Romney Admits His Tax Rate Is About 15 Percent, Lower Than Many Middle Class Families

[slim 1,525]

Remind me, how much does the average middle class family pay in capital gains taxes each year?

In actual dollars, please.

[웃 910]

Remind me, how much does the average middle class family pay in capital gains taxes each year?

In actual dollars, please.

I'm not sure. Can't find the figures. Probably an average of $10 or so!

• Most middle-income Americans own much or all of their stock through 401(k)s, IRAs, or other tax-preferred saving accounts. They do not pay taxes when their stocks within those accounts go up, so a change in the tax rate doesn't affect them.
• Even among the minority of middle-class Americans who do benefit from the capital gains and dividend tax cuts, the benefits are very small. This is because capital gains and dividend income is highly concentrated at the very top of the income scale. The Tax Policy Center estimates that the highest-income 5 percent of U.S. households receive 83 percent of total capital gains income.
• According to the Tax Policy Center, the average household in the middle of the income spectrum received $20 from the 2003 capital gains and dividend tax cuts. The average household earning over $1 million received $32,000, or 1,600 times as much.

Edited January 18, 2012 by ☠

[BishopM 114]

Thank god someone is paying taxes or how else would my unemployment be covered?

Slacker...

Edited January 19, 2012 by BishopM

[BishopM 114]

Q: Whats the effective rate youve been paying?

ROMNEY:

Whats the effective rate Ive been paying? Its probably closer to the 15 percent rate than anything

, because my last ten years, Ive, my income comes overwhelmingly from investments made in the past, rather than ordinary income, rather than earned annual income.

I needz to findz me more of that 'investment income'....sounds sweetz!

'Earned Income' is the svkc

Edited January 19, 2012 by BishopM

[Mr. Big Dog 10,747]

So, Romney is the 1%.

Based on his effective tax rate, he's more like the 80% which pay effective income tax rates of 15% or less.

[slim 1,525]

I'm not sure. Can't find the figures. Probably an average of $10 or so!

So, the average middle income American pays $10 each year in capital gains. How much did Romney pay?

I find it extremely hypocritical that people insist the rich aren't paying their fair share and should be taxed more. "But they're not paying enough and it doesn't hurt them the way it hurts me." Hello, McFly.... if you pay $10 out of your $100 salary and a rich dude pays $200 out of his $10,000 salary, who is paying more?

Until the government starts spending percentages instead of dollars, the rich will continue to bear the burden of supporting our corrupt government.

Everyone wants to raise taxes on someone else!

[SMR 368]

So, the average middle income American pays $10 each year in capital gains. How much did Romney pay?

I find it extremely hypocritical that people insist the rich aren't paying their fair share and should be taxed more. "But they're not paying enough and it doesn't hurt them the way it hurts me." Hello, McFly.... if you pay $10 out of your $100 salary and a rich dude pays $200 out of his $10,000 salary, who is paying more?

Until the government starts spending percentages instead of dollars, the rich will continue to bear the burden of supporting our corrupt government.

Everyone wants to raise taxes on someone else!

Moreover, earned income is much more difficult to move than capital gains income. That is, I can't get a job in another country as easily as I can take my money out of an American investment fund and put it in a foreign fund. And when capital gains are higher here, I have a significant motivation to move capital elsewhere.

[slim 1,525]

Moreover, earned income is much more difficult to move than capital gains income. That is, I can't get a job in another country as easily as I can take my money out of an American investment fund and put it in a foreign fund. And when capital gains are higher here, I have a significant motivation to move capital elsewhere.

So, what you're saying is higher taxes on capital gains actually encourages rich people to NOT creat jobs and stimulate our economy?

NO WAY!!!

Taxes help our country, not hurt it. (Or so they tell us.)

[Mr. Big Dog 10,747]

And when capital gains are higher here, I have a significant motivation to move capital elsewhere.

Where?

[slim 1,525]

Where?

Anywhere!

[Mr. Big Dog 10,747]

Anywhere!

Well, if you're looking for lower cap gains taxes, it ain't anywhere. There are tons of places where your cap gains will be taxed more than in ther US. Yes, there are some countries that have lower cap gains taxes but some of those you might not want to take your money to. If I can turn $200.00 into $300.00 here in the US and then owe 25% tax on the gain, I'm left with $75.00. You, on the other hand, rather take your $200.00 to another country where your cap gains tax is zero but the best opportunity that market offers is for you to turn your $200.00 into $250.00. Then you're left with $50.00 while I have $75.00. You sure showed me how to avoid paying taxes. But I showed you how to make money.

[slim 1,525]

Well, if you're looking for lower cap gains taxes, it ain't anywhere. There are tons of places where your cap gains will be taxed more than in ther US. Yes, there are some countries that have lower cap gains taxes but some of those you might not want to take your money to. If I can turn $200.00 into $300.00 here in the US and then owe 25% tax on the gain, I'm left with $75.00. You, on the other hand, rather take your $200.00 to another country where your cap gains tax is zero but the best opportunity that market offers is for you to turn your $200.00 into $250.00. Then you're left with $50.00 while I have $75.00. You sure showed me how to avoid paying taxes. But I showed you how to make money.

Perhaps I give my $200 to my relatives in a foreign country and nobody pays taxes on anything.

[Mr. Big Dog 10,747]

Perhaps I give my $200 to my relatives in a foreign country and nobody pays taxes on anything.

Then perhaps there's no capital gain to be taxed?

[I AM NOT THAT GUY 5,715]

Well, if you're looking for lower cap gains taxes, it ain't anywhere. There are tons of places where your cap gains will be taxed more than in ther US. Yes, there are some countries that have lower cap gains taxes but some of those you might not want to take your money to. If I can turn $200.00 into $300.00 here in the US and then owe 25% tax on the gain, I'm left with $75.00. You, on the other hand, rather take your $200.00 to another country where your cap gains tax is zero but the best opportunity that market offers is for you to turn your $200.00 into $250.00. Then you're left with $50.00 while I have $75.00. You sure showed me how to avoid paying taxes. But I showed you how to make money.

[SMR 368]

Well, if you're looking for lower cap gains taxes, it ain't anywhere. There are tons of places where your cap gains will be taxed more than in ther US. Yes, there are some countries that have lower cap gains taxes but some of those you might not want to take your money to. If I can turn $200.00 into $300.00 here in the US and then owe 25% tax on the gain, I'm left with $75.00. You, on the other hand, rather take your $200.00 to another country where your cap gains tax is zero but the best opportunity that market offers is for you to turn your $200.00 into $250.00. Then you're left with $50.00 while I have $75.00. You sure showed me how to avoid paying taxes. But I showed you how to make money.

That's a good fairy tale. If the US really offered an opportunity for a 50% return, you'd be right that even a very repressive tax structure wouldn't be a deterrent to investment. But in US economy 4-6% is doing really well right now. Various developing countries offer a much better potential and have lower taxes.

The real part of this that needs to be considered is not US Citizens moving their capital out of the US (which is difficult and has various tax penalties to discourage this) but rather foreign investors not investing in the US. As a US Citizen, if I want to invest in a foreign business, I will still end up paying taxes. Were I a Russian, for instance, the tax code would greatly discourage me from investing in the US. And there is no way that the US would penalize me for not investing in the US or tax my foreign investments.