Skip to main content

View Diary: Conservative Exceptionalism (184 comments)

Comment Preferences

  •  And only on "adjusted income" (1+ / 0-)
    Recommended by:

    Most of the income for the wealthy never becomes "income" so it never gets taxed at all.  Here are some things that are not taxed:

    - Income earned in retirement accounts
    - Income from municipal bonds
    - Income from master limited partnerships (90% deferred).
    - Income from real estate, offset by expenses

    And those are just easy tax-avoidance schemes for amateur investors.  The pros, like Romney, have shelters in the Cayman islands and Swiss bank accounts.

    Romney's tax rate last year was 11%, but he skipped charitable deductions so the rate would be 14%.  Presumably he will now file an amended return to take it back to 11%.  If you add back in all of the income that the IRS doesn't consider income, he probably paid closer to 5%.  I have no doubt that his total tax rate is less than the 7.65% paid by almost everyone in payroll taxes alone.

    Unfortunately, the middle-class is not hip to all of this tax avoidance.  They have no idea how badly they are being screwed!

    50% -- as if!

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site