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If Mitt Romney were Canadian, he would pay even less tax | Personal Finance
Under increasing pressure, Republican presidential candidate Mitt Romney this week released both his 2010 tax return as well as his 2011 estimated return.
While his income numbers were staggering, placing Romney among the wealthiest income-earners in America, it was the relatively low taxes he paid and is expected to pay for 2011 that has been the subject of intense water cooler discussions.
In 2010, the presidential hopeful had reported gross income of US$21,661,344, made $2,983,974 in charitable donations and paid $3,009,766 in federal taxes, resulting in the effective 13.9% tax rate that has raised the ire of many hard-working Americans who make substantially less but pay tax at a higher effective rate.
Romney's income for 2011 is estimated to be slightly less, at US$20,901,075. Last year he made charitable gifts totaling $4,020,572 and is estimated to pay federal tax of $3,226,623 making his 2011 effective tax rate 15.4%.
The issue of Romney's wealth has dogged him throughout his campaign to be selected as the Republican presidential nomination, as Americans wondered whether his enormous wealth, estimated at more than US$250-million, could impede his ability to be president and relate to the average American. Much of his wealth can be attributed to being a founding partner of Bain Capital, a venture capital and private equity firm he started in 1984.
