Mitt Romney: How Does He Mind His Millions?

For a few weeks his rivals and the media asked him to release his tax return. How much tax is paid by a man whose fortune is estimated to be at least $250 million? Up until now, Mitt Romney had refused to respond. He has finally given the beginning of an answer.

“It’s probably closer to the 15 percent rate than anything,” admitted the Republican candidate, “because my last 10 years, I’ve — my income comes overwhelmingly from investments made in the past, rather than ordinary income, or rather than earned annual income.” Fifteen percent tax when you are worth $250 million, whether that money was earned 10 years ago or three years, is not exactly a burden. Especially while an executive in a company earning a fraction of Mitt’s income will have to pay 39.6 percent, according to the latest tax law. Romney also admitted to having pocketed $374,327.62 for speeches at businesses and organizations. His fee for this type of performance is $41,592 per speech. Of this income, Mitt Romney pays 26 percent tax.

After having, quite unintentionally, opened the debate on private equity funds, Mitt Romney is here again on another front: the inequality and injustice of the tax law that wildly benefits the super rich. The manager of a hedge fund does not pay, for example, more than 15 percent of his revenue that can, like Steve Cohen, surpass $1 billion in a good year. Since George Bush, investment income is taxed at a considerably lower rate than salaried income.

Pressed by his Republican opponents, Romney had said that he would publish his tax return in April, i.e., when the primaries have already chosen the candidate who will face Barack Obama in November. Newt Gingrich has had a field day making fun of his decision, which implied that Republican voters do not know about this important factor. Finally, without publishing his tax bill, Romney had to confess that he was taxed as the most modest of employees.