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Bill Gunderson

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Romney, Taxes, and Tithing

Posted: 01/26/2012 11:33 am

Much has been made lately of Mitt Romney's tax returns and his effective tax rate. Is it fair that Mitt pays an effective tax rate of 13.9%, while Warren Buffett's secretary pays double that rate (we still have not seen her return, however)?

We currently have a capital gains tax here in America. Many countries like Argentina, Egypt, Hong Kong, India, Iran, Malaysia, Netherlands, New Zealand, Russia, Singapore, Switzerland, Thailand, Turkey, etc. do not have any capital gains tax. Our top tax rate is 15% on capital gains here at home.

By all accounts, Mitt Romney has paid the legal taxes due on the money he has earned. He has not broken any laws. He has not been dishonest. He has paid the taxes due on the money he has earned under the current tax code. It's hard to question his honesty and integrity.

Now, if you want to change the tax code, then that is a whole other debate. It is not fair to resent Mr. Romney for paying what was legal and honest under the current code. I have many clients that have invested their money into municipal bonds, so that they can derive income from their investments. They pay NO federal or state taxes on this income. Many of them have an effective tax rate of zero. Is this fair? Is investing in sewers and roads somehow nobler than investing in businesses? Why should we give them such a tax advantage?

Should we resent Mr. Romney for how much money he makes? I don't resent how much Albert Pujols makes when he steps into the batter's box against my favorite team. I don't resent Tim Lincicum's take home pay, when he takes the mound against my San Diego Padres. Nor do I resent how much Johnny Depp gets paid for one of his movies. These folks have become the best at what they do, and there should be no limit as to how much they can make.

How about Mitt Romney's charitable contributions? Should we resent the fact that he pays a ten-percent tithe to his church? Last time I looked Malachi was the last chapter in the Old Testament. It seems to me that Jews, Christians, and Mormons alike, recognize the Old Testament as a canon of scripture.

Was it not Malachi who said, "Bring ye all the tithes into the storehouse...and prove me now herewith...if I will not open you the windows of heaven, and pour you out a blessing, that there shall not be room enough to receive it." I have found this to be a true principle in my own life. I think that you have seen this principle manifest itself in the life of Mitt Romney.

Furthermore, I submit to you that Mr. Romney counts his real blessings in life as the great family that stands behind him at many of his appearances, and not the monetary treasures that he will have to leave behind some day.

What about the organization that Mitt gives most of his charitable contributions to, the LDS church? Do its leaders live lavish lifestyles and use the money recklessly. The LDS church has no paid ministry, everyone is a volunteer. The church maintains warehouses full of basic needs and is ready at a moment's notice to deliver aid to those in need all over the world. In addition to this, the church has no debt.

Maybe our government can learn something from Mitt Romney and the Mormons.

 

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HUFFPOST SUPER USER
Troy Bowles
http://cosmophilosophy.com
01:16 PM on 02/01/2012
"Maybe our government can learn something from Mitt Romney and the Mormons."
_______________________________
The Mormons? You mean yourself, don't you? You're not an unprejudiced source.

No thanks. We already have enough problems with leaders who refuse to disclose what they're up to.
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HUFFPOST SUPER USER
Troy Bowles
http://cosmophilosophy.com
01:13 AM on 02/01/2012
"The LDS church has no paid ministry, everyone is a volunteer."
_______________________________
The prophet, apostles and general authorities receive compensation. Please don't twist the truth about your church. We don't have to be members to know what's going on. As a non-member, I read what I please and make up my own mind accordingly. When I have a question about Mormonism, the last person I'm looking for is an indoctrinated member. I already know that story.
07:40 PM on 02/03/2012
What source have you found that says that the prophet, apostles, and general authorities receive compensation? I'm very curious about this.
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Troy Bowles
http://cosmophilosophy.com
03:12 AM on 02/04/2012
Let your fingers do the walking. Ask the great god of Google if these men receive compensation. Read for yourself and check your sources. Above all, be honest with yourself at every point and don't let stuff your questions away if they make you uncomfortable. We already know they get a stipend of some kind. How much? Don't ask them for an answer. Those expenditures are secret.

