During an interview with Spanish language network UniVision, Mitt Romney was pressed on whether it was fair for him to pay 13 percent of his income in taxes — as he did in 2010, according to his recently released tax returns — when many middle class families pay twice that percentage. Romney proceeded to claim that his actual rate is closer to 45 or 50 percent. Here's how he spun it:
You can pause at 1:15 for the purposes of this blog
Follows is a verbatim transcript of the Romney and UniVision exchange. Shitepoke inserts his dialog as if he had been participating in the interview:
UniVision: You just released your tax returns. In 2010 you only paid 13 percent of taxes while most Americans paid much more than that. Is that fair?
Romney: Well, actually, I released two years of taxes and I think the average is almost 15 percent. And then also, on top of that, I gave another more 15 percent to charity. When you add it together with all of the taxes and the charity, particularly in the last year, I think it reaches almost 40 percent that I gave back to the community.
Shitepoke: Charity? Whoa Governor. What the hell are you talking about? I'm sure you're familiar with Schedule B on your 1040 Return. On that form, your charitable deductions are deducted from your adjusted gross income before your tax rate is calculated. When you claim a charitable deduction, you disavow that amount of income as being subject to income tax - on the premises that it qualifies as exempt income according to the tax code. You cannot equate charitable contributions with income tax.
And what this "community" you're talking about? Let's put a lot of clarity in this: you're talking about the Mormon Church - in fact $4 million in the last four years alone - $4 million in income for which you have evaded taxes by virtue of the very "charitable" (shall we say) tax code which allows any organization with a 5013C charter to charge its operating costs directly to American taxpayers.
Sorry, but when you say "give this back to the community" you really mean funnel tax exempt income into the coffers of a bunch of thugs in Salt Lake City who - well - spent $30 million to defeat California Proposition 8 - denying marriage equality to gay Americans. Uhh, some community you have there.
Romney: One of the reasons why we have a lower tax rate on capital gains is because capital gains are also being taxed at the corporate level. So as businesses earn profits, that's taxed at 35 percent, then as they distribute those profits as dividends, that's taxed at 15 percent more. So, all total, the tax rate is really closer to 45 or 50 percent.
Shitepoke: Uhh, Governor. You've got me all discombobulated here. Let's draw the distinction between equity and dividends when it comes to tax liability. Capital gains is the measurement of your gain (or loss) in shareholder equity. It has noting to do with corporate taxation. Shareholder equity is not subject to taxation - either on the corporate balance sheet or on your own tax return. Only the gain or loss in equity is subject to taxation when you sell or trade a corporate equity position (stock). That the current income tax on capital gains is 15% is purely a value judgment on behalf of the Ways and Means Committee.
Dividends are corporate profits distributed to shareholders. Dividends are taxed as ordinary income - to you and all taxpayers. True, corporate dividends are declared after corporate profits are taxed, but so what. When you mix capital gains and dividends you are mixing apples and oranges. But you knew that, didn't you
UniVision: But is it fair what you pay, 13 percent, while most pay much more than that?
Romney: Well, again, I go back to the point that the funds are being taxes twice at two different levels.
Shitepoke: Mitt, you are as full of shit as a Christmas Turkey. Your income is 99% capital gains - or as the IRS calls it unearned income. From that you subtracted - really conned - the taxpayers out of millions in direct subsidy to the Mormon Church. So your effective tax rate was actually LESS than the 13% you paid - not MORE. But your lucky in one respect, no main stream media reporter will dare challenge you on your phony math.
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