Romney reports tax bill of $6.2m for 2010-11
Washington, January 24, 2012
Republican presidential candidate Mitt Romney released tax records on Tuesday indicating he will pay $6.2 million in taxes on a total of $42.5 million in income over the years 2010 and 2011.
Bowing to increasing political pressure to provide more detail about his vast wealth, the former private equity executive released tax returns indicating him and his wife, Ann, paid an effective tax rate of 13.9 percent in 2010. They expect to pay a 15.4 percent rate when they file their returns for 2011.
Romney's tax rate is below that of most wage-earning Americans because most of his income, as outlined in more than 500 pages of tax documents, flows from capital gains on investments.
Under the US tax code, capital gains are taxed at 15 percent, compared with a top tax rate of 35 percent for wage earners.
Romney released the tax returns after a week in which his chief rival for the Republican presidential nomination, former House of Representatives Speaker Newt Gingrich, questioned whether Romney was hiding information about his finances and cast him as being out of touch with most Americans.
Gingrich's attacks on Romney helped him upset the former Massachusetts governor in the South Carolina primary on Saturday.
Since then, Romney has vowed to be more aggressive in returning fire.
He has launched a series of attacks questioning Gingrich's character, judgment and lucrative work as a Washington consultant, and released his tax returns to try to nullify Gingrich's criticisms on that front.
The tax rates Romney reported paying could add fuel to a national debate over the fairness of the tax code, and coincides with broader concerns about income inequality symbolised by the Occupy Wall Street movement.
Romney's campaign officials stressed that his tax rate is based mostly on income from investments that are held in a blind trust. Romney's holdings include an undisclosed amount in funds based in the Grand Cayman Islands and other overseas entities.
Romney advisers stressed that the holdings in the Caymans - along with those in a Swiss bank account that was closed in 2010 after an investment adviser decided it could be politically embarrassing to Romney - were reported on tax returns and were not vehicles to avoid taxes.
They also stressed that Romney, whose holdings are in three blind trusts, makes no decisions as to how his money is invested.
Regardless, the emerging picture was of a man of great means who contributes mightily to charity. The documents showed he and his wife contributed $7 million in charity over the two years, much of it going to his Mormon church.
Romney, who’s estimated net worth is $190 million to $250 million, is among the wealthiest Americans ever to seek the presidency. – Reuters
More INTERNATIONAL NEWS Stories
- Gunmen fire on army bus in Cairo, 1 killed
- Lost jet 'may have flown for four hours'
- Gold up as Ukraine, China prompt safe-haven bids
- Search finds no sign of lost plane at suspect spot
- Missing jet may have strayed to Andaman
- Gold hits near 6-month high
- 2 killed in Manhattan building blast
- Cameron pushes for travel bans on Russian MPs
- Indian coastguards join Malaysia jet search
- Confusion as search for lost jet spreads
- Military denies lost plane's flight to Malacca
- Investors monitoring Pimco after internal strife
- N Korea tanker ‘leaves Libya rebel port carrying oil’
- Malaysia plane incident not terror related: Interpol
- Crimea closes air space to commercial flights
- Missing Malaysian plane last seen At Malacca Strait
- Stolen passport holder on missing plane is Iranian
- China deploys 10 satellites to search for Malaysia jet
- Libya says halts tanker outside port; rebels deny it
- Libya orders military force to 'liberate' ports
- Big bananas: Chiquita, Fyffes merge
- Radar sweeps, dozens of aircraft, but no sign of plane
- N Korea tanker loads oil at Libya rebel port
- Gold drops as US growth optimism weighs
- Merkel raps Putin; Russia tightens grip on Crimea
- World 'at sea' over missing Malaysian jetliner
- Passports requiring probe were on Malaysia flight
- 40 killed in Yemen as Houthi fighters near capital
- Vietnam finds object in sea; search on
- $5bn poll spend to boost India economy