Published in The News Tribune, February 1, 2012
It shouldn’t be surprising that Mitt Romney pays only 15 percent of his income in federal incomes taxes. After all, he benefits from the fact that his income comes mostly in the form of capital gains – income from selling assets that have increased in value. Capital gains are taxed at a top rate of 15 percent, which compares with a top rate of 35 percent on wage income.
This provision in the income tax code explains why Mitt Romney, Warren Buffett and most other super-rich Americans, pay less as a share of their income than do many working Americans. Continue reading