If you're honestly curious, do some honest research and check out the critics as well as the supporters. It's starting to get a little silly when you demand sources as proof from me while you're perfectly capable of your own research. All I did was leak the information in a tiny way. The tsunami has already passed through.
10:05 PM on 02/12/2012
Read Daymon Smith's "The Book of Mammon." He was an employee in the Church Office Building. He lays it all out very well.

Try also here:

http://mormoncurtain.com/topic_generalauthorities.html

http://mormonchurch.com/53/does-the-church-have-a-paid-clergy

http://www.mrm.org/paid-ministry

http://jenny-evans.suite101.com/lds-general-authorities-and-living-allowances-a284142
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HUFFPOST SUPER USER
Troy Bowles
http://cosmophilosophy.com
01:06 AM on 02/01/2012
"It is not fair to resent Mr. Romney for paying what was legal and honest under the current code."
_____________________________
Perhaps not, but I can withhold my vote and I'll feel no resentment toward Romney at all. It's Romney's resentment that keeps making its appearance.
03:57 PM on 01/30/2012
Why I have a problem with what he paid in taxes. Before releasing his tax information, and likely since, he has demonized those who make drastically less than him who pay little or no taxes, yet these people are paying what the law requires of them. Yet he is fine with how little he pays, because he pays what the law requires of him. I'm just tried of the GOP being fine with anything as long as your a corporation or wealthy because that's capitalism at it's finest, but if the little guy does it then it's wrong and class warfare.
07:05 PM on 01/28/2012
"The LDS church? Do its leaders live lavish lifestyles and use the money recklessly. The LDS church has no paid ministry, everyone is a volunteer. The church maintains warehouses full of basic needs and is ready at a moment's notice to deliver aid to those in need all over the world. In addition to this, the church has no debt."

Ummm....Not quite.

1. General Authorities of the LDS church ARE paid. And rather generously.

2. The church does maintain storehouses. But its contributions to humanitarian relief are pathetic. By its own figures it donated less than $4 per member per year. Walmart gives more.

3. The LDS church refuses to open its own finances to even its own members.
02:19 AM on 01/29/2012
General Authorities of the LDS church are not paid to be General Authorities. They have some needs paid for (hotel when they have to travel somewhere for church duties, etc), but there is no payment for their service; furthermore, if the LDS church doesn't open it's finances, where do you get your figures?
10:02 AM on 01/29/2012
Yeah, allow me to be one more person saying Taynya's comments are silly gainsaying. The church has no paid clergy. There are sites that show each of their homes, and you can see rather readily they are living off their retirement from whatever average jobs they had before they became church leaders.

And if Tanya actually has numbers saying the church donated $4 per member per year to disasters, remember that's $100M. Really, if you've ever been to any kind of disaster, you know that the LDS, Catholic, and Islamic humanitarian arms are as big as the Red Cross there, and are generally a lot more willing to drive into the fire (while the government waits a week for the levies to stabilize before sending aid.) Still, as both StephiJ and Tanya said, Tanya would have no such records.
01:58 PM on 01/29/2012
Sorry to break the news to you, but you have the same (wrong) impression many LDS members do. In fact, General Authorities receive a "living allowance" based on their previous salary before they were called.

Daymon Smith (who worked in the Church Office Building) wrote a detailed book on how church finances work: "The Book of Mammon."

Here are other on-line sources:

http://www.salamandersociety.com/foyer/salary/

http://www.mormoncurtain.com/topic_generalauthorities.html

http://mormonthink.com/tithing.htm#salary

http://www.utlm.org/onlineresources/paidclergy.htm

We came across all this as my spouse and I were seriously investigating the Mormon church. Our good Mormon friends (who introduced us to the missionaries) were surprised too.

And help me, "mrcolj" with the "gainsaying" comment. What am I to gain. I am posting facts I learned. How is that "gainsaying"?

As for the LDS church's sad spending on humanitarian aid, I stand by my comment.

In Jan. 2006, from the Church PR department, (Deseret News Publishing Company): Edgley said that since 1984, the LDS Church has donated nearly $750 million in cash and goods to people in need in more than 150 countries. That averages to 37.5 million per year or about $3-$4 per Mormon member went to the poor. Do the math.

