News24

Romney bows to pressure over taxes

2012-09-22 08:00

Washington - Republican presidential candidate Mitt Romney on Friday bowed to pressure over the release of his income tax records, announcing his 2011 tax return would be posted on his campaign website.

The tax data show that his income in 2011 was $13.9m and that he paid $1.9m in taxes on that sum - about 14.1%, Romney's campaign said on Friday.

Romney's income in 2011 came mostly from investments, which are taxed at a lower rate than income from wages. The tax return shows that he also donated $4m to charity in 2011.

The campaign said a more detailed tax return for the year would be posted in greater detail on his campaign website.

A notarised letter from auditor PricewaterhouseCoopers certifying that Romney paid an average of 22% in income tax over the past 20 years will be released with the tax return.

Democrats have demanded Romney, who was the chief executive of the private equity firm Bain Capital for several years during that time span, release his income tax returns going back 10 years.

Democratic leaders have charged that Romney paid no taxes at all.

Democratic television ads also have charged that Romney has bank accounts in offshore tax havens.

Romney previously released his tax return for 2010. It showed that he earned $21m million dollars and paid 14% in taxes.

The highest earners in the US pay an income tax rate of 35%, but investment income and capital gains are taxed at a lower rate.

Comments
  • gary.doyle.520 - 2012-09-22 09:14

    He's a pratt and not the peoples man that Obama is but still a hard working self made millionaire that does pay taxes. Nothing wrong with reaping rewards from wise investments. If SA's goverment elite were half what he is this country would be a better place.

  • FeebleGastro - 2012-09-22 09:43

    Now how about Obama's academic records, and heaven forbid, an unforged birth certificate.

      Kei.Drone - 2012-09-22 10:15

      FYI, Obama was one of the brightest minds at Harvard Law School, and was president of the Harvard Law Review. Not too shabby, hey?

      jaco.human.562 - 2012-09-22 10:28

      Obama does not have a clue how an economy works, Romney on the otherhand will lift the US out of it's economic turmoil. Obama cannot be proud on what he did to the US economy.

      FeebleGastro - 2012-09-22 10:28

      "Obama was one of the brightest minds at Harvard Law School" Like with most things in his fabricated "life", there are many more questions than answers on that one (just google "Obama academic"). And the one guy who can clear it up just does nothing. Yes, that one guy is the current (maybe fraudelent) POTUS. For some reason some people fall for the BS.

  • Denny - 2012-09-22 12:29

    Another problem is that tax codes are quite complicated. Investment income is taxed at a lower rate because those profits have already been taxed once at the corporate level. The effective tax paid on investments is therefore in reality far higher. (i.e. corporate profits belong to the shareholders as do the taxes paid on those profits). I don't support Romney but if you are going to criticise someone for the amount of tax they pay you should at least understand the underlying reasons.

  • francois.henning.374 - 2012-09-22 12:42

    If you truly believe Romney will be better then you must be an utter idiot. America needs to be taxed way more than 13-15% on the rich, a unbiased study was just released that states lower tax does not promote growth. Romney is in no way a better choice than Obama, Obama may be lacking in some departments like tax reform etc, Romney lacks any sound economics.And if by any chance you know for what his economic plans are you are the only one, Romney camp has not released any details on their reform plans except "Lower taxes for more Iphones!".

      Denny - 2012-09-22 15:17

      Let's say I start a little business on the side selling cakes I bake at home. To keep numbers simple let's assume that I make R100 before tax and paying myself. I don't want to retain any profit so I make sure it is all paid to me. If I take it as salary then I will be taxed on it at my marginal rate (worst case scenario is 40% in 2012). The company would then have no profit and no need to pay tax. If I decide to take it in the form of investment income then the company will pay tax of 28%. This leaves R72 (100-28) available for distribution. In order to actually get the money there will then be dividend tax of 15%. This means a further tax bill of R10.80. I receive R100 - R28 - R10.80 = R61.20. This means the effective tax rate in the second scenario is 38.8%. (There is no coincidence that this rate is very similar to the maximum normal tax rate of 40%). Certain demagogue politicians would have us believe that in the second scenario the rate is actually only 15%. Know better.

  • Raymon - 2012-09-22 20:55

    Who cares ? Is this the best the Obama camp can do is cry about Romney's tax ? Obama is a fraud from start to finish and no-one cares..

      dane.herbst.5 - 2012-09-24 08:12

      both of them are frauds, these ppl are just on show, giving americans the idea they have freedom of choice and hope of better tomorrow, frankly its quiet the opposite, the owners of the country dont want that, thats why ron paul didnt get into mitt's current spot, any prez who ever did anything for the good of the americans was killed, they dont want another mess like that, obama will win, they need another 4 yrs to finish bringing america to its knees

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