A First Glimpse At Romney's Tax Returns

This article in the NYT on Romney's tax returns for 2010 and 2011 is work in progress. It has not been edited yet but it does tell a story about tax policy and how the super rich can use a variety of devices to reduce their taxes. It also tells a story about their source of income. The great majority of Romney's income came from assets that he owns and from an arrangement with the company that he founded. He continues to share in the profits of Bain Capital without providing any value added. Basically, Romney is a rentier. His income comes from accumulated wealth. Since wealth is less evenly distributed than earned income, and it is a major source of income to the super rich, it exacerbates income inequality. That is why the super rich fund politicians who support lower taxes on accumulated wealth and why they support the elimination of estate taxes. That would make it easier for the super rich to pass on their wealth to future generations who could live off of the earnings on wealth that was created in the past. That puts them into a better position than the landed aristocracies in Europe. It is easier to live off of income generating wealth than it is to live off of land that has a high cost of maintenance.