Mitt Romney’s Tax Returns
The problem with Mitt Romney’s tax returns isn’t his rate, it’s that while many of us flat-lined in regards to our investments, Romney was able to make a profit of 40 million dollars. Last year, my 401k did not go up. It stayed very close to the same. So, my investments made me nothing. According to CNN, “the reason Romney’s rate is so low — despite having one of the highest incomes in the country — is because his income was derived almost entirely from capital gains and dividends from his extensive portfolio of investments.”
If the last decade was known as a lost decade for investors, how could someone make so much money? In all of the discussions about his tax rate, I have not heard anyone who is surprised by his capital gains. Although the fact that his tax rate is lower than mind, the fact that he was able to prosper from investments in a time where no one was making money on investments should be examined. What did he invest in? Are these all dividends? Where did these capital gains come from? The question shouldn’t be about the tax rates. We should understand that these facts are legal and all of his money management is what someone with type of money can do. But we should be looking at what he has invested in, if for nothing else – to help pension funds, state governments, and mutual funds make similar smart investments.