Mitt and taxes

Mitt Romney

Image via Wikipedia

Mitt Romney contends that he pays a higher rate of income tax if you add in what Bain pays in taxes before Mitt receives his $20 million annually. That argument applies to all taxpayers who do not work for a non-profit organization. If Mitt can argue in favor of going back one step in the income producing chain, why stop there?

Let’s construct a hypothetical example and test Mitt’s logic.

X Co pays 30% on its profits and buys products from
Y Corp which pays 25% on its profits and then is purchased and restructured by Bain
Bain pays 35% on its profits (untrue because 35% is a nominal rate, not a true rate after tax loopholes)
Mitt pays 14% plus the percentage paid by Bain and its acquired companies and their suppliers. In this example, a total of 104%. Therefore, in Mitt’s version of reality, he has paid 104% of his income in taxes. Then why is he not on food stamps and collecting unemployment insurance like so many of us?

Please see Death and taxes | Mitt and Bain | Bain pain | Money talks | Carlyle Group