Romney’s 50% Tax Rate

Mitt Romney usefully points out that his tax rate is more like 50% than 15%, because the corporations from which he got his capital gains paid a corporate income tax of 35%, more or less. Good point! Anyone whose income comes from the private sector can add 35% to his actual tax rate, and should (of course, Mitt is still in a sweet spot comparatively). But that’s not all; everyone who bought the stuff these companies sold paid income tax on the money they bought it with, so there’s another 20% or so, often sales tax to boot, and their salaries were paid mostly by companies that paid corporate income tax….My God, another 35%: we’re up to 105% average tax on American incomes; no wonder the country is going down the drain.

Of course, government and non-profit worker parasites like me, and folks who work for companies that are losing money, we get an incredible deal, because the Romney multiplier doesn’t apply. And that’s the mechanism that’s driving America into socialist hell!

You read it here first, folks. See you at the barricades.

[Cross-posted at The Reality-Based Community]

Michael O’Hare

Michael O'Hare is a Professor of Public Policy at the University of California, Berkeley.