Romney admits he pays lower tax rate than most Americans

UPDATED 6:55 p.m. ET

Republican presidential front-runner Mitt Romney acknowledged Tuesday that he pays an income tax rate close to 15 percent, the same rate that billionaire investor Warren Buffett has decried as lower than that paid by most middle-class Americans.

Asked a press conference what rate he pays, Romney responded, "What's the effective rate I've been paying? It's probably closer to the 15 percent rate than anything. Because my last 10 years, my income comes overwhelmingly from some investments made in the past, rather than ordinary income or rather than earned annual income. I got a little bit of income from my book, but I gave that all away. And then I get speakers fees from time to time, but not very much."*

Romney earned more than $300,000 in speaking fees in the twelve months through February 2011, according to financial disclosure statement filed to the government by his campaign. While that income would be taxed at a 35 percent rate, minus deductions, he suggested it is a fraction of his overall income.

Romney, who in August disclosed to the Federal Election Commission a net worth of between $190 and $250 million, in effect confirmed that, like many wealthy investors, he earns the bulk of his income from his investments. Dividends and capitol gains are taxed at a relatively low 15 percent rate. Romney said at Monday's Republican presidential debate that he would "probably" release his tax returns in April, though he would not promise to do so. 

President Obama has sought to increase the tax rate for wealthy investors, and cleverly named his proposal to do so "the Buffett rule," after the famed investor from Omaha, Nebraska. Mr. Obama wants to make sure that no household making more than $1 million annually pays a lower rate than middle class Americans.

In a high-profile op-ed in the New York Times in August, Buffett complained that the tax system is so dysfunctional that he ended up paying a lower tax rate than the salaried workers at his firm and urged Congress to "stop coddling the super-rich."

Buffett wrote, "Some of us are investment managers who earn billions from our daily labors but are allowed to classify our income as "carried interest," thereby getting a bargain 15 percent tax rate. ... These and other blessings are showered upon us by legislators in Washington who feel compelled to protect us, much as if we were spotted owls or some other endangered species. It's nice to have friends in high places."

Romney has spoken out against Obama's plan to raise taxes for the wealthiest Americans, saying in August, "Right now we need job creators to use their capital to start new businesses, to put people to work, and the last thing I want to do is to take money away from entrepreneurs and innovators, small business people."

Republican presidential candidate, former Massachusetts Gov. Mitt Romney

/ AP Photo/Charles Dharapak

Democrats are already jumping on Romney's acknowledgement concerning his tax rate. Priorities USA Action, a Democratic super PAC, emailed reporters a web video it made previously spotlighting the issue on Tuesday. The video spotlights what it calls "The Romney Rule," which it defines as "millionaires like him are entitled to pay taxes at a lower rate than teachers, cops or construction workers."

Former House Speaker Newt Gingrich, who is also seeking the GOP presidential nomination, responded to Romney's comments on Tuesday by saying, "he ought to release his taxes so we can find out whether or not it was really 15 percent."

"And second I think we ought to rename our flat tax," he continued, referencing his own optional flat tax proposal. "We have a 15 percent flat tax so this would be the Mitt Romney flat tax that all Americans could then pay the rate that Mitt Romney paid. I think that's terrific."

Texas Gov. Rick Perry, meanwhile, repeated his call for Romney to release his tax returns Tuesday.

"Release all of your income tax and then the people of America can do the calculations I think rather speedily and figure out what it is and make an appropriate conclusion," he said.

In response to Gingrich's comments, Romney spokesperson Andrea Saul commented: "President Obama and Speaker Gingrich are once again reading from the same talking points. Neither Obama nor Gingrich understand how the real economy works and their desperate distractions from that fact aren't going to work."

*Correction: Romney's quote had been changed after an error in the original transcription.

Additional reporting by Laura Strickler, Rebecca Kaplan and Sarah Huisenga and contributions from Corbett Daly and Brian Montopoli.

[RollotheNorman]

My, all the comments. Was anybody really surprised Willard doesn't pay his fair share? The culture of the right insists it's praiseworthy to sandbag on taxes. Especially if you're among the mega-wealthy. What I would really like to know is how much Willard has stashed in off shore accounts, and of that amount, how much he has reported. Last major RepubliCON that spent time for tax fraud was Tricky Dick's VP, Spiro T. Agnew.

[mentalist65]

Romney's very good at hiding his money overseas.

