White House Advisor: Mitt Romney Tax Release Shows We Need to Change Tax System
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Mitt Romney’s tax releases show he earned more than $42 million over two years and paid approximately a 14% effective tax rate- the same as someone earning an annual salary of $70,000.
Romney said he pays all his taxes and not a dollar more. The White House says this proves we need to change our tax code.
“I do think it raises a general point about our tax system here,” Senior White House Advisor David Plouffe told me on “GMA.”
“The point is we need to change our tax system. We need to make sure that middle class workers are not paying more in effective tax rates than people making $ 40, $50, $100 million a year. So we have rules of the road in place right now. I’m sure Mitt Romney tried to follow them. The question is we just need change in our tax code so that everybody is doing their fair share,” he added.
Plouffe said ensuring everyone pays their “fair share” is how the administration will grow a strong economy – a theme President Obama will highlight in tonight’s State of the Union address.
“One of the things the President is going to talk about in the State of the Union tonight is something Warren Buffett famously talked about is he should not pay less in taxes than his secretary does. The president, as you know, has talked about something called the Buffett Rule. We’re going to outline that specifically tonight, what that would mean,” Plouffe told me.
We should also expect a “very specific” economic blueprint on how to achieve a durable economy from Obama tonight, Plouffe said.
“It’s make or break for the middle class. We’re doing things to ensure more people get in the middle class. We’ve had 3 million jobs created over the last 22 months. We’re digging out of a huge hole so there’s a lot more work to do,” he said.
Obama is facing reelection amid tough poll numbers. According to ABC News’ latest poll the president’s approval rating stands at 48% and more than two-thirds people believe the country is headed in the wrong direction.
But before Obama convinces voters to stay the course in November, Plouffe said they need to convince the American people and elected officials of “what’s the right thing to do this year on the economy.”
“I think if you look at what happened in ’08. We almost went into a great depression. We had an incredibly steep recession that caused all the job loss that caused a lot of pain to people. And that wasn’t an accident, it just didn’t happen. There was a reason for it,” Plouffe said. “And the question for the American people is do they want to go back to those policies, let Wall Street write its own rules, have tax and economic policy geared almost exclusively to the super wealthy, and not investing in the things we need to. Or what the president is going to lay out tonight which is a blue print for an economy that’s built to last, so that we don’t recover based on bubbles and financial instruments.”
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If Romney or Gingrich get in they will pay almost NO taxes – they want to get rid of taxes on Capital Gains entirely!!.. Yep, the Republicans are all for reforming THEIR taxes, on the backs of the middle class and working poor!!
Posted by: pksk531 | January 24, 2012, 8:26 am 8:26 am
Whilst everyone is coming clean regarding their income and taxes – I for one would be interested in seeing the Newt tell us just what he has hiding in his closet besides ex-wives. Tell us Mr. Gingrich about your lack of “ethical” behaviour that resulted in your censure, necessitated your step down as Speaker and saw you, consequently, leave the House. How can you claim such moral high ground with this secret being kept so well. The American Public now has the “need to know” as you are running for the Presidency. Tell us Mr. Gingrich, I imagine many would really like to know.
Posted by: S. Bar-Tal | January 24, 2012, 9:14 am 9:14 am
Can someone please define the middle class for me income-wise? It was once said to be between $25,000 and $100,000. Plus what is now the median income? With huge amounts of unemployed and layoffs, surely the median has come down from $44,000 where it used to be. I know lots of people who make less than $44,000 and I’m sure lots of those are college graduates. Mitt is benefiting from decades of tax cuts and reductions put into effect mostly by Republicans. Do many people remember the Reagan years? They were not particularly good for the middle class. Wages were stagnant and it was all about the yuppies (young upwardly mobile professionals). Reagan started the tax burden reduction for the rich and it has continued for 3 decades.
Posted by: Bob | January 24, 2012, 9:44 am 9:44 am
POSTED BY: PKSK531 | JANUARY 24, 2012, 8:26 AM 8:26 AM, so your upset about Romneys taxes, did not the Pres. take the same or similar deduction, so what is he’s taxrate, not more then Romneys, what about Buffet who takes every loophole and does not pay more taxes, what about Geithner and Rangle who do not even pay what they owe or GE who pays nothing. You complain about republicans start complaining about democrats.
