IRS tax stats link
So Romney paid (almost) 15% in 2010 and 2011 - and maybe nothing at all in the prior 2 years. How's that stack up with others?
The chart shows the effective tax rate as a percent of AGI for 2000 (pre-Bush tax cuts, in red) and 2009 (in black). Romney's taxes sound low because they are low - about 1/2 of what others in his income range paid on average. Mr. Buffett's taxes are even lower - but he agrees that they should be raised, unlike Mr. Romney who wants to pay less.
President Obama looks typical for his income - and Mr. Gingrich must feel pretty foolish when he looks at the others!
There are many, many problems evident on this chart. Start with the unfunded cost of the Bush tax cuts. Then proceeed to the fact that rates peak at an income of $1M and then decline on average. Then finally throw in the absurdly low rates that some individuals like Romney and Buffet enjoy.
And remember, this data is federal income tax only - it doesn't include payroll taxes or state/local sales and income taxes, which we know are regressive.
We need big time tax reform.
- Millionaire surcharge
- Buffet rule (should be called the Romney rule)
- Equal treatment of wages and investment income
- Estate tax increases and exemption decreases
- Wealth tax
- Much higher payroll tax cap