Romney pays 15% tax rate

[Bri]

In my opinion a lot of people should be paying more income taxes. Not the democrat plan only those above 250,000 and not the republican plan of no one.

So what would your plan be? Do you want to increase the income tax rate on the poor so that they exceed their tax expenditures, or do you want to remove the tax expenditures for the poor?

-Bri

 

[Puppycow]

So it costs Romney the same amount regardless of where he puts his money, so Romney puts his money in the Caymans because...?

-Bri

According to the article:

Bain officials called the decision to locate some funds offshore routine, and a benefit only to foreign investors who do not want to be subjected to U.S. taxes.

Tax experts agree that Romney remains subject to American taxes. But they say the offshore accounts have provided him -- and Bain -- with other potential financial benefits, such as higher management fees and greater foreign interest, all at the expense of the U.S. Treasury. Rebecca J. Wilkins, a tax policy expert with Citizens for Tax Justice, said the federal government loses an estimated $100 billion a year because of tax havens.

Blum, the D.C. tax lawyer, said working through an offshore investment vehicle allows the investor to "avoid a whole series of small traps in the tax code that ordinary people would face if they paid tax on an onshore basis."

Wilkins agreed, saying the "primary advantage to setting those funds up in an offshore jurisdiction like the Cayman Islands or Bermuda is it helps the investors avoid tax."

"It helps U.S. investors avoid U.S. tax," said Wilkins, "it helps foreign investors avoid taxes in their home country, so it's not illegal or improper to set those funds up in a foreign jurisdiction, but it makes it more attractive to investors because it helps them avoid paying taxes on that income."

 

[eeyore1954]

So what would your plan be? Do you want to increase the income tax rate on the poor so that they exceed their tax expenditures, or do you want to remove the tax expenditures for the poor?

-Bri

It is not the poor who I would want to pay more taxes it is those somewhere above the poverty line. I think those making somewhere around 50,000 or more should pay more taxes.

 

[ponderingturtle]

You're so close here...

By that same reasoning doesn't lower tax rates for capital gains attract more investment capital than if the rate were higher?

So they have more money to diversify between Icelandic hedgefunds and mortgage backed securities. That really drives the economy.

 

[Bri]

It is not the poor who I would want to pay more taxes it is those somewhere above the poverty line. I think those making somewhere around 50,000 or more should pay more taxes.

I misunderstood. I thought from your earlier comments that you wanted to reduce the number of people who don't pay income taxes (more accurately income taxes minus tax expenditures).

Your plan would be to raise taxes on everyone above around $50,000? That seems reasonable. Allowing the Bush tax cuts to expire would probably accomplish that.

-Bri

 

[ponderingturtle]

It's not a catch-22 if all you have to do is pick yourself up by your bootstraps. See, that's another difference. Democrats just say how difficult and unfair things are. Maybe that's true, but Republicans make you feel better: You can do anything! Morning in America! Mission Accomplished!

And why are you weighting people down when they are pulling themselves up by taxing them at a much higher rate than those who have made it? Why not tax all income the same?

 

[Puppycow]

Nice graph here for comparison:

Compare Mitt Romney's effective tax rate to yours.

If you make $50,000 to $75,000 or above, your tax rate is probably higher than Mitt Romney's. If you make less than that, it's probably lower.

 

[BenBurch]

You're so close here...

By that same reasoning doesn't lower tax rates for capital gains attract more investment capital than if the rate were higher?

Nope. Money is never just left sitting around.

 

[thaiboxerken]

Right. All you need is capital. And where do you get capital if you're not already rich? Damn that catch 22.

Inherit the money, like most of them do.

 

[a_unique_person]

80% of the Bush cuts went to the middle class, not the rich.

Who are tending to held on to it, and it didn't all come at once. Australia gave away 2,000 cash to every tax payer. It got spent, not all of it wisely, but the momentum was kept up in the economy, and the poor got their cut of the pie as well.

 

[a_unique_person]

Nice graph here for comparison:

Compare Mitt Romney's effective tax rate to yours.

If you make $50,000 to $75,000 or above, your tax rate is probably higher than Mitt Romney's. If you make less than that, it's probably lower.

Paying tax is optional for the rich.

 

[WildCat]

So it costs Romney the same amount regardless of where he puts his money, so Romney puts his money in the Caymans because...?

-Bri

Probably becauise thet's where his clients are.

 

[WildCat]

Nope. Money is never just left sitting around.

But where does it sit? In the treasury of a company that uses it to expand, or in a CD that helps the government borrow more money but doesn't have a chance of helping any business grow?

You ignore the risk of investment, when you invest you can lose it all. The low tax rate offsets some of that risk and encourages the risky investments that grow the economy.

 

[applecorped]

We should just invade the Caymans and dump every dime of everybody's deposit into the federal treasury. Then we can eliminate the income tax completely for a decade or so.

And then we should confiscate everyone's bank accounts in the whole country and create a Utopia!!! Yay!!!!

 

[The Dark Lord]

Right. All you need is capital. And where do you get capital if you're not already rich? Damn that catch 22.

Yes. Because every person who has founded a succesful company and become rich(er) was already rich.

 

[WildCat]

Yes. Because every person who has founded a succesful company and become rich(er) was already rich.

Of course, Warren Buffet was born a billionaire. Bill Gates too.

 

[KoihimeNakamura]

Oooh, ancedotal .. nondata!

 

[steve s]

anyone -- can get away with paying nothing in taxes: just don't have a job.

Or be really rich and hire a good tax attorney.

http://articles.latimes.com/2010/feb/24/business/la-fi-hiltzik24-2010feb24

To everyone who claims that our wealthiest citizens pay more than their fair share of income taxes and we should cut them a break because they're the ones who, you know, create jobs in our economy, I have four words for you:

Frank and Jamie McCourt.

The McCourts, who own the Los Angeles Dodgers (so she says; he says he's the owner and she's not), jointly pocketed income totaling $108 million from 2004 through 2009, according to documents Jamie McCourt recently filed in the couple's divorce case in Los Angeles County Superior Court.

On that sum, they paid zero federal and state income tax. Jamie suggests that some tax breaks will apply this year too.

Steve S

 

[RandFan]

Less taxes = more investing.

Sounds intuitive. Is there any evidence that 15% is the magic number? Why not 10% or 0%?

Sincere question, please forgive my naivete.

Let's assume that the tax rate was raised from 15% to 20%. Where would the rich put their money instead?

 

[fishbob]

I am not going to bother working it out but I do understand about all the other taxes people pay. But if the net federal and FICA taxes paid are zero for a family of 4 with 2 children. I find it reasonable to think other taxes are around 10% or less. Most states/localities do not charge sales taxes on staples, most states have their own versions of EIC, etc.

In my opinion a lot of people should be paying more income taxes. Not the democrat plan only those above 250,000 and not the republican plan of no one.

Your opinion and mine are identical on this issue. However your punctuation needs some consistency - either: democratic plan and republican plan or democrat's plan and republican's plan.