This blog originally founded by Blogger who holds a theological degree and a doctorate in Counseling Psychology. Taught Psychology for 32 years and is now Professor Emeritus. Is a board-certified psychologist and was awarded the Lifetime Achievement Award in his profession. Ministered as a chaplain, and pastored Baptist and Episcopal churches. Publications cover the integration of psychology and theology. Served in the Army, the Merchant Marines and the Peace Corps.

Sunday, August 19, 2012

Romney and his income taxes...

Romney paid millions in federal income taxes last year. If you want him to pay more, then change the tax laws to eliminate some of his deductions. Tax laws are written to encourage certain behaviors, why then attack Romney when he invests his money in the manner that the tax laws are specifically intended to encourage him to do?

Don't like what he paid in taxes? Change the law!

Had he not given nearly  millions to charity, he would have paid more income tax. Eliminate charitable deductions!

Most of his earnings were in capital gains. Tax law encourages investment by favoring capital gains income. If you don't want him, or others, to invest, raise the capital gains tax!

Some of his income was interest received on tax free bonds. Tax law gives an exemption to income taxes on certain municipal/governmental bonds. The idea is to encourage investment in these low interest bonds by
making the dividends exempt from federal income tax. If you want Romney to pay taxes on these non taxable dividends, then change the law. But, it isn't likely that people will still accept below market rates on these bonds if they are going to be taxed.

Every time I hear a complaint about the amount of taxes Romney pays, it makes me think how the "Fair Tax" would resolve the issue! 




22 comments:

Reader said...

I agree with your post, New Guy. I don't remember income taxes being such an issue, ever. I personally don't care what Obama makes or pays in taxes. I guess I was raised, "keep your business to yourself". I'm for the Fair Tax, but do you think it would ever pass? It's a great idea and would solve many issues...but I'm not sure if the left understands the word fair.

NewGuy said...

No Reader, it won't pass because there are two many people making a living off the present tax code! Congress derives a lot of it's power by controlling the present tax code. Not to mention the lobbyists, Tax accountants, tax lawyers, IRS agents, etc...

Neither Republicans or Democrats will ever (in my opinion) have a sufficient number of legislators willing to give up their main source of influence!

And people like Obama and company can divert the attention of their voters from his numerous failures. They have tried to make it an issue that Romney only paid what the current laws require him to pay.

If Dems wanted to raise capital gains taxes, or reduce exemptions, etc....they OWNED congress and the White House for 2 years - they could have done it.

Apparently he wasn't concerned with Geitner making FRAUDULENT claims on his own income taxes ...he appointed him Secretary of the Treasury in spite of his cheating on his taxes. Romney, on the other hand, hasn't even been accused of cheating - only of reducing his tax liabilities by way of charitable contributions and other legal means.

NewGuy said...

And, we can't forget that almost half of all wage earners in the US today are not paying any Federal Income taxes. Many, including significant numbers of illegal aliens, are actually receiving "refund" checks from the IRS even though they didn't actually have any taxes withheld!

I guess if I was getting "free money" from the tax system, I would vote to keep it going like it is!

Sarkazein said...

Six deductions helps too.

Johnny Rico said...

Thank God for rich people and capitalism or else we wouldn't have any tax base at all.

matt said...

I don't remember birth certificates or college papers ever being a big deal either....If Obama doesn't show those he is "obviously hiding something", but if it's Romney doesnt show his tax reords then it is okay because it is no big deal.

Don't get me wrong, the tax system is broken and I think fair tax sounds great.

I just think the double standard is funny. Romney could burn down a church and you guys would justify it somehow, but if Obama sneezes he is destroying capitalism as we know it.

Sarkazein said...

College records... tax returns... yeah, that's the same.

There is legitimate evidence that Obama AKA Sorento, registered as a foreign exchange student. College records are often required for a job, tax returns are not.
There are legitimate questions about Obama's AKA Sorento's past. Everyone knows Mitt is a rich guy.

Sarkazein said...

And Matt, there is proof Obama's AKA Sorento's birth certificate is a forgery... or have you not heard.

Sarkazein said...

Matt- If Mitt's tax returns were in question, the IRS covers this. Not CBS.

Johnny Rico said...

Flat tax. Do away with commie IRS and go to a flat tax. The liberals are deathly afraid of a flat tax because tax cheats like Turbo Tax Geitner and the other 50% who don't pay taxes will start having to pay taxes.

Flat tax is what we need in this once great country.

Johnny Rico

Jeannie Rica said...

Johnny, can we safely assume that you oppose the income cap on the payroll tax?

Anonymous said...

Why would you need an income cap if we used a flat tax?

Anonymous said...

The tax is capped because the benefits are capped. If you raise the cap on withholding, would you then provide benefits based on the increased contributions?

Johnny Rico said...

Jeannie liberal sheep,

I oppose the current tax system in which liberals such as yourself pay little or nothing while the other 50% (me) supports you. This is why I want a flat tax where everyone is taxed in a fair and equitable manner. No payroll caps or other special considerations commonly pandered by the left are needed.

And can I safely assume you are against a flat tax. If so, why? LOL.

Your ole pal

Johnny Rico

Anonymous said...

I thought that Republicans didn't think anyone should pay taxes. I would think you would happy that 50%(?) of Americans use the tax code to not pay taxes. Or maybe it's the wrong 50% that benefit that gets you in such a dither.

Anonymous said...

You thought Republicans didn't think anyone should pay taxes? Really? Are you honestly that stupid? Or are you just lying? Can you point to one incident where Republicans suggested that nobody should pay taxes?

what a maroon!

Anonymous said...

Grover Norquist.

Anonymous said...

So "maroon", who should pay taxes and how much?

Anonymous said...

50% use the tax code, just like Romney, to not pay taxes. As stated before, if you don't like the rules, then change them. Hate the game, not the player.

Anonymous said...

Is "Grover Norquist" your answer to Republicans saying nobody should pay any taxes? Or do you just like saying "Grover Norquist". It does have a nice ring to it!

I've never heard him say though that nobody should pay any taxes. Do you have a link?


Anonymous said...

I guess I am a "maroon". I assumed that republicans wished nothing more than to be unburdened with taxes. It is refreshing that you agree taxes are necessary part of a republic and nation. How should tax responsibility be portioned?

guy faulkes said...

How should tax responsibility be portioned?

Either the Fair Tax, a flat tax, or a national sales tax would be superior to the system now used.

I actually prefer a national sales tax only. It taxes people on what they use and can be adjusted as to the tax rate of necessities versus luxuries. Everyone would pay, thus inspiring the need for fiscal responsibility in government. The more affluent would pay a much greater amount than the lessor affluent.

Those that oppose this would include accountants, the IRS, and government officials wishing to buy votes with entitlements.