Due Diligence: Would Ryan have Romney pay a 1% tax rate?

(CBS News) President Obama says that Paul Ryan pushed a budget that would have the very wealthy Mitt Romney pay just 1 percent of his income in taxes.

"The centerpiece of Governor Romney's entire economic plan is a new $5 trillion tax cut, a lot of it going to folks like me, a lot of it going to the wealthiest Americans," he said in Rochester, New Hampshire on Saturday. "His new running mate, Congressman Ryan, put forward a plan that would let Governor Romney pay less than 1 percent in taxes each year. That's a pretty good deal, just paying 1 percent in taxes. You're making millions of dollars."

So is it true that Ryan put forth a tax plan that would have had Mitt Romney - who has estimated his worth at up to a quarter billion dollars - pay less than one percent in taxes? It seems to be.

The House budget plan Ryan put forth in 2010 eliminated taxes on capital gains, interest and dividends. Romney made more than $21 million in 2010, the only year he has released his full tax returns - and about 95 percent of it came from those sources. Under Ryan's plan, Romney would only have paid taxes on the less than $1 million he made from other sources, which would be taxed at the new, lower top tax rate of 25 percent. The 2010 Ryan plan would have saved Romney, who paid a 13.9 percent tax rate that year, more than two and a half million dollars.

But that's not the whole story. Newer versions of Ryan's budget plan do not talk specifically about eliminating taxes on capital gains and dividends. That doesn't necessarily mean he wouldn't eliminate those taxes if he had the chance. But it does mean that his budget plan for the past two years does not specifically call for them to go.

It's also important to note that Romney has criticized this very idea. In a Republican debate in January, Romney criticized Newt Gingrich by pointing out that under Gingrich's plan to reduce capital gains taxes to zero, he "would have paid no taxes in the last two years." Romney's own tax plan would eliminate taxes on interest, dividends, and capital gains for those who make less than $200,000 - but keep them at the current rate for people who make more than that, including himself. 

So President Obama's claim that Ryan once put out a plan that would have Romney pay less than 1 percent in taxes is true. But that is not a part of Ryan's latest plan, and it isn't Romney's plan. You can certainly make the case that Ryan's 2010 budget reflects the Republican belief that taxes on the rich should be reduced. But you can't say Romney is pushing a plan that would cut his taxes to less than one percent.

Thanks for watching.

[John_Steinsvold]

An Alternative to Capitalism (if the people knew about it, they would demand it)

Several decades ago, Margaret Thatcher claimed: "There is no alternative". She was referring to capitalism. Today, this negative attitude still persists.

I would like to offer an alternative to capitalism for the American people to consider. Please click on the following link. It will take you to an essay titled: "Home of the Brave?" which was published by the Athenaeum Library of Philosophy:

http://evans-experientialism.freewebspace.com/steinsvold.htm

John Steinsvold

"Insanity is doing the same thing over and over and expecting a different result."~ Albert Einstein

[tbirdboy]

How ironic that conservatives talk welfare and food stamps but would rather keep the super rich sucking on the bottle. These republicans are good at their messages. Snakes I tellya.

[GOP-R--Con-Men]

I have been analysing the GOP for years and I have deciphered their playbook. And some of the things they do will seem strange unless you know what their goals/end game actually is. Remember everything they do is toward that end.

1. Republicans love deficits when they are the party that creates them. Now you might say, why is that? Republicans hate government and it's ability to help ordinary Americans. Have any republican president EVER ran a deficit by spending money on people to benefit them? No! So what do they do? They empty the treasury wasting money on unnecessary wars and tax give a ways the corporation, big oil and the super rich and the while Americans are in dire need of help from their government. Those entities don't need the money and some never asked for it.

But republican know that they can use a empty treasury to proclaim the country is broke and we can't afford this or that program for ordinary Americans. Then they said you should pull yourself up by your boot straps. Even though republican cut the boot straps and programs that might help you. But they have NO PROBLEM giving billions to corporations, big oil and the super rich. Why would they do this? Remember republicans NEVER want government to be beneficial to Americans. So if government programs prove benefical that's a problem for republicans because it goes against their decades oud mantra that government is the problem and it must be reduced or eliminated.

