The 99% should chew on this: Compared to Obama’s 24% effective income tax rate, Newt is paying a lot more. Newt is paying an effective income tax rate of 31%, which is probably higher than even Warren Buffett’s secretary.
Here is my question. Most people don’t know how to read their own tax return. What is the big deal about releasing your tax returns? Unless of course you are one of Obama’s cabinet members, in which case your tax return typically reads like an Enron financial statement. Newt may think his higher tax rate than Obama and Romney will be a good thing to get out there. Probably true. Although, Newt should be hoping no one takes notice of his anemic giving percentage which hovers around 2% (although much higher than Biden’s charitable giving which is somewhere around .1%).
When Romney guestimated his tax rate at around 15%, I was surprised to see many columnists talk about how “many families” pay a higher rate than that. Well, I do taxes for a living, so I thought I would apply some of my expertise and see what “many families” actually means these days. To pay a rate of 15% on income taxes, a husband and wife with absolutely no deductions would have to make more than $96,000 a year. What I mean by no deductions is no mortgage, no kids, no education costs, no student loan interest, no retirement, etc. The median income for dual income households is around $67,000. So do you pay a higher income tax rate than Mitt Romney? I’m going to go out on a statistical limb and say the answer is probably no. If you do, did I mention I’m a tax accountant?…
Filed under: About the Candidates, Mitt Romney, Newt Gingrich, President Obama | Tagged: 15, Barack Obama, biden, Gingrich, giving, higher taxes, Mitt Romney, newt, newt gingrich taxes, newt pays a higher rate, obama, obama taxes versus newt taxes, Romney, taxes |