Romneys paid $1.94 million federal taxes for 2011 at 14.1% tax rate

(AP:WASHINGTON) Mitt Romney, one of the wealthiest candidates ever to seek the presidency, paid nearly $2 million in federal taxes on $13.7 million in income that he and his wife reported last year, his U.S. returns showed Friday. That came to an effective tax rate of 14.1 percent, lower than millions of middle-income Americans but actually more than he had to pay.

Most of Romney's income was from investment returns. That is why his rate was lower than taxpayers whose income was mostly from wages, which can be taxed at higher rates.

Romney's taxes have emerged as a key issue during the 2012 presidential race with President Barack Obama. Romney released his 2010 returns in January, but he continues to decline to disclose returns from previous years _ including those while he worked at Bain Capital, the private equity firm he co-founded.

The Obama campaign and other Democrats have pushed for fuller disclosures, reminding the Republican candidate that his father, George Romney, released a dozen years of returns when he ran for president.

Overall, the Romneys' main tax return and separate forms for blind trusts totaled over 800 pages. The blind-trust income came from hedge funds and other complex investment vehicles. The couple also reported $3.5 million in income "from sources outside the United States," citing "various countries." Their forms included filings on holdings in Switzerland, Ireland, Germany and the Cayman Islands.

The Obama campaign accused Romney anew of profiting from millions invested overseas and "loopholes and tax shelters only available to those at the top."

Apparently hoping to resolve basic questions voters might have, the Romney campaign also released a letter from his accountants saying that in the 20 years prior to 2010 the Romneys paid an average annual effective rate of 20.2 percent, never lower than 13.66 percent. On average, middle-income families _ those making from $50,000 to $75,000 a year _ pay 12.8 percent of their income in federal taxes, according to Congress' Joint Committee on Taxation. But many pay a higher rate.

The former Massachusetts governor, whose wealth is estimated at perhaps $250 million, is aggressively competing with Obama for the support of middle class voters.

Obama's own tax return for last year showed that he and his wife, Michelle, paid $162,074 in federal taxes on $789,674 in adjusted gross income, an effective tax rate of 20.5 percent. Their income plunged from $1.7 million in 2010, with declining sales of the president's books. In 2009, the Obamas reported income of $5.5 million, fueled by the best-selling books.

The Romneys' tax bill could have been lower.

For the year, they claimed a deduction for $2.25 million of their $4.021 million in charitable contributions, said Brad Malt, trustee of the candidate's blind trust.

The Romneys gave $2.6 million in cash to the Church of Jesus Christ of Latter-day Saints, the documents show. They gave just over $2 million in non-cash charitable contributions _ including donations of stock holdings in Domino's Pizza, Dunkin Donuts and Warner Chilcott _ to a family trust.

They could have claimed more in deductions, Malt said, but the couple "limited their deductions of charitable contributions to conform to the governor's statement (n August, based on the January estimate of income, that he paid at least 13 percent in income taxes in each of the last 10 years."

Romney seemed to be painted into a corner by that statement, which came in reaction to Democratic Senate Majority Leader Harry Reid's claim to have heard that the Republican had paid no taxes in some years.

Romney will surely be reminded by the Democrats that he also said in August, defending his right to pay no more taxes than he owed: "I don't pay more than are legally due, and frankly if I had paid more than are legally due I don't think I'd be qualified to become president."

He appears to be physically qualified by any measure.

The campaign released a separate report Friday _ by Romney's longtime physician, Dr. Randall Gaz of Massachusetts General Hospital _ that said he is healthy and ready to meet the rigorous demands of the presidency.

The report said Romney's heart appears healthy, and he takes a baby aspirin and medicine to treat high cholesterol to help keep it that way. He doesn't smoke or drink. And his resting heart rate is a low 40 beats per minute, in the range of well-trained athletes and reminiscent of President George W. Bush, who also had a low resting rate.

Romney is 6 feet 1 1/2 inches tall and weighs 184 pounds.

As for his taxes, the Romneys' 2011 rate was slightly above the 13.9 percent effective rate they paid for 2010 when their federal tax bill was about $3 million.

