Mitt Romney's Tax Strategy And Other Tax Strategies From The Wealthy

Warren Buffett's secretary pays a higher tax rate than billionaire Warren Buffett. Mitt Romney paid a 13.9 percent tax rate in 2010--lower than many middle-class earners.

Are they gaming the system? Not quite. America's tax code is a wild west of benefits ripe for the taking, if, of course, you make enough money to take advantage of them and you have the right tax help to guide you through the maze.

Here are some of the most significant tax breaks the super rich take advantage of.

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Comments

[REDSTATEREFUGEE]

01:39 AM on 04/23/2012

The causal relationship is obvious: The wealthy elect Congress....Congress writes the voluminous, inscrutable tax code for their patrons....Average taxpayers have no real breaks and, furthermore, find the full tax documents incomprehensible.....The wealthy have tax accountants and tax lawyers figure it all out while they golf.....The middle class picks up the tab.

[tokyomk]

10:55 PM on 03/11/2012

So, rich people are evil? Yet, all or at least most of us aspire to be wealthy. Just look at how much money is spent on trying to win the lottery by people with little or no money.

[jimyguitar]

09:01 AM on 03/08/2012

In the fifties the income tax rate was over 90 percent on taxable income over $400,000 now it's 35 percent on taxable income over $379,150.

Whats wrong with the good old days?
http://ntu.org/tax-basics/history-of-federal-individual-1.html

[PotomacOracle]

05:39 PM on 03/11/2012

In the good old days we had a gold standard and had to tax to raise revenue to balance trade and domestic accounts. Not anylonger, we left the gold standard in Aug., 1971 and now have a sovereign, fiat currency monetary system where the government is not constrained by revenue to spend.

American taxpayer dollars don't support anything in a sovereign fiat currency monetary system. This is axiomatic, the sole issuer of our currency/money can issue as much or as little as it chooses, there is no other source. And, because money comes into being by fiat, there is no operational basis for revenue.

Federal taxes serve only to manage aggregate demand, just like interest rates.

http://​moslereconomics.com/2009/​12/10/​7-deadly-innocent-frauds/

[h jablome]

07:08 PM on 03/07/2012

you mean the tax code is an opaque byzantine disaster that favors those who have the resources to figure it out? no? you must be kidding!

and who's fault is that?

[PotomacOracle]

05:43 PM on 03/11/2012

Why it's the fault of the 99% who ignored the Aug., 1971 memo telling us that Federal taxes were no longer needed to fund government obligations. That's why the 1%ers push every legislative remedy they can pay for to keep from sending a portion of their income and profits to Uncle Sam.

[h jablome]

07:06 PM on 03/07/2012

"Their Capital Gains Are Taxed At A Low Rate"

everyone's capital gains are taxed at the same rate. but thanks for fanning the divisive ours vs. theirs flames.... very constructive.

[Etropalld]

04:07 AM on 03/08/2012

Yeah, it's not like there's a correlation between ones income and ones ability to invest.

[h jablome]

08:38 AM on 03/08/2012

who claims there isn't?

[REDSTATEREFUGEE]

01:42 AM on 04/23/2012

Yep.....Let's ignore the fact that the top 10% of American households own a whopping 83% of all tangible assets in the U.S.......marketable securities, real estate, business interests, vehicles and watercraft, personal possessions, mineral rights, etc. Seems fair to me....

[DrSkepsis]

02:47 PM on 03/07/2012

Sheesh, Buffett's secretary again. Why does the government covet her money so?

I suppose you could call it gaming, but everyone works the system to minimize their tax burden. Maybe Buffett's secretary isn't very good at it. Warren should help her out, but I suspect he doesn't really like her that much.

[Etropalld]

04:08 AM on 03/08/2012

No. Not everyone works the system. Only dishonest people do that.

[DrSkepsis]

09:48 AM on 03/08/2012

Courts have long ago established that no one is obligated to pay more taxes than he owes. Standard tax accountant and tax lawyer advice has long been, if in doubt take the deduction.

On what basis do you apply your logic? Figure your tax owed, then add 10% or so just to be sure, or you're "dishonest?" Joe Biden would applaud that logic as long as it's applied to someone else.

[rvsandy]

03:47 PM on 03/11/2012

Are you saying I and many other taxpayer are dishonest when we take every LEGAL tax breke we can? Only a fool would not and as they say "A fool and his money are soon parted"

[tokyomk]

11:00 PM on 03/11/2012

Well, to be fair, Warren has made that secretary analogy several times during interviews. The media is just too lazy to create their own original analogy.

[akrazyrunner]

02:21 PM on 03/07/2012

How about an article about how Romney turned in nearly two decades of tax returns to McCain when he was being considered for vice-president, but now has only submitted one and a projection for another. If you want to learn how to hide money, it is contained in those other year's returns

[denisedts]

02:18 PM on 03/07/2012

I say tax the rich, and then lower taxes for the working middle class and working class poor. Why should the rich pay way less in taxes then the average american pays. Then I say tax all off shore accounts and tax any and all holdings of the ubber rich. Seems fair to me don't ya think???

[AveragePlayer]

08:08 PM on 03/07/2012

The rich are already taxed. The working middle class and working class poor are taxed at lower rates, many in fact, pay no income taxes. American citizens (rich or not) are taxed on all income, worldwide, so offshore accounts are already taxed as well. If by taxing all holdings of the ubber rich you mean that we should instigate a wealth tax, I have a big problem with that.

