First
of all, do you think for one minute that a man who garners the sort of
eight-figure income that Romney does is not high on the target list at the IRS?
Mr. Harry Jacobson, writing for Forbes Magazine, points out what those who are
considered to be rich pay in taxes in a given year. “Let’s look at
the numbers. Using data from the Internal Revenue Service in 2009, the top 1%
of earners, including individuals with incomes of $343,927 or greater,
represented 16.9% of all income and paid 36.7% of all federal taxes. Their
average tax rate was 24.01%. The top 0.1% who had incomes of $1,432,890 or
greater represented 7.8% of all income and paid 17.11% of all taxes. Their
average rate was 24.3%.”
The top 1% of those who earn income in the United States
of America pay close to 37% of federal taxes. The class warfare mantra is that
the wealthy do not pay their fair share of taxes. On the surface this is
laughable. It is because of the very wealthy that the United States has enjoyed
such an amazing level of productivity and business growth. As I mentioned in a
previous article, you don’t get a job from a poor person.
Mr. Jacobson further elaborates, “The average tax payer
in the top 0.1% of all earners (the group which includes the vast majority of
millionaires and billionaires) pays a tax rate over four (4) times that of an
average secretary.” Mr. Romney is squarely in this category.
“I pay all the taxes that are
legally required and not a dollar more.” Romney said earlier this year. “I
don't think you want someone as the candidate for president who pays more taxes
than he owes.” Good point!
The attempt by his opponents
is to paint Romney as a man who is not being honest in his financial dealings.
It has been reported that he has accounts in Switzerland and the Cayman
Islands, implying that he’s avoiding paying taxes on this money. The truth is
he has declared these monies and is not avoiding paying taxes.
Admittedly, Mr. Romney is
fabulously wealthy. You and I could not even begin to appreciate just how much
money this man has made in his life. However, I remember as a kid growing up
that part of the American Dream was to get an education, work hard and you
might just become a millionaire some day. It was the classic Horatio Alger
story. Alger was born on January 13, 1832 and died July 18, 1899. “He was a
prolific 19th-century American author, best known for his many formulaic
juvenile novels about impoverished boys and their rise from humble backgrounds
to lives of middle-class security and comfort through hard work, determination,
courage, and honesty.” This story of “rags-to-riches” used to be touted as the
model for success, and people would applaud the hard work and grit of such an
individual. When did it become wrong in the United States for a person to
succeed and prosper?
Now here’s the kicker. “When Mr.
Romney, a multimillionaire and presidential candidate, revealed that while he
reported he made $42.5 million over the past two years (2009-2010), he also
gave away $7 million.” That, my friends, is 17% of his income which he chose to
give to charitable organizations. Putting that another way – For every six
dollars he made, he gave one dollar to a charity. Just as a counter-point, Vice
President Joe Biden and his wife had a combined income of $380,000 in 2011. “On the
latest return, the Biden’s listed $5,540 in donations to charity.” Ummmm, this
means the Biden’s gave away 1½ percent to charity. The Obama’s made over $2.6
million in 2005-2006. Their charitable giving was $138,000. That figures out to
5% of their income being donated to charitable organizations.
It is interesting to see what
organizations the Romney’s support. They have been Mormon’s for several
generations, and Mitt has been very involved in the leadership of his church.
Practicing Mormons are expected to tithe 10% to the church, officially known as
the Church of Jesus Christ of Latter-Day Saints. So that’s an automatic.
Besides this, in 2010 “the
largest beneficiaries of the Tyler Charitable Foundation (a trust fund
established by the Romney’s) included the Friends of George W. Bush Library,
and the Center for Treatment of Pediatric MS (Multiple Sclerosis). However, the
foundation also made contributions to organizations including the US Equestrian
Team Foundation, Harvard Business School, and Homes for Our Troops. In past
years, some of Romney’s contributions have gone to conservative groups such as
the Heritage Foundation, the Becket Fund (for religious rights legal aid), and
the Federalist Society, which seeks reform of the current legal system. In
2007, he wrote a check to Citizens for Limited Taxation, a Marblehead,
Massachusetts organization that strives to limit taxes and the size of
government.”
So
let me conclude by asking some questions. Does Romney make a lot of money? Without
a doubt. Does he pay his taxes? Certainly. Does he give to charities?
Unquestionably. So ignore his opposition’s flailing (and failing) attacks which
call to question his financial ethics. Armed with the facts, you can see
through the smoke and mirrors.
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