Breaking News - Mitt Romney claims to have paid taxes

[Slyfox696]

Mitt Romney has paid no less than 13% in personal income taxes over the past ten years, he said Thursday.

"I did go back and look at my taxes and over the past ten years I never paid less than 13%. I think the most recent year is 13.6 or something like that. I paid taxes every single year," Romney said, explaining he had gone back to check his records after being asked by a reporter about the tax rates he had paid. "Harry Reid's charge is totally false. I am sure waiting for Harry to put up who it was that told him what he says they told him – I don't believe it for a minute by the way – but every year I paid at least 13% and if you add in addition the amount that goes to charity, why, the number gets well above 20%."

http://politicalticker.blogs.cnn.co...ast-13-in-taxes-for-last-ten-years/?hpt=hp_t2

Let's ignore for a moment that we are being told we simply have to take Mitt Romney at his word, since he's not going to release these returns. Does anyone else see the problem with a man who made $21.6 million in 2010 paying a lower tax rate than people who make $36,000 a year? Just to put this in perspective, the starting salary of a teacher where I work is $29,000. So at the end of the year, Mitt Romney is paying roughly the same percentage of income as a first year teacher out of college, and paid a lower rate than I did last year.

But what's truly amazing is that Romney is actually PROUD of this. It's simply bewildering to think that Americans want to trust this man with revising tax codes.

2012 Tax Rates: http://www.forbes.com/sites/moneybuilder/2011/09/30/2012-federal-income-tax-brackets-irs-tax-rates/

 

[klunderbunker]

But he's a job creator, and by creator I mean a person whose company would shut down a bunch of companies and profit off of those closures, so we can't expect him to pay taxes. I mean, lowering taxes on the rich has done SO well for the economy in the last 10 years, right GOP?

 

[Slyfox696]

In fairness, the problem I have is not political party related, it just so happens Romney is the one mentioned and is a Republican.

 

[klunderbunker]

I know. I find the GOP tax policies to be absurd and a failure, but they make rich people richer and poor people poorer so all is right with the world.

 

[Davi323]

Did he do anything Warren Buffet doesn't do with his taxes? Surely the IRS would know if he paid taxes, so, if he hasn't, wouldn't they have audited him? They catch all of those celebs who skip paying taxes, surely they would catch a prominent politician, especially one who is running for President. Of course Mitt Romney has paid his taxes, something like that would have clearly been vetted before hand. Stop being ridiculous.

 

[klunderbunker]

There's a theory that says Barack Obama isn't a citizen of the United States and is really a Kenyan/Indonesian/African/whatever the current nutjob idea is. If that can be put to the test, Romney paying a rate of zero taxes (not that he didn't file, but that his rate was zero. Big difference) can be as well.

 

[One Punch Doug Crashin]

in actuality do these politicians ever pay their taxes?

 

[George Steele's Barber]

Did he do anything Warren Buffet doesn't do with his taxes? Surely the IRS would know if he paid taxes, so, if he hasn't, wouldn't they have audited him? They catch all of those celebs who skip paying taxes, surely they would catch a prominent politician, especially one who is running for President. Of course Mitt Romney has paid his taxes, something like that would have clearly been vetted before hand. Stop being ridiculous.

A lot of conservatives are extremely anti-tax code and IRS. I think what we would find if we saw his returns is that he took full advantage of the tax code that so many hate. Pushing the boundaries of the code as far as anyone could take it. Nothing necessarily illegal but hard to stomach for someone that can't afford a shitty accountant let alone a team of brilliant ones.

My biggest quandary in all this is why is his wife fielding these questions. I doubt Mitt can fully grasp his tax returns let alone his wife.

Or maybe he made charitable contributions to Al Qaeda.

 

[klunderbunker]

A lot of conservatives are extremely anti-tax code and IRS. I think what we would find if we saw his returns is that he took full advantage of the tax code that so many hate. Pushing the boundaries of the code as far as anyone could take it. Nothing necessarily illegal but hard to stomach for someone that can't afford a shitty accountant let alone a team of brilliant ones.

