Clik here to view.
In the face of mounting pressure, Mitt Romney has released his tax returns. We take a look at some of the key findings
• In a joint federal return, Romney and his wife Ann reported an income of $21.7m in 2010 and $20.9m in 2011. On that income, they paid $3m in tax for 2010, an effective rate of 13.9%. For last year, they expect to pay $3.2m, a rate of 15.4%.
• A closer look at the returns reveals that the pair's income is derived mostly from capital gains, interest and dividends from investments. This sort of investment income is taxed at around 15% versus a maximum of 35% for wage earners. For both years, the Romneys reported no wage income.
• Capital gains made up about 51% of Romney's income for 2011, standing at $10.7m (made up of short-term capital gains of $1,090,082, and long-term gains of $9,610,097) and about 58% of his income for 2010, standing at $12.6m (comprised of short-term gains of $454,539 and long-term gains of $12,118,710.)
Short-term capital gains are made on assets held for a period of one year or less, while long-term gains are made on assets held for more than a year.
• Romney reported taxable interest of about $4m for 2011 and $3.3m for 2010.
• He also reported dividends of $3.2m for 2011 and $4.9m for 2010, of which $1.9m and $3.3m respectively were qualified dividends. Qualified dividends are ordinary dividends that meet the requirements to be taxed as net capital gains. In other words, they are subject to a much lower rate than ordinary income.
• Romney's itemised deductions included charitable contributions of close to $3m in 2010, and over $4m in 2011, mainly through tithing to the Mormon church. An appendix to his tax returns reveals that in 2010 and 2011, he donated $1.5m and $2.6m respectively to the Church of Latter-Day Saints. In 2011, he also donated $500,000 to the Tyler Foundation, which provides support to families of children with epilepsy.
• Reuters reports that Romney's holdings include an undisclosed amount based in the Cayman Islands and other overseas entities. His advisers have underscored that his holdings are in three blind trusts and that he does not make decisions about how the money is invested.
Image may be NSFW.
Clik here to view.
Image may be NSFW.
Clik here to view.
