Romney says he pays about 15 percent in income tax

[Papa_Complex]

Originally Posted by Homeslice

On the return. Not the principal.

If the offshore account earns 2%, he's earning 2% instead of the 2% - (2% * 0.38) he'd earn in the US.

Which means 2% instead of 1.2%.

If it's offshore and he isn't declaring, which is kinda the point of housing funds offshore, then his principle isn't being reduced by 38%. Whatever it earns, after that, is a tiny fraction of the real benefit.

That's the point.

If you put $1,000,000.00 in an offshore account, then it's immediately worth $380,000.00 more than a million dollars that you kept in the US.

[Homeslice]

Originally Posted by Papa_Complex

If you put $1,000,000.00 in an offshore account, then it's immediately worth $380,000.00 more than a million dollars that you kept in the US.

Not sure how you're coming up with that.

Unless his employer paid him under the table, that $1,000,000 is after-tax money. It isn't going to be taxed again. Only the return he makes on it will be taxed.

[Papa_Complex]

Originally Posted by Homeslice

Not sure how you're coming up with that.

That $1,000,000 is after-tax money. It isn't going to be taxed again. Only the return he makes on it will be taxed.

Because I'm talking about $1,000,000.00 gross income, before taxes. If your money isn't being taxed, you have more.

[EpyonXero]

Originally Posted by Homeslice

Not sure how you're coming up with that.

Unless his employer paid him under the table, that $1,000,000 is after-tax money. It isn't going to be taxed again. Only the return he makes on it will be taxed.

I doubt he has tax withheld from his speaking fees before he gets the check.

[Homeslice]

Originally Posted by Papa_Complex

Because I'm talking about $1,000,000.00 gross income, before taxes. If your money isn't being taxed, you have more.

Sure, as long as he gets that income from sources that don't automatically deduct taxes. Not sure how it was handled at Bain Capital.

[Papa_Complex]

Originally Posted by Homeslice

Sure, as long as he gets that income from sources that don't automatically deduct taxes. Not sure how it was handled at Bain Capital.

Paid from offshore income sources?

[Homeslice]

Originally Posted by Papa_Complex

Paid from offshore income sources?

Wouldn't doubt it

[Sean]

What? You don't pay income tax on your wealth, you pay it on your income. Uninvested funds don't earn income, so you're not "making" 38% on anything.

Frankly, I'd be less inclined to vote for him if he was paying 40% on his investment portfolio, because it would show a lack of understanding of the tax system.

[Papa_Complex]

Originally Posted by Sean

What? You don't pay income tax on your wealth, you pay it on your income. Uninvested funds don't earn income, so you're not "making" 38% on anything.

Frankly, I'd be less inclined to vote for him if he was paying 40% on his investment portfolio, because it would show a lack of understanding of the tax system.

And how do you get that $1,000,000.00 in the first place?

[Sean]

Originally Posted by Papa_Complex

And how do you get that $1,000,000.00 in the first place?

That he's (theoretically) already paid taxes on? Do we have that data or are you speculating with no information?