My biggest quandary in all this is why is his wife fielding these questions. I doubt Mitt can't fully grasp his tax returns let alone his wife.

Or maybe he made charitable contributions to Al Qaeda.

That's basically what it boils down to. At the end of the day if a presidential candidate in today's economy paid zero in taxes while the majority of the country is paying 20-30%, he'd have trouble getting more votes than Castro. It may be legal, but it's not going to play at all.

 

[jmt225]

Let's ignore for a moment that we are being told we simply have to take Mitt Romney at his word, since he's not going to release these returns. Does anyone else see the problem with a man who made $21.6 million in 2010 paying a lower tax rate than people who make $36,000 a year? Just to put this in perspective, the starting salary of a teacher where I work is $29,000. So at the end of the year, Mitt Romney is paying roughly the same percentage of income as a first year teacher out of college, and paid a lower rate than I did last year.

That is infuriating. I'm no Republican basher (I actually like Paul Ryan a lot), but this is the kind of stuff that really pisses me off and makes me contain bitterness towards the entire party since I know most of them abide by this way of living. And what makes it even worse is the average Republican where we live, who most make around or less than $40,000 a year, pay no attention to things like this and put more of their energy fighting against abortion, gun control, gay marriage... aka shit that doesn't really affect their lives in any way, shape, or form. Liberals are guilty of that too, but as KB mentioned, these kind of tax rates favor the GOP and it's just infuriating like I said.

And the fact that the government pisses our tax $$$'s down the toilet anyway just makes it an even tougher pill to swallow. But the average man like us live in fear of not following the rules since it can come back and bite us in the ass, and if that happened, the chances of us recovering to live a comfortable life are slim to none. The rich though, they really have nothing to worry about as long as they don't surround themselves with bottom feeding scumbags. Even in the rare, and I mean rare, chance they do get caught cheating on their taxes, they will still recover. That's not the case with the average Joe Blow.

 

[Slyfox696]

Did he do anything Warren Buffet doesn't do with his taxes?

I imagine Buffet does the same thing. Doesn't make it fair.

Surely the IRS would know if he paid taxes, so, if he hasn't, wouldn't they have audited him? They catch all of those celebs who skip paying taxes, surely they would catch a prominent politician, especially one who is running for President. Of course Mitt Romney has paid his taxes, something like that would have clearly been vetted before hand. Stop being ridiculous.

I'm guessing you're addressing this to KB, but if it's to me, I just want to point out that the ridiculous part is where this multi-millionaire paid a lower percentage in federal income tax than I did.

 

[klunderbunker]

I imagine Buffet does the same thing. Doesn't make it fair.



I'm guessing you're addressing this to KB, but if it's to me, I just want to point out that the ridiculous part is where this multi-millionaire paid a lower percentage in federal income tax than I did.

To go along with this, there was a tax plan proposed a few months ago which said something to the effect of a millionaire shouldn't pay less in taxes than his secretary. Naturally the GOP said no way and it was voted down.

It's name: the Buffet Rule.

 

[Slyfox696]

Here's a great video from Mitt Romney (first 10 seconds most relevant).


Why is this significant?

In his 2010 “Roadmap for America’s Future,” [Paul] Ryan proposed eliminating taxes on corporate income, estates, dividends, interest and capital gains.

So let's see...Romney does not pay his fair share of taxes, and admits if his Vice President's budget were to be adopted, he wouldn't pay any taxes.


Have to love the wealthy. What I wonder is if these people GENUINELY believe that eliminating taxes will stimulate the economy or if they are just looking out for themselves and their campaign donors. It's one thing to genuinely believe what they are saying, I just don't know how they can.

 

[ProudFlairMark]

I don't know what median income is amongst those who visit these boards, but I'll volunteer mine to offer perspective on why I tend to lean right, despite growing up ultra liberal in Queens, NY, on most fiscal issues, especially those involving taxes.

