Mitt Romney's Tax Evasion Tax Return is a How To do It
Thank you, Mitt Romney! His tax return shows how the rich pull off with paying a lower percentage of taxes than those in the middle class. Now, we can see why the rich are getting richer. It is not their fault, I guess we all would be using the same techniques if we had that kind of money.
His total income for last year was $21,646,507 dollars. He has two exemptions. On line 7 for wages and salaries, he has nothing. Huh? Amounts on this line can be taxed up to 35%. Currently, all the profits and interest he made from Bain Capital and others are considered capital gains and at most are taxed at only 15%. Many think this should be changed or be considered income, which it is! On Line 8a, Taxable Interest he lists $3,295,348. On line 9a, ordinary Dividends, the amount listed is $4,923,340. At line 9b, he lists $3,327,678 in qualified Dividends, which are from stock held at least two months and paid by any domestic or foreign corporation. These are only taxed at 15%. On line 10, Taxable refunds, the amount is 826,064.
Romney listed $593.996 as Business Income. They did not claim and home-office deductions on Schedule C instead using them for Director Fees and Speaking Fees. Home office deductions are red flags to IRS. Smart guy. Romney also listed $12,573,249 in Capital Gains, most were long term and again taxed at only 15%. The tax laws allow investors numerous ways to avoid paying tax from gains or losses with offsetting them. For example, a loss on land held as investment can offset the gain from stock. Net capital losses can shelter $3000 a year from tax.
On Line 40, Itemized Deductions, the amount is $4,519,140. They donated $3,000,000, about 14% of their adjusted income. The Romneys made noncash gifts like appreciated stocks to avoid paying captial gains on appreciation while getting a full deduction. Smart guy. If you donate $8000 of stock, you can then deduct it. Line 43 is the Taxable income which came to $17,127,367. His tax owed for this came to $2,873,054. The biggest lesson is that like most rich people, Romney has 17 offshore investment funds that avoid taxes or pay greatly reduced amounts. Smart guy, Mitt is.
Newt Gingrich is no different, just not as rich, but partakes in the same tax schedules that favor the wealthy. Republican or Democrat, makes no difference. They all do it.