The Dem propaganda is getting rampant. Mitt Romney pays less taxes that the working people. Does he really? All of his income are investments. Like all investment incomes it is taxed at a lower rate. Because it’s money that he saved after paying the full rate taxes on it once when he earned it. This is the second time he is paying taxes on it.
Too complex ?
Here is how it goes.
Say you are a plumber called Joe. Joe makes 100K a year. He is taxed 22% on it. He pays $22K in taxes then keeps 78K for himself. Out of the 78K he spends 58K in paying bills and saves $20K.
The 20K is his investment income. he has already paid 22% taxes on it once. It is his saved money. In my opinion he can do whatever he wants with it . Use it as toilet paper, burn it on a campfire, whatever. It’s his money. But if he puts it in an investment account he will be taxed AGAIN, albeit at a lower rate of 13% by the govt.
The investment income is money you already paid once at the regular tax rate. This is why the second time you are taxed on it at a lower rate.
Democrats mislead people into believing that people who are living off of their investment income should be taxed a SECOND time at the same rate as they paid the first time. Why? because they were conservative enough to save it and not blow it? The Democrat operatives put out a propaganda that totally obscures the reality of the situation. Unfortunately the Repubs have not done a good job explaining the facts which even a 16 yr old should know. If you are an Independent you should consider the facts and not buy into the Obama propaganda pitting one group against another. People who save against people who spend.