Fact Check: Is Romney's tax rate really lower than yours?

[OohPooPahDoo]

Fact Check: Is Romney's tax rate really lower than yours? | Fox News

IRS data from 2010 shows someone making between $50,000 and $75,000 on average pays an effective rate of 7.8 percent. Even someone making between $100,000 and $200,000 pays a 12.1 percent rate -- also lower than Romney's.

Romney pays the exact same rate any American who invests money and lives on Capital Gains would pay.

I would also note, that just last year, Obama only paid 20%.

Mitt Romney pays the same tax rate as someone else with the same tax return as him.

Wow.

Groundbreaking.

 

[RetiredGySgt]

It's lower then mine, and those tax rates are very low.

Sounds like we need tax reform.

Most of his Income is capitol gains and NO we do not want to raise that rate.

 

[RetiredGySgt]

Fact Check: Is Romney's tax rate really lower than yours? | Fox News

IRS data from 2010 shows someone making between $50,000 and $75,000 on average pays an effective rate of 7.8 percent. Even someone making between $100,000 and $200,000 pays a 12.1 percent rate -- also lower than Romney's.

Sure - if you completely ignore the fact that the FICA tax is a tax on income.


So the answer is that yes, if it were not for the fact that someone making 50-70k a year pays a higher rate in income tax levied by the federal govenrment than Mitt Romney, they would be paying a lower rate.

Romney get his money from Capitol gains. Not from employment, you are aware of course that the rate PROPERLY is less on Capitol Gains? Or are you suggesting we should cut our own throats and raise those rates so no one invest in any business anymore?

 

[RetiredGySgt]

It's lower then mine, and those tax rates are very low.

Sounds like we need tax reform.

No shit Sherlock, we need tax reform?? Why don't you voluntarily pay more?!

PS- Worry about your own miserable paycheck and stop coveting other people's money.

Why shouldn't we worry about people contributing less than they should. Why should I be OK with paying 20% of my lil funky ass check and he only has to pay 14%. Why shouldn't that piss me off? Why should I have to break off more that I can afford when he don't? Why shouldn't it piss me off equally if a guy is paying only 14% as a guy that pays 0%. Why should I be ok with taking up slack for either of them? How did the Republicans con you into fighting for rich people while you pick up their slack?

Look DUMB ASS there are 2 DIFFERENT systems in play here. One is taxation on EARNED Income. which is HIGHER then taxation on Capitol Gains. Raise Capitol Gains and you cut the flow of money to Investments to start improve or build companies and Businesses.

 

[OohPooPahDoo]

Fact Check: Is Romney's tax rate really lower than yours? | Fox News

IRS data from 2010 shows someone making between $50,000 and $75,000 on average pays an effective rate of 7.8 percent. Even someone making between $100,000 and $200,000 pays a 12.1 percent rate -- also lower than Romney's.

Sure - if you completely ignore the fact that the FICA tax is a tax on income.


So the answer is that yes, if it were not for the fact that someone making 50-70k a year pays a higher rate in income tax levied by the federal govenrment than Mitt Romney, they would be paying a lower rate.

Romney get his money from Capitol gains. Not from employment, you are aware of course that the rate PROPERLY is less on Capitol Gains? Or are you suggesting we should cut our own throats and raise those rates so no one invest in any business anymore?

Why would it stop people from investing in business? > 15% tax rates don't stop people from working for a living, and most small businessmen actually receive most of their income in the form of earned income.

 

[OohPooPahDoo]

No shit Sherlock, we need tax reform?? Why don't you voluntarily pay more?!

PS- Worry about your own miserable paycheck and stop coveting other people's money.

Why shouldn't we worry about people contributing less than they should. Why should I be OK with paying 20% of my lil funky ass check and he only has to pay 14%. Why shouldn't that piss me off? Why should I have to break off more that I can afford when he don't? Why shouldn't it piss me off equally if a guy is paying only 14% as a guy that pays 0%. Why should I be ok with taking up slack for either of them? How did the Republicans con you into fighting for rich people while you pick up their slack?

Look DUMB ASS there are 2 DIFFERENT systems in play here. One is taxation on EARNED Income. which is HIGHER then taxation on Capitol Gains. Raise Capitol Gains and you cut the flow of money to Investments to start improve or build companies and Businesses.

Capital gains doesn't tax money for flowing into a business.

 

[Too Tall]

You could lower your tax rate by increasing your contributions to charity, just as Romney does.

yes! and then we can doctor our charitable contribution deduction so it looks like we actually told the truth, and paid 14% instead of the 9% or so we actually paid. good idea, too tall!

