mitt romney

[bob561941]

can anybody explain to me how the republican candidate for the american presidency gets awa with paying so little income tax ?.

[andrew1707]

I believe most of it was interest on money in savings accounts which has a lower tax rate.

[jackthehat]

He can afford to employ the very best Tax Avoidance Lawyers and schemes...

It'll (probably) be entirely legally, if not morally, correct.

[dr b]

I think the first answer is more accurate. Since he is "retired" most of his income comes from dividends and capital gains, which are taxed at a much lower rate than ordinary income. Also, much of his wealth is in an "Individual Retirement Account" (IRA) which is tax-deferred until you have to start withdrawing money at around age 65. When you do, that money is taxed as ordinary income. So many "tax experts" have opined that he's really not optimizing because he's going to be paying way more tax than he might otherwise have to when he starts withdrawing $$.

Also, his tax returns indicate that he gave more than $3 million to charity last year, so, wow, what a terrible guy.

[VHG]

>>>gave more than $3 million to charity last year, so, wow, what a terrible guy.

Being rather cynical, he may of course have done this to make him look "good" in the upcoming Republican elections.

Nothing looks better than giving money to charity, particulalry if you are aware you may get "found out" for avoiding paying full income tax.

[dr b]

How is he not "paying full income tax"? He is paying exactly what the law says he must.