Mind you the LDS church is spending $4 billion on a shopping mall. I wonder what another $4 billion would do to help the poor.
06:09 PM on 01/29/2012
I saw that $4 per member stat somewhere else too. What people forget is that like any other church, the LDS church has many members who are completely inactive and never attend. Not only that, but a size-able portion of the church are children and teenagers, most of whom do not have jobs. Besides, I think the $4 figure came just from emergency relief... not the day to day stuff the church does.

"$4 per member" is an over simplification of the humanitarian aid the church gives out on a regular basis.
10:41 PM on 01/29/2012
Oh, I know you are right about the inactive population. In fact, if my reading is right, less than half of Mormons are active. And interestingly, the Mormon church counts as "members" in their 14 million membership figure anyone who ever joined their faith. Other churches count those who attend. Arguably, the Mormon church is about half its stated size.

And the fact is, if the Mormon church opened its financial books to even its members, there might be a better site picture of where their money goes. But they refuse to do so. One wonders why (but not really).
HUFFPOST PUNDIT
SonicUltimate
05:08 PM on 01/26/2012
"It is not fair to resent Mr. Romney for paying what was legal and honest under the current code."

Except that Mitt was among those lobbying against changing that tax code (a GOP led initiative) several years ago.  I would say it's pretty fair to resent someone making boatloads of cash when they tend to use that cash to lobby Washington so they can make even more cash while the rest of us have our relative burdens increased.
01:19 AM on 01/28/2012
Yeah, I hope that no politicians will ever try to pass a bill that will affect them in any way, ever.
HUFFPOST PUNDIT
SonicUltimate
12:32 PM on 01/28/2012
Unfamiliar with the term "public servant" are we? Politicians are generally tasked with creating policy that is for the general welfare, which may on occasion run against personal preferance/benefit.
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Jeff Wolverton
(not my real name)
04:37 PM on 01/26/2012
Exactly! It's like this-- let's you and me play a game. (Hold on, first I gotta talk with those the guys who are coming up with the rules... there, done!) Ok, now let's play! HEY, LOOK- I WON! Man, am I good at this game or what--

What, now you're mad that I won? Well, you certainly can't complain, I played exactly by the rules, just look here at the rulebook, it's phrased just right-- huh? You're complaining that just because I HELPED WRITE the rules, that somehow I may have rigged the game in my favor? (Like when I lobbied to get that 25% rate changed to a 15% rate?) Ridiculous! You're just jealous I won!

Point is: we don't get why poor people complain about rich people's tax rates-- poor people have the exact same opportunity to hire lobbyists, promise millions to campaigns, etc., that rich people do! Don't like it, poor people? Then just hire lobbyists like we do! Stop being stingy with your millions, poor folk! (After all -- the money you pay to lobbyists, or "donate" to churches that apply political pressure in your favor, will come back to you eventually, believe me.)
marcdostl
Diogenesian & Classical Liberal
02:56 PM on 01/26/2012
Romney paid more money to charity, and a greater percentage of Gross to charity, than Obama and Biden Combined...Democrats are hypocrites and scammers...Conservatives have always given more to Charities than Liberals.
HUFFPOST SUPER USER
ez14livin
05:10 PM on 01/26/2012
charity or his church?

and if the mormon rule is to tithe 10% and that is all romney has provided to charity, then great, he is a good mormon; but that does not make him a charitable person

maybe he just doesn't want to be excommunicated....

let's see the rest of his tax returns
marcdostl
Diogenesian & Classical Liberal
06:32 PM on 01/26/2012
Other contributions were still more than Obama and Biden...They are just good liberals.They want OPM, including yours...As a liberal, Do you think he really cares about excommunication? He has more money than God.
09:38 PM on 01/26/2012
Ahhh did you not see that he paid over 7 million to charitable contributions? 4 million to the Mormon church and the other spread through out. So maybe you should actually look at his tax return
04:38 AM on 01/29/2012
Actually, Romney only paid slightly more than Obama. His total, including Tithing and other "obligatory" donations (for a member of the Church of Jesus Christ of Latter Day Saints, such as Fast Offerings, which is money you donate for the food you don't eat while fasting, a common tradition) as well as his other charitable works came to a little over 14%. Obama's came to just under 14%, most of which also went to tithes and offerings at church. They are both good Christians who have solid faithful foundations. Romney's is a much, much larger number, because he is much, much wealthier in the first place and the bulk of his income stems from capital gains, while Obama is Novus Homo and the bulk of his income stems from books he himself wrote.

