Wasn’t it Mitt Romney who derided the 47% of Americans who do not pay income tax?
When is “income” not income?
Mr. Romney’s just released 2011 tax return shows that Romney’s IRA earned between 9 and $10 million. The IRA, however, is not taxable because capital gains are not taxed until they realized. This is true even if the gain is in something which is so secure that it amounts to income. In other words if Mr. Romney is being paid for his services to Bane in some form that can be counted as capital, he pays no taxes!
“Mitt Romney was paid an immense amount for services rendered and is not putting it in his income. …To say he has a 14 percent rate doesn’t capture the economic reality of what’s happening,” “It’s more like Romney has a salary of $10 million and he’s paying 14 percent on $1 million and the rest just isn’t included.”
Of course, someday Mr. Romney will pay taxes on this income, when he actually spends some of it!
By the way, what happens if Mitt never spends that money?
What happens if he dies? My understanding is that the money will then be tax-free forever because the money would be taxed as part of his estate. This is the so-called “death tax” that the Republicans want to get rid of. Even now, given the limits on estate taxes,his tax planners have surely found a way to manage the estate so that Mitt’s 5 sons would earn nothing… Or at least nothing taxable!
Another great gimmick for Mitt, is to will the money to a “tax-free institution” including the Mormon church or even some foundation Mitt has created that can then pay income to his children. Again nothing taxable!