[windy33]

08:11 AM on 03/08/2012

are you nuts or just plain stupid. how about you earn only less the 20 thou a year and do your taxes and have to pay into the feds because you didn't pay enough taxes. try living on that once before you open mouth and insert both feet.

[Corie Lemmon]

10:00 AM on 03/11/2012

But, average player, most of those rich people at the end of the year have money....how many middle class and poor families can say that? we spend all of our money because we don't have much to spend.

[dem68]

01:34 PM on 03/07/2012

Mitt where are the taxes you owe on from the offshore accounts, oh that is right you don't have to pay on those millions.

[AveragePlayer]

08:09 PM on 03/07/2012

American citizens pay taxes on income from all sources, worldwide. So Romney did pay taxes on his offshore accounts' income.

[dbdel]

01:51 PM on 03/11/2012

How do we know for sure? What hidden accounts might he have had?

[dem68]

12:32 PM on 03/07/2012

Seriously folks, we either cut the oil subsidies or raise taxes on those that can afford it. We are falling behind every other country. We need to look at defense, and cut out projects that are just pork.

[PotomacOracle]

05:46 PM on 03/11/2012

American taxpayer dollars don't support anything in a sovereign fiat currency monetary system. The Federal government (Treasury and the Federal Reserve) is not constrained by revenue to spend. This is axiomatic, the sole issuer of our currency/money can issue as much or as little as it chooses, there is no other source. And, because money comes into being by fiat, there is no operational basis for revenue.

Federal taxes serve only to manage aggregate demand, just like interest rates.

http://​moslereconomics.com/2009/​12/10/​7-deadly-innocent-frauds/

[dem68]

12:21 PM on 03/07/2012

How does is explain that with a fair tax rate under President Clinton, we had jobs, and a surplus for George to squander on his war games ?

[AveragePlayer]

08:10 PM on 03/07/2012

We had an economy that was in a cyclical boom at the time. Tax revenue increased under Bush, spending just grew quicker.

[windy33]

08:13 AM on 03/08/2012

be more specific tax increase on who. better do some fact checking first. and how come under bush he managed to tank the whole united states

[dem68]

10:41 AM on 03/07/2012

How many dinners, excursions, seminars, get written off as business ? Yet the same users of this system have huge problems with free breakfasts and lunches for the children of struggling families. Remember rush saying poor kids in the summer should just dumpster dive for food ?

[dcol]

09:49 AM on 03/07/2012

We know Romney. The secret is. Use other peoples money. Worked for him at Bain. Romney did not use any of his wealth to fund his campaign. He let his fundraising and the Mormon church fund it. Think about that voters.

[dem68]

12:20 PM on 03/07/2012

You are absolutely right, forgot about the Mormon church coffers helping him out. Got to repeal all those same sex marriages if he gets in.

[mdsman]

09:45 AM on 03/07/2012

Fair Tax initiative would end this whole discussion

[SaintFrankRK]

01:46 PM on 03/07/2012

I wish that were the case but just looking at the last incarnation of a fair tax scheme (9-9-9) where, on the surface it looks good, then the person proposing it starts adding this exception and this exemption and suddenly, were looking at the same problem we have now.

We either need to implement a straight tax with no exemptions, probably in the form of a national sales tax, and just accept that it is regressive in nature or we have to start REALLY taxing rich folks and corporations, again with no exemptions, at the actual tax rates they are supposed to pay and accept that charitable contributions may fall and some corporations may leave.

[mdsman]

02:22 PM on 03/07/2012

The fair tax is a straight national sales tax
And I don't believe the Fair Tax is regressive. they use prebates to address basic life costs. $40k for a family of four....
I am all for ending deductions if we keep the current system
But, that has to be for all, regardless of income
I would also stop payroll deduction of tax and require quarterly payment. Then people would start to realize what they pay.

As to corp taxes, those are just regressive pass thru taxes on the poor. I don't agree with them....

[PotomacOracle]

05:51 PM on 03/11/2012

Why does the government need to tax us? It's not to raise money to pay for stuff. Iit's not to increase the size of government for that purpose alone.

The policy fraud, that leaders at the highest level of this or any government since 1971 is, American taxpayer dollars don't support anything in a sovereign fiat currency monetary system. The Federal government (Treasury and the Federal Reserve) is not constrained by revenue to spend. This is axiomatic, the sole issuer of our currency/money can issue as much or as little as it chooses, there is no other source. And, because money comes into being by fiat, there is no operational basis for revenue.

Federal taxes serve only to manage aggregate demand, just like interest rates.

http://​moslereconomics.com/2009/​12/10/​7-deadly-innocent-frauds/

[muniu2008]

02:08 AM on 03/07/2012

1) Capital Gains are tax at a lower rate for two reasons a) they have already been taxed at the corporate income level, the money that is paid in wages was not subject to corporate income tax prior to being paid to employees and b) the lower tax rate accounts for lost principle, when you earn a wage there is no risk of loosing the principle, the hours put in are paid.
2) First they are paid too much, now too little cannot have it both ways
3) See number #1 stock is only worth the principle which is at risk.
4) An actual concern, all for stopping this practice.
5) I am all for people donating, I would much rather had non-profits accountable for their performance providing many of the social services. This has many advantages over the forced nature of taxes.