I'm the sole provider for a family of 5. My wife is a homemaker and rears our three children, ages 8, 6, and 21 months. I am the General Manager for national restaurant brand and I make anywhere between $65,000 and $82,000 a year depending on bonus. Our bonus structure is based off our ability to meet or exceed certain targets. I'm fairly amazing at my job, so I tend to make closer to the $80,000 than the $60,000. Even with that income, let me tell you it is not easy. I'd like to believe we live comfortably. Good stewards of our money, we evaluate every purchase and make sure every dime that's being spent isn't "dead money."

Now my first year as a GM, I paid about $21K in taxes, claiming Married and 1 dependent on my W-4. I wanted to make sure I covered my tax debt. In the end, I returned about $6,000. Essentially, after filing, the government ended up with $15,000 of my money. Now, I have a fairly good understanding in how my government works, so the fact that I paid that much is not the disconcerting part of this story. One of my employees named Samantha was a server at the restaurant I was managing and she alone is the reason I tend to lean right on all things financial.

Samantha had five children, with 3 different men. Her "husband" at the time, Chuck, was imprisoned for drug trafficking. He ended up being paroled during this tax year. Keep that in mind as it will come into play a little later. So Samantha receives, at that point, nearly $900 a month in food stamps, Section 8 housing (which allowed her to rent a 5 bedroom home for a modest $300 per month), a free government cell phone, vouchers for free furniture and child care assistance. I couldn't make this up if I tried. Now when she filed her taxes, she could receive the EIC (earned income credit, for those of you without children) for up to 3 children. So do you know what her solution was? Sell her children. That's right! Sell her children. Well, not so much sell - loan. She agreed to allow another employee to claim her children for tax reduction purposes for the hefty sum of $1,500 a child, netting her an extra $3,000 back. Grand total on her tax liability? $0. Yup. She didn't pay a dime in taxes. She claimed "Exempt." Total refund? $12,000, with the $3K for the loaner children included. Samantha, while never declaring her full tips (I've yet to meet a server who does), determined her exact amount per year that she could earn in order to receive the maximum return. All this while routinely bringing in well over $150 per shift in tips, working 5 days a week. Samantha drove a nicer car than I did, had nicer furniture than I did and ate better than I did (often bragging "Lobster - AGAIN!"). Upon being paroled, her "husband" also qualified for government assistance and worked under the table - which, for those of you too young to understand that phrase, means tax free.

Make no mistake, I am not begrudging anyone their fair share in life. In fact, despite some glaring character flaws (and who doesn't have them?), Samantha was an amiable person. Obviously she was/is fairly intelligent to exploit the system like that. My enmity is a result of shouldering her burden and then some. And her's is NOT a unique case. I see it all the time. It's sickening and truly does make one wonder why I work 80 hours a week, trying to do the best job I can, when leeches are out there sucking the system dry.

This is just my rant on taxes and I apologize if it raises the ire of some. I am NOT a T.E.A party member, nor am I staunch Republican. In fact, I tend to lean towards the center on a lot of social issues (especially those relating to where and with whom you lay your head at night and SOME government funded programs). I realize mine is not a popular opinion. Perhaps I should continue to limit myself to wrestling.

 

[Slyfox696]

I don't know what median income is amongst those who visit these boards, but I'll volunteer mine to offer perspective on why I tend to lean right, despite growing up ultra liberal in Queens, NY, on most fiscal issues, especially those involving taxes.

I'm the sole provider for a family of 5. My wife is a homemaker and rears our three children, ages 8, 6, and 21 months. I am the General Manager for national restaurant brand and I make anywhere between $65,000 and $82,000 a year depending on bonus. Our bonus structure is based off our ability to meet or exceed certain targets. I'm fairly amazing at my job, so I tend to make closer to the $80,000 than the $60,000. Even with that income, let me tell you it is not easy. I'd like to believe we live comfortably. Good stewards of our money, we evaluate every purchase and make sure every dime that's being spent isn't "dead money."

Now my first year as a GM, I paid about $21K in taxes, claiming Married and 1 dependent on my W-4. I wanted to make sure I covered my tax debt. In the end, I returned about $6,000. Essentially, after filing, the government ended up with $15,000 of my money. Now, I have a fairly good understanding in how my government works, so the fact that I paid that much is not the disconcerting part of this story. One of my employees named Samantha was a server at the restaurant I was managing and she alone is the reason I tend to lean right on all things financial.

