The Hypocrisy of The Tax Debate: Romney's Real Tax Rate Is 55%.

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By John Galt for Robbing America Chronicle

An example of how "Unfair" is our tax system to those that are paying taxes.

In The American Version:  
The Ones At The
Bottom Pay No Taxes

Much is being made of the announced tax rate paid by Republican candidate Mitt Romney. The liberal attack, as well as the Republican populist attack of Newt Gingrich, is hypocritical to the extreme. First, they know very well that this rate of 15% cannot be compared to earned income rates simply because Mr. Romney had no earned income. This is a rate paid on investment income. Second, they know that this investment income already paid taxes when it was earned, and that the tax rate in the corporations that earned it was 35% (by the way, the highest in the world tied with Japan). Be aware that this capital is being taxed twice. Let us repeat it - all together Mr. Gingrich -  "Mr. Romney's earned capital is being taxed two times". Yes, as in twice.

We calculate that the total taxation rate of Mr. Romney, including the original tax paid when the income was earned, plus the present taxation on investment income, plus his personal State income tax and sales tax, was a total of a little over 56%. And that is not counting myriad other hidden taxes along the route.

This kind of incomprehension about the American tax system and its manipulation for political purposes is the main obstacle standing on the way for creating economic growth. Now should be a great opportunity to shine the light of tax reform proposals, including specially those that suggest a simplified flat tax in replacement of the convoluted system we have now, and one that will allow more Americans to participate in paying taxes, regardless of how little they would pay. The real problem of the American tax system is not whether somebody like Mr. Romney paid enough taxes - even though he actually paid more than his "fair" share - but whether it is "fair" that 50% of Americans pay no taxes at all.

Now, watch President Obama suggest exactly the opposite in the State of the Union by using the concept of "fairness" backwards.

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