Tax Credits Shed Light on Romney - NYTimes.com
Jared Sperli stashed this in economics
Mr. Romney’s return shows how wealthy Americans with foreign earnings can sharply reduce their tax liability in the United States. In 2010 Mr. Romney reported $2.73 million of gross foreign income. On that amount, he paid foreign taxes of $67,173, or just 2.5 percent of his gross foreign income.
After all his deductions (including the kind of noncash charges that are central to all tax shelters, like depreciation) that multimillion-dollar sum declines to just $392,000 in taxable income. This amount appears on his federal tax return, but at his 13.9 percent effective rate, the federal tax on that income — $54,627 — was more than offset by a $129,697 tax credit for foreign taxes he paid in 2010 and earlier years.
The I.R.S. has struggled for years to cap the foreign tax credit at the amount an American would have paid in tax on that same income in the United States, so as not to subsidize higher-tax foreign governments, but with limited success. One of the basic problems with the foreign tax credit, Professor Shaviro observed, is “it’s overgenerous.”
And he knew he was running for president. I guess he was banking on the fact that he could still win irrespective of his tax returns.
more money to put into his primary run? The money has certainly come since winning the nomination.
So essentially Romney only paid 2.5 percent tax on the $3 million he made overseas.
And he thinks that's an awesome thing for America.
And half of Americans agree with him?
Half of Americans don't like the president.
So it's not that they're pro-Romney. It's just that they're anti-Obama?
Yes. For all the criticisms of gov. Romney the race is still close, no? Almost any candidate could stand-in ha
Exactly. That's how you win elections. It's a war/football game.
Indeed. It is funny to read/hear Nate Silver or Chuck Todd talk about the counties that will determine the national election. #myvotecountsless
You never know how something you say on the Internet could affect someone who votes in that county.
This is a numbers game. The more people we encourage to vote, the more likely those votes will count.