Samantha had five children, with 3 different men. Her "husband" at the time, Chuck, was imprisoned for drug trafficking. He ended up being paroled during this tax year. Keep that in mind as it will come into play a little later. So Samantha receives, at that point, nearly $900 a month in food stamps, Section 8 housing (which allowed her to rent a 5 bedroom home for a modest $300 per month), a free government cell phone, vouchers for free furniture and child care assistance. I couldn't make this up if I tried. Now when she filed her taxes, she could receive the EIC (earned income credit, for those of you without children) for up to 3 children. So do you know what her solution was? Sell her children. That's right! Sell her children. Well, not so much sell - loan. She agreed to allow another employee to claim her children for tax reduction purposes for the hefty sum of $1,500 a child, netting her an extra $3,000 back. Grand total on her tax liability? $0. Yup. She didn't pay a dime in taxes. She claimed "Exempt." Total refund? $12,000, with the $3K for the loaner children included. Samantha, while never declaring her full tips (I've yet to meet a server who does), determined her exact amount per year that she could earn in order to receive the maximum return. All this while routinely bringing in well over $150 per shift in tips, working 5 days a week. Samantha drove a nicer car than I did, had nicer furniture than I did and ate better than I did (often bragging "Lobster - AGAIN!"). Upon being paroled, her "husband" also qualified for government assistance and worked under the table - which, for those of you too young to understand that phrase, means tax free.

Make no mistake, I am not begrudging anyone their fair share in life. In fact, despite some glaring character flaws (and who doesn't have them?), Samantha was an amiable person. Obviously she was/is fairly intelligent to exploit the system like that. My enmity is a result of shouldering her burden and then some. And her's is NOT a unique case. I see it all the time. It's sickening and truly does make one wonder why I work 80 hours a week, trying to do the best job I can, when leeches are out there sucking the system dry.

This is just my rant on taxes and I apologize if it raises the ire of some. I am NOT a T.E.A party member, nor am I staunch Republican. In fact, I tend to lean towards the center on a lot of social issues (especially those relating to where and with whom you lay your head at night and SOME government funded programs). I realize mine is not a popular opinion. Perhaps I should continue to limit myself to wrestling.

Everything you said there makes complete sense. And I get the feeling the part that bothers you is not so much how much you paid in taxes, but what Samantha did to exploit the system.

I have no use for people like her. I am fully in favor of programs to try and minimize such blatant abuse of the system. But I'd rather see her be able to do what she did than to see a couple of children starve on the streets because our government wouldn't step in to help them.

It's a tough situation, and I certainly understand your frustrations. Lord knows, where I live I see people who claim to not be able to get their children to school on time because they can't afford gas for their car, and yet still have plenty of money to come into school smelling like cigarettes and booze. But like I said, the answer is stricter enforcement, not removal of benefits.

 

[klunderbunker]

I don't know what median income is amongst those who visit these boards, but I'll volunteer mine to offer perspective on why I tend to lean right, despite growing up ultra liberal in Queens, NY, on most fiscal issues, especially those involving taxes.

I'm the sole provider for a family of 5. My wife is a homemaker and rears our three children, ages 8, 6, and 21 months. I am the General Manager for national restaurant brand and I make anywhere between $65,000 and $82,000 a year depending on bonus. Our bonus structure is based off our ability to meet or exceed certain targets. I'm fairly amazing at my job, so I tend to make closer to the $80,000 than the $60,000. Even with that income, let me tell you it is not easy. I'd like to believe we live comfortably. Good stewards of our money, we evaluate every purchase and make sure every dime that's being spent isn't "dead money."

Now my first year as a GM, I paid about $21K in taxes, claiming Married and 1 dependent on my W-4. I wanted to make sure I covered my tax debt. In the end, I returned about $6,000. Essentially, after filing, the government ended up with $15,000 of my money. Now, I have a fairly good understanding in how my government works, so the fact that I paid that much is not the disconcerting part of this story. One of my employees named Samantha was a server at the restaurant I was managing and she alone is the reason I tend to lean right on all things financial.