9%? I know a lot of folks that tithe 10% of gross income to their church. And, they get a receipt from the church to prove it.

If you invest some of your after tax money in stocks and bonds,retire and no longer have a salary or an income, the only tax you will pay is capital gains. Even though, IMO, that is double taxation, that is the tax law.

 

[Lonestar_logic]

Fact Check: Is Romney's tax rate really lower than yours? | Fox News

IRS data from 2010 shows someone making between $50,000 and $75,000 on average pays an effective rate of 7.8 percent. Even someone making between $100,000 and $200,000 pays a 12.1 percent rate -- also lower than Romney's.

From your link:

While Romney may or may not pay less than the average middle-class earner -- depending on how one defines middle class and how one defines tax rate -- one thing is clear: Romney does pay at a lower rate than the typical wealthy person.

Read more: Fact Check: Is Romney's tax rate really lower than yours? | Fox News

And yes, his tax rate is much lower than mine. He pays less than half my tax rate. Period.

Not if you count the fact that he's taxed twice on the same money. Once at up to 35 percent and again 15 percent.

 

[Too Tall]

Our we could switch to something like a consumption tax, and get rid of income taxes althoughter.

There is a documented, well researched tax plan called the Fair Tax based on consumption that not only eliminates income taxes, it eliminates ALL federal taxes.

Very few politicians are interested in this plan, and even fewer know anything about it.

 

[depotoo]

It's lower then mine, and those tax rates are very low.

Sounds like we need tax reform.

No shit Sherlock, we need tax reform?? Why don't you voluntarily pay more?!

PS- Worry about your own miserable paycheck and stop coveting other people's money.

Why shouldn't we worry about people contributing less than they should. Why should I be OK with paying 20% of my lil funky ass check and he only has to pay 14%. Why shouldn't that piss me off? Why should I have to break off more that I can afford when he don't? Why shouldn't it piss me off equally if a guy is paying only 14% as a guy that pays 0%. Why should I be ok with taking up slack for either of them? How did the Republicans con you into fighting for rich people while you pick up their slack?

because he didn't bring home a "funky ass" pay "check" like you.

 

[Too Tall]

The capital gains tax rate is simply too low.

Yep. Far too many people are investing. Especially all those greedy people with 401K's who want retirement funds.

We need to SERIOUSLY discourage investment in America, and punish those who invested in retirement plans.

When Reagan convinced everyone to bring the top tax rate down to 28%, he also agreed to increase the capital gains rate to 28%, saying that capital gains should be taxed at the same rate as earned income. With this I do not agree, but I do believe the capital gains rate should be closer to 25%. The only time since the beginning of the 20th century that the capital gains tax was actually lower than it is today was in the 1920's, before the Great Depression.

When people invest in America, America grows, people have jobs, own houses and thrive.

This goes against EVERYTHING Obama and the democrats are for.

Crush investment before it starts - so says Obama, so say we all.

silly silly boy...WE DON'T EVER GET TO CLAIM the investment in our 401k's as capital gains....

When we retire and pull out the money from our 401k's, we pay INCOME TAX rates for all the money in our 401k's, NOT Capital gains tax rates

The fact is when we pull all of the money out of our 401K, if we put it in an IRA account, we would only pay income tax on the portion we withdraw each year. This withdrawal will be taxed as ordinary income, but is exempt from any payroll taxes.

 

[Seawytch]

Yeah, damn me for choosing to serve my country. Why didn't you choose to serve?

Unless you're active duty in the military, the country is serving you, not vice versa.

I'm retired military. I already served my country. Now I serve the voters of my county.

 

[RetiredGySgt]

Yeah, damn me for choosing to serve my country. Why didn't you choose to serve?

Unless you're active duty in the military, the country is serving you, not vice versa.

I'm retired military. I already served my country. Now I serve the voters of my county.

He is one of the brain dead that believe somehow Military don't rate retirement for their service or equates it as a hand out.