Biden, on the other hand, donates practically nothing. So you have a point there. But I completely disagree that this is remotely close to a Liberal/Conservative divide.
marcdostl
Diogenesian & Classical Liberal
02:51 PM on 01/26/2012
Come on, The Mormon Church has NO Debt? They have NO paid employees? This can't be true.
03:24 PM on 01/26/2012
It's true. I teach 10 and 11-year-olds on Sundays and I don't make a penny off of it. Our bishops get nothing, our presidents get nothing, our Prophet gets nothing. The Church runs off of members' tithing money. Tithing is optional, but encouraged. We, the members of The Church of Jesus Christ of Latter-day Saints, fund everything in the Church -- the beautiful Temples you see come from our tithing, our three universities run off of tithing, our chapels and supplies come from tithing -- you get the picture. None of our tithing comes back to us in salary or anything like that.
02:03 PM on 01/27/2012
Tithing is NOT optional if you want a temple recommend and my brother gets paid quite well for working at the Genealogical library, although they made him shave off his beard for the job.

Almost all of the general authorities are wealthy white men, so it's obvious God loves wealthy white men....:)
10:28 PM on 01/29/2012
Sorry to break the news to you, but you have the same (wrong) impression many LDS members do. In fact, General Authoritie­s receive a generous "living allowance" based on their previous salary before they were called.

Daymon Smith (who worked in the Church Office Building) wrote a detailed book on how church finances work: "The Book of Mammon."

Here are other on-line sources:

http://www­.salamande­rsociety.c­om/foyer/s­alary/

http://www­.mormoncur­tain.com/t­opic_gener­alauthorit­ies.html

http://mor­monthink.c­om/tithing­.htm#salar­y

http://www­.utlm.org/­onlinereso­urces/paid­clergy.htm

We came across all this as my spouse and I were seriously investigat­ing the Mormon church. Our good Mormon friends (who introduced us to the missionari­es) were surprised too.

As for the LDS church's sad spending on humanitari­an aid, in Jan. 2006, from the Church PR department­, (Deseret News Publishing Company): Mr. Edgley said that since 1984, the LDS Church has donated nearly $750 million in cash and goods to people in need in more than 150 countries. That averages to 37.5 million per year or about $3-$4 per Mormon member went to the poor. Do the math.

Mind you the LDS church is spending $4 billion on a shopping mall. I wonder what another $4 billion would do to help the poor.
04:24 PM on 01/26/2012
BUT IT IS TRUE! They are a true church living up to it's doctrine and taking care of the parishoners and not the higher ups in the church. I am not a Morman but I have lived in SLC and seen what they do for their community. They do have their problems, just like other religions, but do seem to live to a higher standard.
marcdostl
Diogenesian & Classical Liberal
04:42 PM on 01/26/2012
Mormons must be Amish like, except for Mitt Romney...Strange.
07:44 PM on 01/31/2012
Ruggerkurt, you are gulping the kool-aid. Basing your conclusion on community service you saw is akin to Sarah Palin's comment that she qualifies in international diplomacy because she can see Russia from her living room.

Mormons make sure their humanitarian efforts generate praise for themselves by giving volunteers yellow LDS-labeled shirts. They stop short of saying "...and I am a MORMON!" Here's the truth: A letter was recently sent from Salt Lake to all bishops instructing them to tell members facing foreclosure or loss of employment not to expect any help from the church-- turn to family and each other.

Some members may be eligible for food assistance if they are deemed "worthy." Local discretion is used and let me tell you what this feels like. One weekend I received a phone call from one of my teenage children from a truck stop in Arizona. He had been accidentally stranded with no money and no way to get home. I was an active Mormon at the time so I called the closest ward (parish) and asked for help. The bishop denied my request and told me nothing could be done until Monday because my worthiness and activity level could only be verified on a weekday. I was horrified that my own church cared so little for the welfare of ANY child stranded without money/food.

