Wednesday, August 22, 2012

Pissed Off by Political Ad

I just saw an Obama ad on TV that really pissed me off.  And it started out with the old "I am Barack Obama and I approved this ad" so you can't say he didn't know about it.  This ad was focused on Mitt Romney's tax rate.  It should be illegal to make statements like that without explaining that Romney, along with Warren Buffet, Bill Gates, and tons of other wealthy people pay low tax rates because most of their income is from long-term capital gains which is taxed at a lower rate FOR EVERYONE!

All you have to do is google: Why does Mitt Romney pay a lower tax rate than most?  Here's what comes up.

"Romney released his 2010 tax return in January after intense pressure, showing that he paid a 13.9 percent effective rate on $42.5 million in income. His tax rate, lower than that paid by most middle-class filers, was because most of his income came from investments."

Here is a quote from the Tucson Sentinel:
"Robert Farley
A new ad from the Obama campaign claims that Mitt Romney "paid only 14 percent in taxes—probably less than you." That depends. Romney paid a federal income tax rate that is higher than the income tax rate paid by 97 percent of tax filers. But if you include a combination of income taxes and payroll taxes — which make up the bulk of federal taxes for most taxpayers — the ad is accurate.

The ad, called "Stretch," is the first to feature a report from the Tax Policy Center that concluded a plan like Romney's proposal for across-the-board tax cuts, together with the goal of remaining revenue neutral, would ultimately raise taxes on people making less than $200,000 a year. The ad contrasts those findings with data from Romney's 2010 tax return.

The ad begins with a narrator stating, "You work hard, stretch every penny, but chances are you pay a higher tax rate than him: Mitt Romney made $20 million dollars in 2010, but paid only 14 percent in taxes—probably less than you."

I hope that what people come away with after watching this ad is that they need to learn more about investing their money so that one day their entire income can consist of capital gains and they, too, can pay a lower tax rate.  
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