Mitt Romney Tax Returns Released, Paid 14.1% Tax Rate
Republican presidential nominee Mitt Romney earned $13.69 million in 2011, mostly income from his investments, and paid $1.9 million in taxes for an effective tax rate of 14.1 percent.
Mitt Romney's campaign announced Friday that he payed 14.1% in taxes in 2011.
Where did Romney's Money come from?
Romney earned $6.8 million from capital gains and another $3.6 million in interest, according to his tax return. None of his income came from wages, the primary source of income for most Americans. Capital gains are taxed at a substantially lower rate than wages and salaries for high-earners.
Romney earned about $190,000 in author and speaking fees, as well as $260,390 for sitting on the board of Marriott International, according to the tax return.
Did Romney donate to any charities in 2011?
Romney and his wife, Ann, donated $4.02 million to charity in 2011, nearly 30 percent of their income, helping to reduce their tax obligation, the campaign said.
How much do average Americans pay in taxes each year?
The overall effective federal tax rate (the ratio of federal taxes to household income) was 20.7 percent in 2006, with the highest quintile of American households paying 25.8 percent of their income in federal taxes.
Because higher-income groups earn a disproportionate share of pretax income and because tax rates rise with income, higher-income groups also pay a disproportionate share of federal taxes. In 2006, the top quintile of households earned 55.7 percent of pretax income and paid 69.3 percent of federal taxes, while the top 1 percent of households earned 18.8 percent of income and paid 28.3 percent of taxes.
Effective tax rates haven’t changed much in the last few years, but they have bounced around some over the last three decades. The top 1 percent of American households have seen the most range.