus the 20% already paid. Or, his true rate was 35%. He paid $3MM in taxes, more than Obama’s total income. What does this do to disqualify Romney as president?
The average middle class American is seeking income from assets today. Hence, the stock prices of solid companies paying decent dividends are going up. Where else does that average America invest? In an Obama economy, it’s not CD’s paying 1%, it’s not real estate, it’s not small cap stocks, it’s not foreign stocks, and it’s not short-term treasury notes. Pension funds, universities, Warren Buffet, and Mitt Romney count on dividends and capital gains. If you think 15% tax on top of the base tax you paid to accumulate that asset base is too little, what is fair? If those middle class Americans earned that asset base working for a company, that company paid up to 35% tax on that profit. That worker had federal taxes withdrawn plus state and in some cases local taxes deducted. That company paid those dividends from after tax dollars. So, the effective tax rate on those dividends paid was 50%.
Romney made $7 million in charitable contributions in the past two years. Obama wants to lower the deduction for charitable contributions for the second time in his term.
Obama and Gingrich paid higher effective rates than Romney. Their incomes came from salaries and income not subject to capital gains. To me, this means Romney is invested in corporate America while Obama is not. If I were Obama and I was doing to corporate America what he is doing, I wouldn’t be invested in their futures either. Romney pays less in taxes than his charitable contributions, $6 million over two years.
If the best source of income from assets to the average American is stock in companies paying dividends, do we want to stop that last bastion of growth from assets accumulated?
Then, Obama wants to tack on a death tax. You were taxed on the income you made, taxed on the interest and dividends and capital gains on that income saved, and taxed once again when you die.
Romney’s tax rate is not sinful. Obama’s capacity to tax and spend is sinful.
