Thursday, January 19, 2012

Mitt Romney's Tax Rate

Mitt Romney's Tax Rate
Mitt Romney has yet to release his tax records, but admits he thinks he pays an effective rate of approximately 15%. Panderbear suspects Romney is being a little disingenuous. He likely knows his tax rate to several significant digits.

When a quarter-billionaire pays an effective income tax rate of 15%, about the same as Panderbear, you know that regardless of what the nominal marginal tax rate structure is, we do not in practice have progressive taxes. In effect we have a flat tax or worse.

Flat taxes are regressive and, as pointed out in Is a Flat Tax Fair?, hit the less fortunate harder. The fact is that many people in the middle class pay a considerably higher effective rate than Romney, especially so when payroll taxes are included.

As billionaire Warren Buffett said, "The rich have never had it so good." Nevertheless, the number one pander by Romney and the other Republican candidates is that we need to cut taxes on "job creators" like, well, Mitt Romney. Panderbear wonders why anyone in the 99% would think that's a good idea.

[Romney has since released some of his tax records. Actual effective income tax rate? 13.9%. Sweet.]

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