‘Romney Loophole’ not fair to others
Mitt Romney made $42.7 million in the last two years and paid only 14.5 percent of it in taxes. He paid this low rate due to what I call the “Romney Loophole.”
The Romney loophole allows money earned from his corporate raider days – called “carried interest” – to be taxed at a much lower rate than what middle-class Americans pay. And as a further bonus, carried interest is not taxed for Social Security (6.2 percent) or Medicare (1.2 percent), which other hard-working, middle-class families pay.
Romney wants to pay even lower taxes under the Rep. Paul Ryan budget scheme that all Republican Congress members, including New Hampshire Rep. Charles Bass, supported. It would lower taxes on millionaires by an additional 12.5 percent, while giving the average middle class a tax cut of less than 1 percent.
This is on top of the George W. Bush tax cuts, which cost America more than $4 trillion in the last decade.
The Republican myth that “we can’t raise taxes on the job creators” has proven to be false. The decade of the Bush tax cuts was the lowest job-creation decade in 50 years and led to the great Bush recession of 2008.
President Barack Obama wants to end Romney loophole and special-interest tax breaks on millionaires. The “Buffett rule” would require rich guys to pay at least 30 percent.
It is only fair that we stop giving tax breaks to people who don’t need them. Invest in America, not the wealthy.
EDITOR’S NOTE: The Paying a Fair Share Act of 2012, also known as the “Buffett rule,” fell nine votes short of the 60 needed to take it up for consideration in the U.S. Senate last week.