Mitt Romney has been reluctant to release his tax records (and didn’t when he ran for senator, governor, or for president in 2008) because he knew people would be outraged that, as a Bain venture capital guy, he pays a rate of 15%, rather than ordinary income rates. Of all the loopholes and funny business in our tax code, this is one of the worst, if not the worst.
While not releasing his tax returns, Mitt has now acknowledged that they show he pays 15%.
I am guessing that most of the country isn’t aware of this “carried interest” rule that lets him pay such a low rate, and although there have been efforts in Congress to change it, it’s never been an issue that’s lit up the switchboards. I’m hoping that publicity about Mitt’s unfair tax advantage (and everyone else in venture capital, private equity, etc.) will finally generate enough anger to get the law changed.
By the way, Chuck Schumer, the Democratic senator from New York, and self-proclaimed champion of the little guy, has been one of the main forces in Congress blocking a fix for the 15% rule. That’s because he gets tons of money from Wall Street, and he protects their unfair tax break in exchange.
I don’t want to “redistribute” Mitt’s wealth, I just want him to pay the 35% that I do.