He also is being placed at the center of a national debate over taxes and wealth that is likely to escalate as the campaign marches closer to the general election. The battle has been highlighted by the Occupy Wall Street movement, as well as by business magnate Warren Buffett, who has argued that, as a billionaire, he should not be taxed at a lower rate than his secretary.
Romney’s statement that he is paying about 15 percent is the most specific he has ever been about his taxes, and it comes after increased pressure to reveal more about his income before Republican voters decide on their nominee for president. He also said he planned to release his 2011 return in April. In all his years seeking office, Romney has never released his tax returns.
“What’s the effective rate I’ve been paying?’’ said Romney, in response to a question at a press conference yesterday. “It’s probably closer to the 15 percent rate than anything. Because my last 10 years, I’ve - my income comes overwhelmingly from investments made in the past, rather than ordinary income.’’ Ordinary income refers to wages, or earned income.
“I got a little bit of income from my book, but I gave that all away,’’ he added. “And then I get speaker’s fees from time to time, but not very much.’’
According to his most recent financial disclosure statement, he earned nearly $375,000 for nine speaking engagements from February 2010 to February 2011. The fees ranged from $11,475 to $68,000. Those statements also show his assets total $190 million to $250 million.
Many Americans pay taxes on the wages they earn from employment at rates from 10 percent to 35 percent, based on their income levels. But investment income - such as dividends and capital gains - is treated differently under the tax code, allowing investors to pay a 15 percent rate on their earnings.
