Thursday, August 16, 2012
Mitt Romney's Defense of His Taxes Shows How The Tax System Has Become Less Progressive
Mitt Romney claims that he paid at least 13% on his income for the last ten years. That is a lower rate than most households in the US. In addition to income taxes, most households contribute to the payroll tax. Most households pay more in payroll taxes than they pay in income taxes. Most of Romney's income came from capital gains and dividends which are taxed at a lower rate than wage income. They are also not subject to the payroll tax. Moreover, there is no payroll tax on wage income over $108,000. Romney probably obeyed the tax laws when he filed his taxes. The problem is with the changes in tax policy pushed by the GOP which has made the tax system far less progressive than most people realize.