A higher standard? We exmormons call Mormon charity claims corporate "fruits of the spirit"--a bureaucratic counterfeit of Christian compassion.
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HUFFPOST SUPER USER
scorpions5
Facts do not cease to exist when ignored.
02:49 PM on 01/26/2012
Great article. I agree. Mitt is squeaky clean so far. He paid his taxes, he pays them now, he is honest about it. I don't understand what all the uproar is about. Are people mad because he hasn't done anything illegal? Are they mad because they can't find anything wrong with him? So must they pick on this? What about Steve Jobs, who I don't think took a salary,but lived off of his capital gains. Or Bill Gates. And what about all the sports figures, celebrities, musicians,? What about Oprah, who is incredibly wealthy? Why aren't people picking on Al Gore, or Sen.Kerry ? Why are we so insulted by Mitt because he worked and invested wisely? He is the icon of the American dream.
02:25 PM on 01/26/2012
Hong Kong and Singapore have unique economies, but they are not countries. And Warren Buffet's secretary is not running for office.
02:58 PM on 01/27/2012
Singapore's not a country?
03:25 PM on 01/27/2012
In my geographically challenged brain, when I read Singapore, I thought Shanghai. Apologies to all the people of Singapore who were offended by my post. This Romney article was not relevant enough to warrant a comment. I should have remained silent.
10:17 AM on 01/29/2012
But you've gotta' admit that Warren Buffet's secretary is acting in a political fashion and stepping onto the political stage. Where it'll bite her in the butt is when she refuses to release her tax returns. If she can wait it out she'll avoid the backlash that will inevitably come when people realize her AGI is by definition between $250K and $500K (and therefore her gross is probably $1M.) She surely pays much less in taxes than anyone who's rallying behind her because of her Title.
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HUFFPOST SUPER USER
dzymzlzy
01:31 PM on 01/26/2012
I do resent those who pay such a small percentage of their earnings in taxes because I know that they pay lobbyists and buy members of Congress in order to have such a low rate. Someone like me has no possible way to influence the government the way the 1% do.

I do resent sports figures who demand such high pay (and those who allow such pay) that I can no longer afford to take my family to a single game.

And the church may do "good works" but they also bankroll out of state elections that take basic civil rights from tax paying citizens. In fact Romney gave a huge chunk of money to the church right when they were waging a war of hatred and intolerance against my fellow Californians.
07:49 PM on 01/27/2012
Oh you poor misguided person. The Mormon church donated the entire sume of $000000000.00 to the war on families that you call hatred and intolerance. The members of the church that wanted to did and maybe one of them was Mitt so what. Besides you are more of the hatred and intolerant person you claim others to be.
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dzymzlzy
09:42 AM on 01/31/2012
It's a simple Google search. They donated $189,903.58 http://newsroom.lds.org/article/church-clarifies-proposition-8-filing-corrects-erroneous-news-reports
04:27 PM on 01/30/2012
Find something else to do that resent. It won't make you happy.

I'm not rich but I'm for low taxes because I believe don't believe I am entitled to someone else's money.

As an economist, I believe Bill Gates investing $10 will benefit the country more than giving it to the government. Clearly, we need some tax revenue but my feelings on taxes are based 100% on balance between investment and taxes and 0% on a dreamed up notion of fairness.

If you take economics 101, the first thing you learn is that trade is not a zero sum game. Both people can benefit. Just because Bill Gates made $60B doesn't mean he did it at the expense of someone else. Look at the Robinson and Friday palm leaves and coconut analysis. Robinson can produce more coconuts and palm leaves than Friday but both can still benefit from trading.

If you don't understand this, you will always feel victimized.
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dzymzlzy
09:45 AM on 01/31/2012
You mean Bill Gates the founder of Microsoft? The one who just called for raising taxes on the rich? You are being victimized too. At least I don't vote against my own best interests. http://www.huffingtonpost.com/2012/01/25/bill-gates-taxes_n_1231920.html