Quote:
Originally Posted by theking
The reason Romney pays a lower rate of tax is because he does not pay a Federal Income tax rate but pays a Capital Gains Tax rate as his only source of income is from his investments and his investment monies have already been taxed by a Federal Income Tax...as he earned it.
|
According to Bloomberg only about 50% of his income is from investments the rest was from other sources. There are enough loopholes and tricks that he can lower his rate dramatically. He isn't alone. Warren Buffett only paid 11% in 2010.
What I am getting at is that the tax code is so complex and filled with so many holes most people don't end up paying anywhere near the actual supposed tax rate for what they earn.