The left is again aghast at the tax life of Mitt Romney, working up a
lather about his revelation that over the past decade his income tax
rate has hovered around 13 percent.
That's brought out the well-worn denunciations of the unfairness of a tax code that permits filthy rich guys like Romney to pay proportionately less than their secretaries.
There's absolutely no use trying to explain to these crusaders for justice that Romney pays 13 percent because 1.) He reduces his taxable income with millions in charitable donations, and 2.) His income derives primarily from capital gains on investments, which are taxed at a lower rate than income from a paycheck.
Investment income gets a tax break because the government wants people to invest. Investment creates jobs, spurs development, expands the economy and ultimately reaps greater tax revenues.
When George W. Bush lowered the capital gains tax to its current 15 percent rate from 20 percent, revenue from the tax soared over the next three years and helped the nation avoid the severe economic downturns that easily could have followed the 9/11 terrorist attack, the Iraq War or Hurricane Katrina.
From The Detroit News: http://www.detroitnews.com/article/20120819/OPINION03/208190307#ixzz24fGUwGFP
That's brought out the well-worn denunciations of the unfairness of a tax code that permits filthy rich guys like Romney to pay proportionately less than their secretaries.
There's absolutely no use trying to explain to these crusaders for justice that Romney pays 13 percent because 1.) He reduces his taxable income with millions in charitable donations, and 2.) His income derives primarily from capital gains on investments, which are taxed at a lower rate than income from a paycheck.
Investment income gets a tax break because the government wants people to invest. Investment creates jobs, spurs development, expands the economy and ultimately reaps greater tax revenues.
When George W. Bush lowered the capital gains tax to its current 15 percent rate from 20 percent, revenue from the tax soared over the next three years and helped the nation avoid the severe economic downturns that easily could have followed the 9/11 terrorist attack, the Iraq War or Hurricane Katrina.
From The Detroit News: http://www.detroitnews.com/article/20120819/OPINION03/208190307#ixzz24fGUwGFP
No comments:
Post a Comment