“The reason Romney pays a rate of only 14 percent on $13 million of income in 2011 — a lower rate than many in the middle class — is because he exploits a loophole that allows private equity managers to treat their income as capital gains, taxed at only 15 percent. And that loophole exists solely because private equity and hedge fund managers have so much political clout — as a result of their huge fortunes and the money they’ve donated to political candidates — that neither party will remove it.”
Hilariously, Romney explained that the lower tax rate on capital gains is fair and a well-earned reward or incentive because lower tax rates on the wealthy “put people to work.” Except the Capital Gains Elite haven’t been using the savings to create jobs in America, not for a long time — instead they’ve been hording their U.S. tax savings in other countries like Switzerland or the Cayman Islands, haven’t they? Just look at Romney’s two tax returns.
And Mitt thinks the wealthy should have even more tax breaks?