Samantha had five children, with 3 different men. Her "husband" at the time, Chuck, was imprisoned for drug trafficking. He ended up being paroled during this tax year. Keep that in mind as it will come into play a little later. So Samantha receives, at that point, nearly $900 a month in food stamps, Section 8 housing (which allowed her to rent a 5 bedroom home for a modest $300 per month), a free government cell phone, vouchers for free furniture and child care assistance. I couldn't make this up if I tried. Now when she filed her taxes, she could receive the EIC (earned income credit, for those of you without children) for up to 3 children. So do you know what her solution was? Sell her children. That's right! Sell her children. Well, not so much sell - loan. She agreed to allow another employee to claim her children for tax reduction purposes for the hefty sum of $1,500 a child, netting her an extra $3,000 back. Grand total on her tax liability? $0. Yup. She didn't pay a dime in taxes. She claimed "Exempt." Total refund? $12,000, with the $3K for the loaner children included. Samantha, while never declaring her full tips (I've yet to meet a server who does), determined her exact amount per year that she could earn in order to receive the maximum return. All this while routinely bringing in well over $150 per shift in tips, working 5 days a week. Samantha drove a nicer car than I did, had nicer furniture than I did and ate better than I did (often bragging "Lobster - AGAIN!"). Upon being paroled, her "husband" also qualified for government assistance and worked under the table - which, for those of you too young to understand that phrase, means tax free.

Make no mistake, I am not begrudging anyone their fair share in life. In fact, despite some glaring character flaws (and who doesn't have them?), Samantha was an amiable person. Obviously she was/is fairly intelligent to exploit the system like that. My enmity is a result of shouldering her burden and then some. And her's is NOT a unique case. I see it all the time. It's sickening and truly does make one wonder why I work 80 hours a week, trying to do the best job I can, when leeches are out there sucking the system dry.

This is just my rant on taxes and I apologize if it raises the ire of some. I am NOT a T.E.A party member, nor am I staunch Republican. In fact, I tend to lean towards the center on a lot of social issues (especially those relating to where and with whom you lay your head at night and SOME government funded programs). I realize mine is not a popular opinion. Perhaps I should continue to limit myself to wrestling.

See, what you said there is perfectly logical and rational. There's nothing wrong with thinking that and while I don't agree, I'm not going to try to rip it apart. The problem I have with most people on your side is their reasoning is completely illogical and makes no sense whatsoever and they act like it makes perfect sense. If more people argued it like you do, we might get somewhere with it but that's not going to happen for a long time.

 

[Arashi]

honestly, I think it's hard for either side to see the others point of view. If your from where I'm at where you see so many people abusing the system it's hard to feel bad for anyone. Like the single mother of four who had their husband pass away at the age of 30 and can't support her family any other way.

While at the same time, you have others who are rich abusing the system as well. Honestly, I do believe in a more aggressive sales tax on newer goods and a lower if not none existent income tax.

punish people for their excess not for hard work.

 

[Moon Knight]

If he paid what he owed and nothing more, than he did nothing wrong here and the problem is with the tax code and not Romney.

 

[Big Nick Dudley]

I don't mind that he's rich. I mind that he's a total douchebag about it.

 

[Moon Knight]

I don't mind that he's rich. I mind that he's a total douchebag about it.

If I was rich, I'd be a total douchebag too. I'll give you $5 to shine my shoes!

 

[George Steele's Barber]

