Mitt(wit) Romney and the Taxman

Mitt Romney is continuing his flip-flopping ways.

Shortly after announcing his candidacy for President, Republican Mitt Romney declared that he would not release his tax returns for inspection by the electorate (not to mention his opponents and the media). Then, after facing criticism from his GOP opponents and the media, he flip-flopped and said that he would only release tax returns in April when he was the Republican nominee. Unfortunately for the multimillionaire Romney, last week he let it slip that he thinks he only pays a 15% effective tax rate. Inasmuch as the vast number of working/middle class wage earners pay a much higher tax percentage according to the income tax marginal brackets, the heat was turned up on Romney to release his tax returns immediately. Average Americans wanted to know if our tax system is so unfair that the wealthy benefit while the ordinary (not very wealthy) wage earner is penalized. Next it was revealed that Romney stashes tens of millions of dollars in offshore Cayman Island accounts and thereby deprives our nation of tax dollars while less affluent Americans bear the burden of paying their full share of taxes. Consequently, as a result of added pressure, Mitt Romney flip-flopped yet again and decided to release his 2010 and estimated 2011 tax returns on Tuesday of this week.

The returns show that Mitt and Ann Romney, who are worth from $190 million to $250 million, earned $21.7 million in 2010 and paid a 13.9 percent tax rate, lower than that of a person earning $50,000. The 2011 estimates show an income of $20.9 million, with the couple paying a tax rate of 15.4 percent, closer to the estimate that Romney gave but still substantially less than most average Americans pay. The Romneys’ income came entirely from investments, mostly from capital gains, which are taxed at a lower rate than other types of income including wages. We also learned that Romney not only stashed cash in the Cayman Islands, but also in other tax-avoiding venues such as Luxembourg and in those infamous Swiss bank accounts.

During a time when millions of average hard-working Americans are still suffering from the economic meltdown of 2008 and considering the fact that income inequality between the top 1% and the other 99% has been increasing at an astronomical rate, many believe an unfair tax system deserves much blame. Mitt Romney exemplifies the top 1%, and Americans want to see if he benefits from an unfair advantage. The Huffington Post adds that “Over the course of the 2012 primary campaign Romney has made a series of gaffes that have helped create a caricature of the candidate as an aloof plutocrat. He made a flippant $10,000 bet during a televised debate. He emphatically declared to a crowd in Iowa that “corporations are people.” In a statement that has been somewhat taken out of context, Romney declared, “I like being able to fire people who provide services to me.” When announcing that he had an estimated 15 percent tax rate, Romney glossed over the $374,327 he earned in speaking fees as “not very much.”

Did Romney’s release of his 2010 and estimated 2011 tax returns ease the nation’s suspicion of an unfair tax code which benefits the rich while punishing the less affluent? Not at all. It magnified the fact that the rich (who earn virtually all of their income by means of capital gains, dividends and private equity fees) pay a much lower percentage of those earnings in taxes than do average working/middle class Americans (who earn their income via wages) and are taxed at much higher marginal rates. Also, inasmuch as a large number of average wage earners live pay-check to pay-check and have very little excess money to invest, they are barred from taking advantage of the low capital gains and dividend rates that the wealthy enjoy. This state of affairs does not (and should not) sit well with many people.

To add insult to the tax-paying injury of average Americans, Mitt Romney’s proposed tax plan would not increase the tax burden on the super wealthy to level the playing field. Instead of raising the 15% tax on capital gains etc. which Romney and his rich friends pay, Romney’s plan would keep that tax at the present low level but reduce the capital gains tax for middle class Americans to zero. Problem is, inasmuch as most average Americans do not earn very much (if anything) by means of capital gains, they would benefit very little (if at all) from Romney’s plan while the rich would continue to have an unfair advantage. Romney’s tax plan is just smoke and mirrors.

Please remember to click on the song link below to familiarize yourselves with the tune and to have more fun singing along with today’s topical song parody.

Taxman song link:  http://www.youtube.com/watch?v=ZqK97av7I3s

TAXSCAM

 (sung to The Beatles song “Taxman”)

Let me tell you
‘Bout Mitt Romney
He just pays 2
While you pay 3

Mitt loves a tax scam
Yeah, Mitt’s the taxman

Fifteen percent
Is much too small
Be thankful that Mitt
Pays at all

Mitt loves a tax scam
Yeah, Mitt’s the taxman

He won’t pay a tax
To fix the street;
Don’t you know that Mitt
Is a tax cheat?
Now that truth’s been told
He’ll face some heat
But if Romney talks
He will be beat
(Tax Scam)

(tax break)

Mitt loves a tax scam
Yeah, Mitt’s the taxman

He hides his pay out there offshore
(Ha Ha Mr. Willard runs)
Cuz Mitt don’t want to pay some more
(Ah Ha! He’s a cheat)
Mitt loves a tax scam
Yeah, Mitt’s the taxman

How Mitt avoids tax rates too high
(Tax Scam)
Declares just pennies with his lies
(Tax Scam)
Mitt loves a tax scam
Yeah, Mitt’s the taxman
And we’re working for no one but he
(Tax Scam)

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Posted on January 24, 2012, in Mitt Romney and tagged , , , , , . Bookmark the permalink. 5 Comments.

  1. Good work, lynnrockets.

  2. Fighting Fat Cats

    Our tax system is stacked so that Wall St. players make massive profits while working people pay a much higher rate on their income, so it’s not surprising that the GOP are such avid war mongers.

    Cheney cronies such as Halliburton made out like bandits with no-bid “cost+profit” Iraq contracts while our troops were fighting for oil company shareholders (who’ll profit from any speculative price hikes due to neo-con adventurism in the Persian Gulf).

    Military contractors also have guaranteed-profit contracts because they’re too important to be left to the vagaries of free competition.

  3. (Class) War is Hell

    Washington (CNN) – House Speaker John Boehner Tuesday forcefully denounced the Democrats’ campaign theme that they are for the middle class and Republicans are for the wealthy – saying the politics the president is running on are “almost un-American.”

    http://politicalticker.blogs.cnn.com/2012/01/24/boehner-policies-president-obama-is-running-on-almost-un-american/

  4. Aside from the “flip-flopping” he just comes off as a little “too perfect” too “robotic” for most people to identify with. And this could cost him election.

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