They paid federal taxes of $1,935,708 on income of $13,696.951 for last year, according to the returns filed Friday with the Internal Revenue Service. They had obtained a filing extension beyond the usual April 15 tax deadline. His campaign earlier estimated that he would pay about $3.2 million in taxes for the year, well above the $1.9 million actually paid.

Most of Romney's income is from investments held in a blind trust, and campaign aides have stressed that he makes no decisions on how his money is invested.

Most of the income for the year came from investments, which are now generally taxed at 15 percent whereas the top marginal rate for income from wages is 35 percent.

The Romneys reported $6.8 million in capital gains, such as from the sale of stocks and other securities, and $6.37 million from dividends and taxable interest.

Romney's vast fortune and his long association with Bain Capital have been much discussed this year.

Several tax law experts said Friday that his newly released tax returns would not be much help in resolving critics' questions about his sprawling finances _ whether he used aggressive tax-deferral strategies, what might be the specifics and tax advantages of his numerous offshore investments, what was the source of his massive retirement account and what are the details behind his now-closed $3 million Swiss bank account.

Analysts said details about his investments could emerge only if Romney provided far more of his tax returns _ including files dating back to his years at Bain, the private firm he left in 2001. Romney, who initially refused to disclose any tax returns, has drawn the line at providing those from the past two years.

"All the important compliance and policy questions relating to Romney's personal tax matters relate to the past," said Edward D. Kleinbard, a law professor at the University of Southern California and former chief of staff of Congress' Joint Committee on Taxation. "The issue has never been Romney's 2011 tax return _ in fact, it is a distraction to the real issues."

Only multiple returns would provide details about Romney's $100 million retirement account and how it grew, Kleinbard said. He also said earlier returns would be crucial in knowing how often he paid gift tax on family trusts.

Joseph Bankman, a Stanford University law school professor and expert on tax law, said, "It's the Bain years we'd really need to know to have a full assessment of his tax strategies." Bankman said that the 2010 and 2011 returns "only raised these questions, but they can't provide real answers."

The Romneys applied a $1.5 million tax refund to their 2012 estimated tax payments.

The couple reported $190,350 in book royalties and speaking fees. And Romney also reported $260,390 in income last year from serving on various boards of directors.

Republican vice presidential nominee Rep. Paul Ryan of Wisconsin and his wife Janna, whose returns were also released Friday by the Romney campaign, paid $64,764 in taxes on $323,416 of adjusted gross income in 2011, for an effective rate of 20 percent.

Just over half of their income came from Ryan's congressional salary. Other income flowed from rental real estate and other investments, including a trust inherited by Janna Ryan. They donated $12,991 to charity, including to the Boy Scouts of America

___

Associated Press writers Stephen Braun, Stephen Ohlemacher, Kasie Hunt and Philip Elliott contributed.

___

Follow Tom Raum on Twitter: http://www.twitter.com/tomraum . For more AP political coverage, look for the 2012 Presidential Race in AP Mobile's Big Stories section. Also follow https://twitter.com/APcampaign and AP journalists covering the campaign: https://twitter.com/AP/ap-campaign-2012 http://www.twitter.com/tomraum