Samantha had five children, with 3 different men. Her "husband" at the time, Chuck, was imprisoned for drug trafficking. He ended up being paroled during this tax year. Keep that in mind as it will come into play a little later. So Samantha receives, at that point, nearly $900 a month in food stamps, Section 8 housing (which allowed her to rent a 5 bedroom home for a modest $300 per month), a free government cell phone, vouchers for free furniture and child care assistance. I couldn't make this up if I tried. Now when she filed her taxes, she could receive the EIC (earned income credit, for those of you without children) for up to 3 children. So do you know what her solution was? Sell her children. That's right! Sell her children. Well, not so much sell - loan. She agreed to allow another employee to claim her children for tax reduction purposes for the hefty sum of $1,500 a child, netting her an extra $3,000 back. Grand total on her tax liability? $0. Yup. She didn't pay a dime in taxes. She claimed "Exempt." Total refund? $12,000, with the $3K for the loaner children included. Samantha, while never declaring her full tips (I've yet to meet a server who does), determined her exact amount per year that she could earn in order to receive the maximum return. All this while routinely bringing in well over $150 per shift in tips, working 5 days a week. Samantha drove a nicer car than I did, had nicer furniture than I did and ate better than I did (often bragging "Lobster - AGAIN!"). Upon being paroled, her "husband" also qualified for government assistance and worked under the table - which, for those of you too young to understand that phrase, means tax free.

Make no mistake, I am not begrudging anyone their fair share in life. In fact, despite some glaring character flaws (and who doesn't have them?), Samantha was an amiable person. Obviously she was/is fairly intelligent to exploit the system like that. My enmity is a result of shouldering her burden and then some. And her's is NOT a unique case. I see it all the time. It's sickening and truly does make one wonder why I work 80 hours a week, trying to do the best job I can, when leeches are out there sucking the system dry.

This is just my rant on taxes and I apologize if it raises the ire of some. I am NOT a T.E.A party member, nor am I staunch Republican. In fact, I tend to lean towards the center on a lot of social issues (especially those relating to where and with whom you lay your head at night and SOME government funded programs). I realize mine is not a popular opinion. Perhaps I should continue to limit myself to wrestling.

This seems totally fake but I'll bite.

So Samantha is abusing the system for maybe $12,000 to $20,000 a year but Mitt Romney and his family are abusing the system for millions a year. How does this make Republicans in the right? Is it because you started you Samantha biography by implying that she is kind of a ****?

 

[Shinjo]

I think he was venting he's frustration towards taxation and government in general.

 

[George Steele's Barber]

I think he was venting he's frustration towards taxation and government in general.

I don't know what median income is amongst those who visit these boards, but I'll volunteer mine to offer perspective on why I tend to lean right, despite growing up ultra liberal in Queens, NY, on most fiscal issues, especially those involving taxes.

He is explaining why he leans right and implies that only democrats are responsible for the system in place by using a simple example that is very persuasive and pulls on someone's emotions (which by the way is something I usually assume is a tactic that is exclusively used by democrats). It doesn't fly with me. Republicans are not some new political party with new ideals no matter how they pretend to be.

 

[Slyfox696]

If he paid what he owed and nothing more, than he did nothing wrong here and the problem is with the tax code and not Romney.

Yes, but if you take the position it's not right for the multi-millionaire to pay a lower percentage in taxes than a teacher, then you probably want the tax code fixed. Why would you trust Mitt Romney to fix it, when he clearly is benefiting so greatly from it, and his VP's economic plan eliminates the only type of taxes he's paid?

Romney may have done nothing illegal. But that doesn't mean it's right.

 

[Davi323]

How is Mitt Romney "abusing" the system? By doing what every single taxpayer does? Trying to maximize his legal deductions to reduce his overall tax liability? The total hypocrisy is amusing as hell. People blasting Romney for filing his taxes perfectly legally because they don't like the tax laws he is using to reduce his taxes DO THE EXACT SAME FUCKING THING ON THEIRS. Anyone who has ever claimed a deduction on their taxes and then bitches about Romney is full of shit. Why should Romney get shit for using tax laws to his advantage by people who use tax laws to their own advantage?

Half of the country pays nothing in taxes. Yet, Romney is the one who is unfairly abusing the tax system? What the hell is fair about half of the country paying no taxes? What is fair about the fact that Romney's tax liability, even as low as the 13% that he says, is still vastly higher in actual dollars than 150 million Americans pay?

