Friday, 3 August 2012

The Way that Romney Would Pay No Taxes

When Senator Reid suggests that Candidate Romney has paid no taxes for ten years....you might want to settle back and think about this.

You have a bunch of Senators and Congressmen, who write tax code.  They've been doing it since the 1920s.  To be honest, they don't know nothing much about tax code, but they get campaign contributions and directions to add three lines into the tax code....so they do it....year after year.

So you have a guy who might have $50 million in income a year, and a dimwit might settle back and think that $25 million of that would come to IRS as a tax payment.  Well....it doesn't work that way.

First, you make donations to your church.  In this case.....Mitt donates ten percent of his income over the church, so he's only carrying $46 million in income to start with (remember, I'm only guessing what he earns per year).

Then Mitt has a dozen charity operations and foundations that he donates to....count out another $15 million going to those operations, so he's got $31 million.

Then Mitt goes to his IRA, 401K donations.  Figure 15 percent.....so we are down to $28 million.

He probably puts money into his wife's IRA/401k and that's another 15 percent.  So we get down to $25 million.

Now, he starts to funnel donations to university operations, scholarships, and various angles where it counts off your income.  Eventually, he gets down to $15 million.

Then Mitt does his green energy business with his house, runs up costs on his fake farm, and utilizes forty different tax code exemptions that are perfectly legal because Congress wrote the tax code.

In the end.....Mitt has a true income of $35k and like most other Americans who make that income....he pays no tax.

It's simple, if you have a full-time accountant doing the math, and you figure that the charity and educational folks can make better use of your money....than the US government.

So Senator Harry Reid might be right, but the thing is.....nothing is wrong in paying zero taxes out of fifty million dollars, if you obey the tax code.  Shocking, I know....that a guy with $50 million in income....pays no taxes, and it's all legal.  But, this is America.....where dimwits write tax code.  If you don't like it....go to France.

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