Gingrich Pays Much Higher Tax Rate Than Obama

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?…

 

Libertarian “Golden” Boy/Bachmann Tebow Complex

Ron Paul’s Golden Portfolio

Ron Paul is well known for his pro-gold policies.  He is a little less well known for his golden portfolio.  While most Americans have been watching their retirements quickly shrink, Ron Paul is doing OK.  He might not be as rich as Mitt Romney, but he could buy Tim Pawlenty.

Is Paul ready for the leftwing media meat grinder?

The question is if this will become an issue for Ron Paul down the road.  Unlike half the GOP field this year, Ron Paul had not been considered a threat so no vetting (as the left calls it) or smear (as the right calls it) has taken place yet.  Still, could Paul’s golden investments and golden ambitions of a gold backed currency be viewed by liberal opponents as a conflict of interest?  Already liberal bloggers are pointing out Paul’s use of earmarks, so more “vetting” may be on the way.

One question that had me scratching my head is why Paul would advocate fixing the debt ceiling deal by having the Fed write off the QE1 and QE2 loans it had printed and made to the Treasury.  Of course, this would make the hundreds of billions involved unrestricted cash and could result in inflation. At the same time he voted (contrary to his son Rand) against Cut, Cap and Balance.  Ron Paul’s constant votes against any appropriations bill that doesn’t adhere strictly to the constitution should be viewed as a principled approach to representing the people who sent him to DC.  But it sure hasn’t hurt his portfolio either, as imperfect but more conservative bills fall to more liberal compromises that can pass without him and others who vote like him.  Paul has bet on instability and it has paid off.

By the way, Paul’s holdings don’t include major stockpiles of gold, but are actually all in gold mining companies.

Should Bachmann Be Third String?

Meanwhile, on the mainstream side of the GOP Michele Bachmann is suddenly finding herself where Pawlenty was just a couple weeks ago: a solid third place.

This made me think of Tim Tebow who was recently put at the Broncos’ third string behind Brady Quinn and Kyle

Tebow was local hero as a Gator

Orton.  I love Tim Tebow.  When he gets the ball and runs, or dumps those short touchdown passes over the defensive line’s heads, we all go nuts here in Florida.  Bronco’s preseason makes Floridians happy because we get to see Tebow.  He was a local champion who got everyone on fire for him, and when he went pro his Broncos’ #15 jersey was the number one seller in the whole NFL.

But Tebow is not a polished player.  His faith endears him to Christian NFL fans.  The excitement he brought to the Gators with his competitive and unpredictable playing style built him a huge fan base.  But his accuracy is off.  He is no Tom Brady or Peyton Manning.  He might fill the stadium, but he is not the quarterback to bring the Broncos to the Superbowl this year.

Can Bachmann be the GOP starter?

So why does he make me think of Michele Bachmann?  Bachmann has a huge fan base.  She became a national sensation as the darling of the TEA Party.  She fills stadiums and is exciting to watch and listen to.  But she is unpolished.  Her accuracy is off.  She’s no Mitt Romney or Rick Perry.

So for now, like Tebow, Bachmann is going to remain third string until she can prove she’s a starter.

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