How did Mitt Romney make over 20 million and only pay 14% Income Tax ?!?!?!

[4jacks]

So everyone probably read the news headlines where Mitt Romney released two years of tax info, stating he made over 20 million in 2010, payed 14% in tax and gave 16% to charity.

How is this possible and legal? Why am I paying such a higher tax percentage rate?

I know most of his income was from investments, but I don't know the implications that has on income tax. Do you pay less income tax on income from investments?

Is there anything I can do to lower my tax bracket to 14% ?? (Legally)

This really just makes me mad at the complicated tax code.

[clydewolf]

You can view the Mitt and Ann Romney 2010 tax return here: http://c4230422.r22.cf2.rackcdn.com/1040-2010.pdf

But there is also a Mitt Romney Trust return,
an Ann Romney Trust return,
a Family Trust return,
and a Tyler Charitable Foundation return.

Have fun!

[4jacks]

You can view the Mitt and Ann Romney 2010 tax return here: http://c4230422.r22.cf2.rackcdn.com/1040-2010.pdf

But there is also a Mitt Romney Trust return,
an Ann Romney Trust return,
a Family Trust return,
and a Tyler Charitable Foundation return.

Have fun!

I was hoping you could break it down into english for me. I was hoping there was also magical advise to lower my taxes. lol

A huffington Post article did say that the maximum tax bracket on investment money is 15% where it's 35% on earned income. If that is generally accurate, then it seems to be about right with the tax return.

I understand the fact that he earned his money, and now his money is earning his yearly income. But it just seems crazy that the tax code is harder on those who are working, and easier on those who have enough to not have to work.

At any rate, I've learned that I need to get myself some Investment Income.

[clydewolf]

There may be some good ideas in this link at Kiplingers, titled
Tips from Romney and Gingrich: http://www.kiplinger.com/slideshow/t...ingrich/1.html