Sunday, April 15, 2012

How Did Mitt Make So Much Money And Pay So Little in Taxes?

Robert Reich asks the above question and it is an important question. It causes us to focus on how in modern day America the rich get richer, while the rest fall behind

Reich comments:’s fair to ask how he made so much money ($21 million in 2010 alone) and paid such a low rate of taxes (only 13.9 percent)...

...the magic of private equity reveals a lot about how and why our economic system has become so distorted and lopsided – why all the gains are going to the very top while the rest of us aren’t going anywhere.

The magic of private equity isn’t really magic at all. It’s a magic trick – and it’s played on you and me.
Reich then goes off the deep end and calls for all kinds of hikes in taxes on the rich. But what should really be happening is that tax rates for all should be lowered to the level of the rich (actually even lower). It's far from occurring though, despite promises of tax cuts for the "middle class", from president after president.

If there is one thing that, unfortunately,adjusts with inflation, it is aggregate tax revenues and it is not because of higher taxes on the Mitt Romney rich. Aside from short-term dips during recessions, aggregate tax revenues go up and up.

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