STOP Republican Voter Suppression

BREAKING NEWS: A just-published New York Times article details a plan by conservative groups to prevent minorities and seniors from voting in swing states.
If we don't fight back, we’ll lose.
It’s yet more evidence that Obama needs our help to secure a second term. Like Elisabeth said yesterday, you’d think it was in the bag. But it’s not.
Help us raise $34,000 by midnight so we can help make sure voters in key states get to the polls and have their vote counted. This is the most important thing we can do to re-elect President Obama between now and Election Day.
Donate $5 or more to fund the DGA’s Voter Protection Project right now. Please don’t wait.
Thank you,
Dan Sena
Political Director
Democratic Governors Association
---------- Forwarded message ----------
From: Elisabeth Pearson
Date: Thu, Sep 20, 2012
Subject: 47 percent
Friend,
If you listen to the news reports and the late-night hosts lampooning Mitt Romney, you may think this race is over.
But if you believe that means a second term is in the bag for President Obama – think again.
The polls are still tied. Romney and his Republican gubernatorial allies have spent the last two years quietly passing laws designed to suppress Democratic votes in key swing states. They’re prepared to steal this election.
If our supporters are shut out in Pennsylvania, Florida and Ohio, we’ll lose. We need $34,000 by midnight Friday to help fully fund our Voter Protection Project. Give now, give immediately. Winning – from the top of the ticket on down – depends on it.
Donate $5 or more to the Voter Protection Project to help the DGA make sure Romney can’t steal this election.
Romney and his team haven’t seemed to sweat any of his missteps. It’s perfectly clear why: They’ve got a backup plan to stop students, women, seniors and minorities from even voting. GOP governors have put measures in place to help him win the critical states.
So it doesn’t matter what the journalists, comedians or even the polls have to say – not when we’re running out of time to undo the Republicans’ voter suppression efforts. Help us by contributing to our Voter Protection Project right now. We have to reach our $34,000 goal by midnight Friday to stop Romney’s heist. We can’t stop fighting.
Give $5 or more to the Voter Protection Project to help the DGA fight voter suppression in key states.
Thanks so much,
Elisabeth Pearson
Campaign Director
Democratic Governors Association

 

© 2012 DGA Action

Have Dinner with President Obama

You, President Obama, a table, chairs, and some grub.

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Donate $10 or whatever you can, and you'll be automatically entered for the chance to join the President for dinner:

https://donate.barackobama.com/Dinner

It'll be pretty awesome -- we'll even fly you (and a friend) out for the big night.

Thanks,

Obama for America

P.S. -- This is the last Dinner with Barack of the campaign -- don't miss out.

Vice President Biden and Dr. Jill Biden Saturday, September 22nd

Vice President Biden and Dr. Jill Biden are heading to New Hampshire -- and they'll be speaking at a grassroots event here in Merrimack on Saturday, September 22nd. They'll talk about what's at stake in this election and how we can keep building our movement here at home and all across the nation.

The event is free and open to the public. Find out how to get your ticket today.

Here are the details:

What: Grassroots event with the Bidens

When: Saturday, September 22nd
Doors open at 11:00 a.m.

Where: Merrimack Middle School
31 Madeline Bennett Lane
Merrimack, NH 03054

This is your last chance to get tickets. Sign up now to find out where to pick up your ticket to see Vice President Biden and Dr. Jill Biden:

http://nh.barackobama.com/Come-See-the-Bidens-in-Merrimack

Thanks,

Obama for America

White House: Sequestration Is Bad Policy

White House: Sequestration Is Bad Policy: The White House last week issued a 394-page report detailing the cuts to government programs if sequestration – automatic across the board cuts in both defense and non-defense expenses – were to take place. The administration warned that the cuts would be deeply destructive to national security and core government functions and are not a responsible way to reduce the deficit. Congress last August agreed to sequestration after they were unable to come up with a plan to reduce the deficit by $1.2 trillion over 10 years.

“Sequestration is a blunt and indiscriminate instrument,” the White House said. “It is not the responsible way for our nation to achieve deficit reduction.”

