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Romney's tax returns force debate about tax code

Tuesday, January 24, 2012 - 02:08

Jan. 24 - Reuters Tax Columnist David Cay Johnston says that Romney revealing his tax details could prompt the other Republican presidential candidates - and the nation - to debate the ''separate but unequal'' U.S. tax code.

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It's a great thing -- he's running for president because it's making us have a debate about how we tax people. He's paying taxes at the same rate as a single school teacher who's making 54000. Dollars a year. That's because congress has two systems of taxation around separate and unequal. Once for wage earners and most business owners and the others for managers of private equity funds like mr. Romney and hedge funds. How did the -- managed to get a hundred million dollars of their suns without paying any tax. Well it's because -- evidently they gave them something called carried interest. That's the compensation that mr. Romney got in large part for running Bain capital management. It's not let's walk that he got it's a right to the future profits. If you give stop congress says you have to value but if you have a right to future profits. You can value it at zero. Net result. The Romney's sons now have a hundred million dollar trust fund. And no gift tax was paid according to the Romney's attacks -- Mitt Romney is by far the wealthiest person who has ever run for president. The indications are that his wealth is in the neighborhood of 20250. Million dollars plus a hundred million dollars that was given to the -- Nobody who's run for office has that kind of money George W. Bush for example had a network from the neighborhood of fifteen million dollars which is less than the Romney's make. In a year. Most corporations. That you heard out. General Motors General Electric there's a double tax the corporate profits tax -- them when people receive dividends they pay a tax. But many of the businesses organized by mr. Romney when he ran Bain Capital organized as what are called pass through entities. There is no corporate income tax on them only tax is the dividend tax and it's only get 15%. That gives those businesses an enormous advantage over other enterprises and we need to debate whether that makes cents.

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Romney's tax returns force debate about tax code

Tuesday, January 24, 2012 - 02:08