[occupy_cbs]

Reagan insider: 'GOP destroyed U.S. economy'

David Stockman, President Ronald Reagan's director of the Office of Management and Budget, explained in an op-ed piece, "Four Deformations of the Apocalypse," exactly how the economic decisions of the GOP over the past 40 years, is destroying not just the economy and capitalism, but the America dream.

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occupy_cbs: "And....every one of the 2012 GOP candidates is proposing MORE OF THE SAME failed GOP economic policies for the future, too!"



=====
Tired_of_liars: "And none of them are saying that."
=====



Yes, every one of the 2012 GOP clowns is proposing the same failed republican economic catastrophe we've witnessed for the past 40 years.

I'll make it easy for you, and just ask for one that isn't, and while you're at it, leave your personal attacks at the door DJ.

[occupy_cbs]

Overall, the GOP candidates' tax plans give tax breaks to the wealthy that are up to 270 times as large as those they deign to give to the middle class. Several of them, in fact, would raise taxes on many middle class families. Romney, for instance, would raise taxes on half of middle class families with children, due to his elimination of an expanded child tax credit implemented by President Obama.

[occupy_cbs]

vsmit: "Quit bashing the golden goose."



occupy_cbs: "Seriously, calling the ultra-wealthy like willard romney 'the golden goose,' only proves how far you fox/rush parrots have fallen for the 40 years of economic devastation foisted upon America by the republicans.


Reagan insider: 'GOP destroyed U.S. economy'

David Stockman, President Ronald Reagan's director of the Office of Management and Budget, explained in an op-ed piece, "Four Deformations of the Apocalypse," exactly how the economic decisions of the GOP over the past 40 years, is destroying not just the economy and capitalism, but the America dream.

-----

Tax Cuts And 'Starving The Beast'
by Bruce Bartlett

The most pernicious fiscal doctrine in history

http://www.forbes.com/2010/05/06/tax-cuts-republicans-starve-the-beast-columnists-bruce-bartlett.html


=====
vsmit: "Nobody is interested in your historical revisionism."
=====




Your continuing reading comprehension problem has gotten quite acute, since I merely pointed out two conservative republicans that worked on reagan economic policy, and their thoughts today on 40 years of GOP economic decisions that is destroying not just the economy and capitalism, but the America dream.

I didn't rewrite any historical facts (like you delusional republicans do all the time), and only presented what the fathers of "supply-side economic lunacy" -- two conservative republicans -- have been stating over the past few years.

Despite the continuing popularity among republican politicians of the 'starve the beast' dogma, at least a few conservative intellectuals are starting to have misgivings about its insanity. In 2005, free-market economist Arnold Kling admitted he had been wrong. "Cutting taxes did not help to reduce the size of government," he conceded.

For some years Bill Niskanen of the libertarian Cato Institute has argued that 'starve the beast' actually increased spending and made deficits worse.

In the latest study of 'starve the beast,' political scientist Michael New of the University of Alabama confirms Niskanen's analysis. "Revenue reductions by themselves are not an effective mechanism for limiting expenditure growth," New concluded. "The evidence suggests that lower levels of federal revenue may actually lead to greater increases in spending."

In effect, 'starve the beast' became a substitute for spending restraint among republicans. They talked themselves into believing that cutting taxes was the only thing necessary to control the size of government. Thus, rather than being a means to an end -- the end being lower spending -- tax cuts became an end in themselves, completely disconnected from any meaningful effort to reduce spending or deficits.


"In short, 'starve the beast' is a completely bankrupt notion that belongs in the museum of discredited ideas, along with things like alchemy." -- Bruce Bartlett, former Treasury Department economist and the author of 'The New American Economy: The Failure of Reaganomics and a New Way Forward.'


Hey vsmit -- come back when you can refute the words from all these conservative republican economists, and not just spew your fox/rush propaganda and attacks about ridiculous 'history revision.'

[noloyalisti]

The greedy Military Industrial Financial Complex which owns and runs the government has made America a 3rd world nation where the less you make the more you pay in taxes. That's a FACT and it must end because it is not sustainable.

[Tired_of_liars]

by skyk801 January 18, 2012 9:01 AM EST
This Semi Human didn't upset me by paying less than HALF what Working People make, it's the fact he wants to CONTINUE the INSANITY of giving the Rich these Tax Cuts. What kind of IDIOT wants to do that? IF Tax Cuts to the Rich created Jobs folks we'd be swimming in them... EVERYONE would have a Job.
--------------------------------------
Dude, you have NO HONOR, and you have no morals. What in the Sam Hell is a Semi Human genius?

