Romney's Taxes: Multimillionaire's Low Rate

Mitt Romney pays a lower tax rate than most middle-class Americans.
2:24 | 01/17/12

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Transcript for Romney's Taxes: Multimillionaire's Low Rate
Your voice your vote of the headline about Mitt Romney's taxes. Rocketing around the country with just four days ago before the South Carolina primary. The multimillionaire. Romney confirmed today that a lot of middle class Americans have to pay a lot more of their income in taxes than he -- of hits. ABC's John Karl now on the. Tax tempest. It's no secret that Mitt Romney is wealthy worth about 250 million dollars but for years he has refused to say what he pays in taxes. Today we learned he pays a tax rate less than many middle income Americans at a tank -- -- probably. Closer to the 15% rate that I think that's a rate more likely to be paid by a police officer or secretary that a multi millionaire. According to the Tax Policy Center the average tax rate for those earning between fifty to 75000 dollars a year is about 15%. Those earning from 75 to 100000 dollars paid nearly 70%. The average rate for those making one million or more more than 29%. So how does Romney. Get away with paying just 50%. By income comes overwhelmingly from from investments made in the past rather than ordinary and comer. -- -- that are earned annual income and investment income is taxed at the lower capital gains rate of 50%. It's a quirk in the tax code that famously allows billionaire Warren Buffett to pay a lower rate -- his secretary. Newt Gingrich seemed taken aback when we asked about Romney's 50% revelation we just learned from Mitt Romney that he pays an effective tax rate of just 15%. We didn't. That's obviously a lot less than most middle income Americans paying wouldn't you think of that. He told them yes we'll have to wait to see exactly how much -- -- Because he says he won't release his tax returns until April after most of the primaries are over why not -- out of the voters of South Carolina. Have a right to -- him for -- the tradition has been the nominee. Releases his tax returns in taxis in April Romney did mention earning some money as a public speaker I get speakers' fees and time to time but not very much. So how much is not very much for Mitt Romney. 374000. Dollars. That's how much he made last year giving paid speeches Diane nearly -- and 50000 dollars John. 374000. Dollars while. Okay thanks so much to Jon Karl reporting and tonight.

This transcript has been automatically generated and may not be 100% accurate.

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