After bowing to the pressure of his fellow GOP presidential candidates, Mitt Romney the former front runner released his tax forms for 2010 and 2011. The tax forms show that Mitt paid 13.9 percent tax rate in 2010 and his projected rate for 2011 is 15.4 percent.
Romney’s tax rate is far lower than the tax rate of 35 percent for high earners. His greatest contender Newt Gingrich pays an effective tax rate of 31.7 percent.
Romney pays such a low tax rate because his income comes from investments, capital gains and dividends. Earned income is taxed at a higher rate than income generated from investments.
Determining the tax rate for capital gains and investments can be difficult unless a individual or business enlists the assistance of a
tax attorney.
To Democrats this shows how out of touch with the working people that Mitt Romney is. The Obama administration has proposed a tax increase on capital gains.
In contrast, Republicans would like to eliminate taxes on capital gains.
According to think tank, the Tax Policy Center about 46 percent of Americans pay no taxes because they are poor. Another think tank, The Tax Foundation estimated that the average effective tax rate for Americans is11 percent.
A
tax lawyer can outline the various deductions and write-offs available to a taxpayer. The applicable deductions change every year, but
tax attorneys stay abreast of these changes and can be an asset when completing those returns.
