COMMENTARY | After much cajoling from Newt Gingrich, and what was probably for him a surprise defeat at Gingrich’s hands in the South Carolina primary, Mitt Romney is going to release his tax return for 2010. As a Republican primary voter I have only a passing curiosity as to what may be in Mr. Romney’s tax return. My curiosity is similar to my interest in how much wealth the richest people in America have accumulated when the annual lists are compiled. Now of course the press and Mr. Gingrich will likely have a conniption over the contents of Romney’s return. If Mitt Romney paid 17 percent or 18 percent of his income in federal income taxes that is not really any of my business. Nor is it the business of Mr. Gingrich who himself is likely in the top 1 percent of wage earners in America.
In the United States there is a distinction drawn between earned income and investment income. Presumably, the majority of Mitt Romney’s income is derived from investments. As a result, his tax rate will in all likelihood be closer to 15% as opposed to the higher rates imposed on wages. I do not have any problem with this, nor should American voters. Mitt Romney is following the tax laws of this country. What should be of more concern are those in government that cheat on their taxes. Where was the outrage in the media in response to revelations about Secretary of the Treasury Timothy Geithner’s tax troubles as well as those of Charlie Rangle? Mr. Rangle was formerly the chairman of the Ways and Means Committee in the House, which is the committee responsible for writing tax policy.
Some are also making an issue of the fact that Mitt Romney maintains offshore accounts in the Cayman Islands. I do not have any concerns about this either. If you read the articles you will find that these accounts are perfectly legal and that Romney is not alone in maintaining offshore accounts. The effort is only made to make voters think that it is illegal. This type of thing feeds perfectly into the class warfare rhetoric of the left. We certainly do not need this rhetoric in the Republican Party nor in the conservative movement.
While I am on the subject of taxes, did you ever stop to consider that we do not have taxes on wealth in America? Have you ever thought about this or asked yourself why this is the case? In brief, the reason is that liberals do not have any problems with wealth per se; their problem is with those that are trying to achieve it. This is why taxes on earned income are so high. Politicians on the left wish to prevent ordinary Americans like you and me from becoming wealthy, but they have no issues with the vast wealth of Bill Gates, Warren Buffet or the Kennedy family. I am by no means advocating a wealth tax, I am only pointing out an underlying reason for our tax policy. Think about that for a few minutes.