[noloyalisti]

A rich, white, greedy racist Republicon like Robmee, if you have to ask.

[Tired_of_liars]

He is Racist? What did Romney say that was Racist? Are you an ex Con? Because you sure do like to use it. The Democons are no better

[occupy_cbs]

Fact is, President Obama paid 33.8% in income tax last year, and it appears that willard romney paid close to 15% in income tax, despite BOTH being in the top marginal rate of 35%.

The tax code must change if we will EVER pay down our national debt!

[steeepe]

vsmit: Libetard? You are a fool and have no understanding of economics. Why don't you go to the local community college and learn something useful that will help you to understand the national economy instead of calling liberals retarded? Almost everybody pays taxes of one sort or another. If your stupid proposition were true, how do you explain America's unsurpassed prosperity when taxes on the rich were much, much higher than they are now? You think raising the tax rate to a fair level for the rich will discourage investment? Where's the evidence to support that assertion? Don't bother looking for it -- there isn't any.

[occupy_cbs]

vsmit: "Quit bashing the golden goose."




Seriously, calling the ultra-wealthy like willard romney "the golden goose," only proves how far you fox/rush parrots have fallen for the 40 years of economic devastation foisted upon America by the republicans.


Reagan insider: 'GOP destroyed U.S. economy'

David Stockman, President Ronald Reagan's director of the Office of Management and Budget, explained in an op-ed piece, "Four Deformations of the Apocalypse," exactly how the economic decisions of the GOP over the past 40 years, is destroying not just the economy and capitalism, but the America dream.

[occupy_cbs]

Or the 'father' of "trickle-down economic insanity," Bruce Bartlett:


Tax Cuts And 'Starving The Beast'
by Bruce Bartlett

The most pernicious fiscal doctrine in history

http://www.forbes.com/2010/05/06/tax-cuts-republicans-starve-the-beast-columnists-bruce-bartlett.html

[occupy_cbs]

"Nobody is interested in your historical revisionism."


Hey vsmit -- I didn't revise a thing. I just gave you what two conservative republicans that gave us "supply side economic insanity" - "starve the beast" GOP economics, were saying today about their failed policies -- "a completely bankrupt notion that belongs in the museum of discredited ideas, along with things like alchemy."

Obviously, you cannot handle the TRUTH, and would rather just post the usual fox/rush propaganda and nonsensical attacks.

[robertsgt40]

"While that income would be taxed at a 35 percent rate, minus deductions, he suggested it is a fraction of his overall income."? A "fraction? So $300k is a fraction now? With Romney's "income" coming directly from offshoring(not to mention avoiding U.S. taxes), I can see why he doesn't want to submit his financials for public display. Of course, MSM gives him a pass on that. Wonder if it has anything to do with Bain owning Clearwater Communications? What a snake.

[occupy_cbs]

Yes, willard romney is a slimy snake, that has destroyed American lives in the past as a vulture capitalist, and will never be able to relate to the middle class American workers if he 'thinks' that $300,000 is peanuts, and more than likely also has quite a few offshore accounts to hide his $300 million from the IRS.

[occupy_cbs]

People like you fox/rush parrots need to "get over it," and realize that snakes like willard romney are just pushing MORE OF THE SAME failed GOP policies that are destroying not just the economy and capitalism, but the America dream.

The ultra-wealthy will never be able to relate to the middle class, and until we pay off our national debt that is mainly driven by GOP "trickle-down economic insanity," we need to completely re-write our individual and corporate tax code allowing the wealthy to skate!

[occupy_cbs]

LogWarrior: "And compare that to congress who pays no income tax...so where is the outcry on that issue?"



Actually, the real "outcry" is how misinformed you fox/rush parrots and purveyor's of forwarded email propaganda are, and how you can possibly be so ignorant as to not "factcheck" what you spew on a daily basis!

The law changed back in 1986, and our congresscritters, have been paying into Social Security for the past 26 years!

Try to keep up and not look so foolish!

[occupy_cbs]

Why would anyone actually 'think' that our congresscritters did not pay into the system at all, even though most are multi-millionaires and probably pay closer to that 15% in income tax that willard does?