Hey KB, maybe more people would have bought into your Buffett rule if Warren Buffett himself wasn't actively trying to screw the government out of millions in back taxes he refuses to pay that he legitimately owes. Birkshire Hathaway, Buffett's firm, owes millions in back taxes, Buffett refuses to pay them, and then has the nerve to claim he doesn't pay enough in taxes? What a joke! Buffett talks a mighty good talk, but when you look at his actions, they are the complete opposite. I guess with Buffett, it's do as I say, don't do as I do. He says he doesn't pay enough in taxes, yet has an army of accountant-lawyers whose sole purpose is to reduce his tax liability, to hide his money in tax free shelters, and refuses to pay the taxes his firm rightly owes.

Further, his claimed tax rate of being under those of his secretary is a complete fabrication. Most of his "income" is in capital gains and dividends, which, he pays 15% on. So, where is the fabrication? The money that he collects as capital gains and dividends has already been taxed at the Corporate level, at a rate of about 35%. Birkshire Hathaway pays 35% of their income in taxes. With the money left over, it gets sent to it's shareholders, of which Buffett is by far the largest shareholder. Those profits, which have already been taxed at a 35% rate, now called capital gains, are then taxed at 15%. That money has been taxed twice. That also means that his income from capital gains and stock dividends has effectively been taxed at about 50%, significantly more than his secretary. But, he conveniently leaves that little bit out, because it hurts his message.

I think a lot of people also confuse wealth with income. They are not the same thing. We know approximately how much Mitt Romney is worth. It's somewhere in the range of 200 million. What we do not know is exactly how much money he has actually earned as income in each year. He could be worth 200 million dollars, but his actual taxable income each year could be far, far lower. What you have and what you make are not equivalent terms.

Hypothetically, lets say I just won 500 million from the lotto. I decide to take the lump sum payment, intentionally taking the hefty tax penalty right up front. Tax rate is 35%. So, out of my original 500 million, after taxes, I have 325 million dollars left.

I think we can all agree that the 325 million dollars that remains has already been taxed, right? Okay.

Upon winning the lotto, I quit my job. I no longer earn an income. I have the 325 million dollars, in an interest bearing account, but I do not have any more money coming in, other than the interest being accrued. The top interest rates on savings accounts range between .65% and 1%. Lets assume I get the absolute best available interest rate, the 1%. So, for 325 million dollars in savings, I earn 3.25 million dollars in interest each year.

Now, once profits from interest is calculated in, I now have 328.25 million dollars. Yet, my taxable income is only the 3.25 million, because the original 325 million has already been taxed. It's not new money.

Better still, instead of an interest bearing account, maybe I put it into a non-interest bearing account. There is NO new money coming in. At all. I am completely living off of the original, already taxed 325 million dollars. Further, I didn't purchase any land with my money, I decide I want to continue renting an apartment and keep my wealth extremely quiet by living frugally, as if I made the same income I made before winning the lotto. The only difference being that I don't work anymore. I don't make any extravagant purchases at all, so there are no applicable property taxes. I don't invest any of that 325 million either. It's just sitting there in a non-interest bearing bank account, slowly being depleted as I spend it.

What's my taxable income for the rest of my life, assuming I maintain the same frugal lifestyle and don't purchase anything that is taxable on an annual basis like property?

NOTHING. ZERO. ZILCH. NADA. The United States does not have a "Wealth Tax" beyond already existing capital gains, dividends and income taxes. You aren't penalized simply for having wealth, but for what you do with it.

Thus, the difference between wealth and income. Mitt Romney is worth about 200 million. But you have no idea how much actually taxable income he earned last year. For all you know, he made a small enough amount of money last year that 13% is entirely reasonable, let alone plausible. Yet, he is a bad guy for following the existing tax laws, but you are a saint for doing the same.

It's also amusing that the left tries to lay the blame entirely on Republicans for all those tax loopholes. Both sides exist to serve their own interests. Are you really stupid enough to believe that the wealthy members in Congress with a D after their name aren't finding and using the exact same tax loopholes to reduce their taxable income as the wealthy members in Congress with an R after their name? Wise up. Members of Congress, those who write the tax laws, regardless of party affiliation, are in it for themselves. They don't give a damn about your tax rate, they only care about THEIR tax rate. If you are going to blast politicians for the indecipherable tax code we have, blame them all.