 

[depotoo]

this site gives a real world, predominately easy to understand explanation of what capital gains are, how they are taxed, how you area taxed more, (even though some want to say they aren't) as well as the facts that losses you cannot even fully deduct. Here is a small sample for you-
http://www.econlib.org/library/Enc/CapitalGainsTaxes.html

The tax treatment of capital gains has other unique features. One is that capital gains are not indexed for inflation: the seller pays tax not only on the real gain in purchasing power, but also on the illusory gain attributable to inflation. The inflation penalty is one reason that, historically, capital gains have been taxed at lower rates than ordinary income. In fact, Alan Blinder, a former member of the Federal Reserve Board, noted in 1980 that, up until that time, “most capital gains were not gains of real purchasing power at all, but simply represented the maintenance of principal in an inflationary world.”
Another strange feature of the tax is that individuals are permitted to deduct only a portion of the capital losses they incur, whereas they must pay taxes on all of the gains. When taxpayers undertake risky investments, the government taxes fully any gain they realize if the investment has a positive return. But the government allows only partial tax deduction (of up to three thousand dollars per year) if the venture results in a loss. That introduces a bias in the tax code against risk-taking

 

[Seawytch]

Unless you're active duty in the military, the country is serving you, not vice versa.

I'm retired military. I already served my country. Now I serve the voters of my county.

He is one of the brain dead that believe somehow Military don't rate retirement for their service or equates it as a hand out.

Interesting (and thankfully unique) point of view.

 

[OohPooPahDoo]

Fact Check: Is Romney's tax rate really lower than yours? | Fox News

IRS data from 2010 shows someone making between $50,000 and $75,000 on average pays an effective rate of 7.8 percent. Even someone making between $100,000 and $200,000 pays a 12.1 percent rate -- also lower than Romney's.

From your link:

While Romney may or may not pay less than the average middle-class earner -- depending on how one defines middle class and how one defines tax rate -- one thing is clear: Romney does pay at a lower rate than the typical wealthy person.

Read more: Fact Check: Is Romney's tax rate really lower than yours? | Fox News

And yes, his tax rate is much lower than mine. He pays less than half my tax rate. Period.

Not if you count the fact that he's taxed twice on the same money. Once at up to 35 percent and again 15 percent.

No he isn't. Capital gains is only levied against GAINS, not principal.

 

[OohPooPahDoo]

Our we could switch to something like a consumption tax, and get rid of income taxes althoughter.

There is a documented, well researched tax plan called the Fair Tax based on consumption that not only eliminates income taxes, it eliminates ALL federal taxes.

Very few politicians are interested in this plan, and even fewer know anything about it.

Right, it eliminates ALL federal taxes - excep the one it creates.

 

[Charles_Main]

Fact Check: Is Romney's tax rate really lower than yours? | Fox News

IRS data from 2010 shows someone making between $50,000 and $75,000 on average pays an effective rate of 7.8 percent. Even someone making between $100,000 and $200,000 pays a 12.1 percent rate -- also lower than Romney's.

Romney pays the exact same rate any American who invests money and lives on Capital Gains would pay.

I would also note, that just last year, Obama only paid 20%.

The capital gains tax rate is simply too low. When Reagan convinced everyone to bring the top tax rate down to 28%, he also agreed to increase the capital gains rate to 28%, saying that capital gains should be taxed at the same rate as earned income. With this I do not agree, but I do believe the capital gains rate should be closer to 25%. The only time since the beginning of the 20th century that the capital gains tax was actually lower than it is today was in the 1920's, before the Great Depression.

The Short Term Rate is Closer to 25%, You only get 12 and 14% on long term Gains.

However that is an area where people play with the Law to their Advantage, or the law simply lets them get away with it, By It I mean having what are really Short Term Gains taxed at the Long term rate.

I do not agree with Raising the Capital Gains Rates, but am Open to Reforming they way some get away with Claiming Short term Gains as long. I am a firm believer that Investment is what Drives our Economy and Keeping Cap Gains Rate low is how you Encourage Investment.

If you want to Raise the Cap Gains Rates, then lets talk about raising the Amount of Losses Investors can right off on their Taxes as well. Because the Current system seeks to Punish People when their Investments pay off, and does very little for them when they Lose money.

 

[Charles_Main]

From your link:



And yes, his tax rate is much lower than mine. He pays less than half my tax rate. Period.

Not if you count the fact that he's taxed twice on the same money. Once at up to 35 percent and again 15 percent.

No he isn't. Capital gains is only levied against GAINS, not principal.

It is assumed that the Principle was at one time Taxed as Income before it was Invested. Which in most cases is the Truth.

 

[OohPooPahDoo]

Not if you count the fact that he's taxed twice on the same money. Once at up to 35 percent and again 15 percent.

No he isn't. Capital gains is only levied against GAINS, not principal.

It is assumed that the Principle was at one time Taxed as Income before it was Invested. Which in most cases is the Truth.

Yes. So what? Its not double taxation. THe principal is taxed as ordinary income, the gains as capital gains, neither is taxed as both.