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Do Romney Tax Returns Reveal Problems in America's Tax Code?

Republican presidential candidate Mitt Romney released one year of his tax returns and an estimate for his 2011 tax returns on Tuesday morning, trying to reverse the recent bad press surrounding his income, assets, and tax rate.

The returns show that Mitt and Ann Romney, who are worth from $190 million to $250 million, earned $21.7 million in 2010 and only paid an effective 14 percent tax rate. The total amount the Romneys paid in taxes in 2010 was about $3 million.

Mitt and Ann also released their projected 2011 taxes, which have not yet been filed. The estimates reveal an income of $20.9 million, with the couple paying a tax rate of 15 percent. That income came entirely from investments, and mostly from capital gains, which are taxed at a lower rate than other types of income.

Romney's investments are spread across a series of accounts, including in the Cayman Islands, Luxembourg, and a now-closed Swiss bank account.

The returns also revealed that the Romneys gave $3 million to charity in 2010, with half of that money going to the Mormon church.

Newt Gingrich paid a tax rate of 31 percent in 2010, while President Barack Obama paid a 23 percent tax rate.

Weigh-in: What do Mitt Romney's tax returns show about America's tax code?

Bonus question: Does it matter that Romney had legal off-shore bank accounts in the Cayman Islands, Luxembourg, and Switzerland?

See the full returns here



Photo Credit: Wikimedia Commons

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