Mitt Romney will disclose his 2011 tax on Friday, along with a summary going back 20 years. The campaign has published the following summary:
- In 2011, the Romneys paid $1,935,708 in taxes on $13,696,951 in mostly investment income.
- The Romneys’ effective tax rate for 2011 was 14.1%.
- The Romneys donated $4,020,772 to charity in 2011, amounting to nearly 30% of their income.
- The Romneys claimed a deduction for $2.25 million of those charitable contributions.
- The Romneys’ generous charitable donations in 2011 would have significantly reduced their tax obligation for the year.
- The Romneys thus limited their deduction of charitable contributions to conform to the Governor’s statement in August, based upon the January estimate of income, that he paid at least 13% in income taxes in each of the last 10 years.
If Romney had taken all of the deductions available to him under the tax code, he would have paid closer to a 9 percent tax rate in 2011.
So he manipulated his return and deductions to make the tax rate he “paid” more palatable to us regular slobs. Here’s what Sen. Harry Reid said:
“When will the American people see the returns he filed before he was running for president?,” Mr. Reid said. “Governor Romney is showing us what he does when the public is looking. The true test of his character would be to show what he did when everyone was not looking at his taxes.”
Mr. Reid also accused Mr. Romney of “manipulating” his 2011 tax return by deducing less than he was entitled to from charitable deductions so that his effective tax rate was higher.
“That raises the question: what else in those returns has Romney manipulated?” Mr. Reid said.
NEWSFLASH: “It is possible, however, that Mr. Romney could still deduct the unclaimed amount of his charitable donations in future tax years, experts said.” (The NY Times)
Possible? I’d say that’s an all day reminder on every Romney accountant’s Outlook calendar for 7:00 AM, November 7th. Romney is not about to give up one thin dime — but he has begun to notice, what with the current climate and all, that it might not go over well if his effective tax rate for 2011 was 9%, so they tweaked it to 14.1%. For show. For now.
Also, I wish my tax rate was 14.1%, don’t you?