Tuesday, January 24, 2012

A Snapshot of Newt Gingrich's Tax Return

The NYT has provided us with a glimpse from the tax returns of Mitt Romney and Newt Gingrich. The article on Gingrich's return tells a story that illustrates the difference between Romney and Gingrich's sources of income and about tax policy as well. Romney receives most of his income from wealth that is taxed at a lower rate of income. Gingrich received most of his income by selling his human capital. His human capital consists of his personal contacts with politicians, and his knowledge about the operation of the political system in Washington. Corporations are willing to pay a lot for the services that can be derived from Gingrich's human capital because they get an excellent return on investment. Gingrich claims that he is not a lobbyist on a technicality. He never registered as a lobbyist, therefore performing the services of lobbyist does not make him a lobbyist. There are a lot of women who earn a similar living who have not registered as prostitutes

One of these two individuals will be running for the presidency of the most powerful country in the world. If we have a skill shortage in the US, it is not a shortage of skilled workers, it is a shortage of politicians who have personal integrity that is equal to their political ambition.

No comments:

Post a Comment