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View Full Version : INCONVENIENT TRUTH OF THE DAY 01/30/12



LWW
01-30-2012, 04:44 AM
The left was spoon fed their daily dose of hate ... (http://online.wsj.com/article/SB10001424052970203718504577178831519223426.html?m od=djemEditorialPage_h)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">When double taxation of investment income is taken into account, Mr. Romney most likely underestimated his effective tax rate on the campaign trail. The former Bain Capital CEO and Massachusetts governor caused a brouhaha last week when he estimated the tax rate on his investment income at 15%. “How unfair!” pundits exclaimed, noting that the top marginal rate for wage income is more than 30%.

The tax rate on investors is unfair, but for the opposite reason. Our tax code layers taxation of dividends and capital gains on top of a top corporate tax rate of 35%—which even President Obama acknowledges is one of the highest in the world.

This is ironically the embodiment of the “corporate personhood” legal doctrine otherwise so decried by the left. The law taxes corporations as if they were separate beings from the shareholders who own them and then levies a separate tax on shareholder payouts and gains. This double taxation brings the effective tax rate on investment income to as much as 44.75%.

In other words, after the combined top tax rates hit $100 of corporate income, $55.25 remains for the investor. And this figure doesn’t even include various state and local taxes, or the death tax. …If the traditional disclosure of tax returns is elevated into a “teachable moment” about the burdens of double taxation, all Americans could be winners. </div></div> AGAIN! (http://www.pappasontaxes.com/index.php/2012/01/25/romneys-effective-tax-rate-closer-to-45/)

Qtec
01-30-2012, 05:18 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">When double taxation of investment income is taken into account </div></div>


How PATHETIC can you get. I have already posted info which shows that many corps and businesses pay ZERO or nowhere near 35% in corp tax.

Joe the Plumber gets X amount in wages, pays his tax. He goes to the bar and orders a beer. Does he not get taxed on his earned income?


Spare me the sob stories of the ultra rich.

Q

eg8r
01-30-2012, 08:45 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">How PATHETIC can you get. I have already posted info which shows that many corps and businesses pay ZERO or nowhere near 35% in corp tax.

Joe the Plumber gets X amount in wages, pays his tax. He goes to the bar and orders a beer. Does he not get taxed on his earned income?
</div></div>How PATHETIC can you get. You posted info which shows many corps and businesses pay no where near 35%, you have also posted info that Joe Plumber pays no where near his tax rate either. Double taxation is prevalent all over this country.

eg8r

Soflasnapper
01-30-2012, 03:06 PM
It's true that Romney's effective tax rate MAY be higher than his individual rate.

However, that extra amount ranges from 0% more to 35% more, with all figures below 35% far more likely than a figure of the maximum, 35%.

Why? Because as Romney smartly uses the tax code, so too does Bain Capital, and as do the other things Romney invests in.

That's if you buy the argument in first place. It's mainly NOT true for 85% of businesses, whose taxes are instead filed as personal returns without any double taxation in this sense.

LWW
01-30-2012, 05:03 PM
They wonder when you can come back?

Soflasnapper
02-01-2012, 11:45 AM
I haven't yet been able to determine the corporate structure of Bain Capital, a private company.

However, if it is structured as the old Wall Street firms were, as a partnership, there is no corporate taxation. All the income flows to the partners and is taxed at the individual rate. The same is true if the company is structured as a limited liability company, or some variation thereof. No corporate taxation applies.

Wiki on partnership taxation (http://en.wikipedia.org/wiki/Partnership_taxation_in_the_United_States)

LWW
02-02-2012, 05:20 PM
The only problem is that it is irrelevant to the topic of Romney's taxes.