AFGE National President J. David Cox Sr. said sequestration will devastate government programs and services to the American people. He urges lawmakers to work toward a plan to avert sequestration and to resist calls to exploit the crisis by making cuts to Social Security, Medicare, or federal retirement. Sequestration is completely avoidable. If the Bush tax cuts for the wealthy 2% are allowed to return to the Clinton rates, almost $1 trillion would be raised, eliminating the need for sequestration altogether. If it was not for these irresponsible tax cuts, this $1 trillion hole would not even exist.
“These cuts would mean hiring freezes, furloughs and staffing reductions at the Border Patrol, Bureau of Prisons, Transportation Security Administration and other agencies that keep America safe,” NP Cox said. “The Defense Department would see delays in new equipment and facility investments, cutbacks in equipment repairs and reductions in base services for military families. The USDAs ability to inspect food processing plants and prevent foodborne illnesses would be compromised, as would the EPAs ability to protect the water we drink and the air we breathe. Critical housing programs and food assistance for low-income families would be cut.”
The following are estimates of the 2013 across-the-board cuts by agency. Exempt from sequestration are funding for the Department of Veterans Affairs, the CIA, military personnel, and most mandatory domestic spending such as Medicaid and the Children's Health Insurance Program. Click here to view the entire report.
Defense Department: $54.66 billion
Department of Veterans Affairs: Exempt
Capitol Police: $28 million
Food Safety and Inspection Service: $87 million
Forest Service: $431 million
Department of Commerce: $44 million
Bureau of the Census: $79 million
National Oceanic and Atmospheric Administration: $413 million
Department of Education: $4.1 billion
Department of Energy: $2.4 billion
Department of Health and Human Services: $15.4 billion
National Institutes of Health: $2.5 billion
Food and Drug Administration: $319 million
Department of Homeland Security: $105 million
Citizenship and Immigration Services: $205 million
Transportation Security Administration: $643 million
Federal Law Enforcement Training Center: $23 million
Immigration and Customs Enforcement: $478 million
Customs and Border Protection: $955 million
United States Coast Guard: $566 million
Federal Emergency Management Agency: $957 million
Department of Housing and Urban Development: $3.6 billion
Department of the Interior: $1.3 billion
Department of Justice: $1.2 billion
FBI: $742 million
Federal Prison System: $549 million
Department of Labor: $2.2 billion
Department of State: $2.6 billion
Department of Transportation: $2.2 billion
Department of the Treasury: $1.8 billion
Corps of Engineers: $622 million
Environmental Protection Agency: $716 million
General Services Administration: $22 million
NASA: $1.4 billion
National Science Foundation: $586 million
Office of Personnel Management: $15 million
Small Business Administration: $75 million
Social Security Administration: $467 million
District of Columbia: $35 million
Equal Employment Opportunity Commission: $30 million
Nuclear Regulatory Commission: $86 million
House Approves Bills to Avoid Defense Cuts Only: The House of Representatives has approved several bills that would protect only the Defense Department from sequestration while keeping these automatic cuts for the remainder of the government. The latest one passed by the House last week was introduced by Rep. Allen West of Florida that would replace the defense cuts with even deeper cuts to other agencies’ programs. The Senate is not expected to take up the bill and the White House is likely to veto it.