There's much more to their tricks and games but you get the picture.

That's why they must be voted out of office.

[hhandyman]

WE cant afford to elect no one to the office of president but we can give the people that have caused 98% of the problems we have today give the Republicans the change they keep asking for.. give them a 5 years vacation from Congress and elect people willing to work for the good of the nation by compromising and working together for the common good of all citizens of this nation/

[sjc_1]

Capital gains should be taxed as normal income. Your primate residence sale is not a capital gain. Selling vacation homes is a capital gain and if there is a loss there is no carry forward.

If Romney sells one of his homes that is not a primary residence, he pays normal income tax on the gain. If he has a loss, the loss is his. The taxpayers to not make up for his losses.

[sjc_1]

Primary is where you live, primate is where they keep Ryan.

[WiseAsOwl]

What the heck does this article have to do with anything?? What a waste.... when we could be talking about the issues involved in the run for presidency between Obama and Romney.. It's almost as if the media doesn't want to dwell on the issues.. That couldn't be true... could it???

[jimbom121]

How is tax policy not an issue?

[THALES457]

SHAME !! GOOGLE "SOCIAL DOMINANCE THEORY".

[nottblu]

Day in and day out we witness the hitpiece articles designed to critisize and slander the republican candidates brought to you by the good folks here at leftwingcentral/CBS. Why is it they never show ANY "Due Diligence" in regards to this failed administration and it's failed policies? BIAS of course! The leftwingers that frequent this site will surely be shocked come November, they are not aware that the silent majority see through this type of biased propoganda and agenda driven articles and will vote accordingly. Clear thinking adults know the evil rich already pay 80% of the taxes and making them pay more or placingblame on them will do NOTHING for the defecit or the nation. All Obama has after four years of failure is smoke, mirrors, and daily distractions, it will not work, his time is almost over.

[web6242a]

And what Policies have the GOP put out thast Obama has vetoed ? ---
Obama has only vetoed 1 bill in 4 years. The Imbecilic Tea Party, 2010 crowd, have signed a pledge to a lobbyist (Grover Norquist) In my mind that is an act of treason. The GOP have been so hellbent on making Obama a 1 term President they have blocked 95% of anything he has proposed --- they even blocked the Simpson Bowles plan. The only thing I see Politicians doing is Campaigning endlessly --- The GOP are obstructionists , whose loyalty is divided between Power grabbing and following a lobbyist. Obstruction is not leading. Both parties are a joke!!!! But the Repunlicans are the bigger joke. The Bush tax cuts and wars took the Clinton surplus and created the greatest downturn since the Great Depression!!

[rharrin1]

If you don't like CBS, WHY ARE YOU ALWAYS HERE?

Better dead than red.

[AnnaB17]

The fact that this idiot even EVER put out a proposal to eliminate the Capital Gains tax makes him extremely dangerous. We reduced the capital gains tax rate from 20% in 2003 to 15% in 2011 ... please tell me where are the JOBS from these tax cuts? Or are we just supposed to believe the mantra of the right wingers - investors are "job creators" ... yeah right!!!! R&R are just sell outs to their rich cronies that want to buy the election.

[greennnnnn-2009]

Anna, none of these people who have had tax cuts are job creators. If they were, where in the HELL are the jobs? It's nothing but a bunch of tripe. They've had, what, about 12 years to create these so-called jobs. They're phantom jobs. There are none. They're just keeping more of their money, plain and simple.

[88Ronin]

Economic policy by Eddie Munster, who grew up to be a cultist, supporting the largest pedophilia ring on the planet and teamed with a Mormon cultist who expects to get his own planet out of the deal, after he ruins this planet.

Want peace and plenty? Get religion out of government.

[retiredgustav]

AMEN!