Anti-Worker Heritage Foundation’s Latest Attempt to Trash Government Employees: The corporate-funded Heritage Foundation has continued to make up lies about government workers and skew data to mislead the public. This week it released new propaganda saying government employees work three hours less per week and one month less per year than their private-sector counterparts when vacation and other paid leave is taken into account. AFGE National President J. David Cox said Heritage’s latest propaganda is another attempt to manipulate data in order to pit the American people against government workers.
“The differences Heritage cite evaporate if one adjusts for firm size and length of service – the two most important factors determining hours of work and paid time off,” NP Cox said. “From VA nurses providing around-the-clock care for our nation’s veterans to EPA workers ensuring the safety of the air we breathe and the water we drink, public sector employees serve the American public. Government should function as a model employer, attracting and retaining the best and brightest to provide the services we rely on every day. The reality is that so many private, non-union employers provide absolutely no paid time off. No sick leave, no vacation, no holidays. That is the disgrace, not the fact that public sector employers recognize that all workers need some paid time off in order to maintain a work/life balance. All workers, public and private, should be entitled to decent and fair working conditions. The Heritage Foundation’s attempt to mislead the public and denigrate the work of public employees is all part of their campaign to dismantle vital government services. We must celebrate the work performed by public and private sector employees with the understanding that work connects us all.”
Judge Strikes Down Anti-Union Law in Wisconsin: A Dane County Circuit Court judge last week struck down a law championed by Gov. Scott Walker that took away nearly all collective bargaining rights for most public workers. Judge Juan Colas ruled that the law violates the state and federal constitutions. By capping union workers’ raises but not those of non-unionized counterparts, the law infringed on workers’ rights to associate with another freely and to be treated the same way under the law.
The provisions “single out and encumber the rights of those employees who choose union membership and representation solely because of that association and therefore infringe upon the rights of free speech and association guaranteed by both the Wisconsin and United States Constitutions,” the judge wrote.
The anti-worker law, signed in March last year, prohibited collective bargaining on all issues except cost-of-living salary increases, which could not exceed the inflation rate, currently at 1.7 percent. Other issues such as pensions, health benefits, and workplace safety were off limits. Walker’s attorney said the state would appeal the ruling.
New Report Exposes ALEC’s Extensive Privatization Agenda to Help Corporations Take over Government Functions: From prison privatization to virtual public schools to Medicaid privatization, the corporate-funded American Legislative Exchange Council (ALEC) has its hands in state and local governments’ decisions to outsource public functions and services. According to a new report by In the Public Interest, “Profiting from Public Dollars: How ALEC and Its Members Promote Privatization of Government Services and Assets,” more than 300 corporations pay $7,000-$25,000 a year to be ALEC members and gain access to legislators, many of whom are ALEC members who advance corporate interests at the expense of the taxpayers. Florida’s Council on Efficient State Government Act, for example, was passed at ALEC’s recommendation to establish a council with private sector members to review the state’s privatization opportunities. Similar bills have been introduced in 13 other states. In 2011, Ohio became the first state to sell a correctional facility after an ALEC-backed bill passed to allow companies to purchase state correctional facilities. Utah in 1999 passed an ALEC-backed bill that allowed the government to contract with companies to maintain and build correctional facilities.
“ALEC is more than just an organization that convenes meetings and develops model legislation,” the report says. “It is a major player in a long and steady movement toward private control of public structures…ALEC and its corporate members have been peddling ideas and proposals to influential lawmakers that would make it easier to privatize a wide array of government functions, increase corporate influence in important public policy decisions, and grow corporations’ bottom line.”

This Week in Labor History: Sept. 17, 2011 - The Occupy Wall Street movement is launched with an anti-Wall Street march and demonstration that ended up as a two-month encampment in Manhattan’s Zuccotti Park. The even led to protests and movements around the world, with their focus on economic inequality, corruption, greed and the influence on government of monied interests. Their slogan: “We are the 99%.”
This Week’s Op-ed: Bloomberg columnist Peter Orszag argues that if Medicare is privatized, about 20 percent of doctors would likely drop Medicare patients.
“Doctors see Medicare patients, despite the relatively low payments they receive for doing so, partly because Medicare represents such a large share of the health-care market. If a substantial number of beneficiaries moved out of Medicare and into private plans, doctors would have much less incentive to see Medicare patients…The evidence suggests that, in time, this problem could well affect a large share of Medicare beneficiaries…[A]bout 20 percent of doctors would be expected to stop accepting Medicare patients.”
Orszag is vice chairman of corporate and investment banking at Citigroup and an adjunct senior fellow at the Council on Foreign Relations. He was a director of the Office of Management and Budget.
This Week’s Tweet: “We are born with nothing and we die with nothing but our student loans” ~ ‏@BorowitzReport

Hot on YouTube: The U.S. Naval Academy’s ‘Gangnam Style’

Quote of the Week
AFGE National President J. David Cox on the impact of sequestration:
“These cuts would mean hiring freezes, furloughs and staffing reductions at the Border Patrol, Bureau of Prisons, Transportation Security Administration and other agencies that keep America safe. The Defense Department would see delays in new equipment and facility investments, cutbacks in equipment repairs and reductions in base services for military families. The USDAs ability to inspect food processing plants and prevent foodborne illnesses would be compromised, as would the EPAs ability to protect the water we drink and the air we breathe. Critical housing programs and food assistance for low-income families would be cut.”

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American Federation of Government Employees, AFL-CIO 80 F Street, N.W., Washington, D.C. 20001 | Tel. (202) 737-8700 | Fax (202) 639-6492 | www.afge.org Click here to subscribe