Posted by: Lizzie | January 24, 2012, 9:47 am 9:47 am
Although i feel the need for change Romneys return should not be used as the example. He paid over three million in taxes. GE who oprates in the billions paid nothing. Buffet uses the same tax shelters as Romney and so will Obama when he gets kicked out. BOB you seem to forget as a matter of purpose that Hilary Clinton made hundreds of thousands of dollars on an invetment we still have not heard the truth about. Remeber she invested so little and got a major return that was so unbelievable they brushed it aside.
Posted by: Jim Rod | January 24, 2012, 10:20 am 10:20 am
What about the Prez’s tax return? Politics has been very profitable for him..For that matter how about Stephanopoulus show his? Bottom line: None of these folks did anything wrong other than help perpetuate the economy for the class warfare psychos that can’t balance their own checkbooks.
Posted by: Coggs | January 24, 2012, 10:33 am 10:33 am
I do not say they should not use proper deductions and do what they can. I just say that at least The Democrats WANT to raise their own taxes – remember Obama wanted the Bush tax cuts only extended for those with less than $250,000 taxable income. It is the Republicans who have lowered the taxes on the wealthiest and consistently refused to let the Bush cuts be extended unless the top 1% got theirs too. Geithner was audited and paid what he owed – it was a very confusing rule regarding IMF wages and international issues, etc. I know accountants who had trouble with it over the years. Buffet has even said he pays too little and his taxes should be raised. To me that is the difference between the Republican wealthy and the Democratic wealthy; The Dems are willing to pay more, the Reps want to pay even less!
Posted by: pksk531 | January 24, 2012, 11:08 am 11:08 am
So we want to take money from a successful investor – who is already investing in the economy – and entrust it with Obama so he can ‘invest’ by picking winners and losers like Solyndra.
That will shrink the economy not grow it.
If the Obama administration is claiming they will grow the economy by taxing money – problem isn’t taxation – it’s what you do with the money.
So far, that $500 million investment in Solyndra not only killed jobs but left tax payers holding the buck.
I would not want this person investing my money.
Posted by: Compassionate Capitalist | January 24, 2012, 11:23 am 11:23 am
About George Stephanopoulos
George Stephanopoulos is anchor of ABC’s “Good Morning America” and “This Week.” He is also the network’s chief political correspondent, reporting on political and policy stories for all ABC News broadcasts and platforms.
Little Georgie is also a democrat talking head and a former Clinton Operative
OBAMA_______VS______AMERICA
Posted by: Yep I said that | January 24, 2012, 12:49 pm 12:49 pm
I bet in school he was known as george stepalloverus
Posted by: tom thomas | January 24, 2012, 12:55 pm 12:55 pm
Romney should retire and spend his golden years cleaning up fundamentalist Mormon polygamy in mainstream Mormon communities. Now there’s a worthy cause! No one who’s seen the doc film “Banking On Heaven” (available in most libraries) would ever vote for a Mormon. Powerful Mormons and their followers raise tens of millions of dollars to crush same-sex marriage and do NOTHING about corrupt polygamists in their own backyard. Mormon communities are overrun with “lost boys” who are expelled from hundreds of polygamous Mormon sects so older men can take “child brides”, and most polygamous wives raise their children on welfare. How much time and money have Romney and his wealthy Mormon pals contributed to help the innocent women and children who are victims of fundamentalist Mormon polygamy? ZERO.
Posted by: POETICO | January 24, 2012, 2:15 pm 2:15 pm
Look I agree with the premise….we def need to change the tax system. At least a third don’t pay any taxes but still get govt services. The upper brackets take advantage of what’s given to them as well. So we shouldn’t demonize Romney or Obama for smart tax moves. Don’t forget the millions that Romeny has given to charity that allowed him to get a smaller rate. We need to scrap the current system and establish a flat income tax and or a consumption tax. That is the only possible way to address the debt is to increase revenue by a substantial amount and cut entitlements like medicar and social security which up to this point no President has had the courage to do so. it’s about leadership!
Posted by: Jack | January 29, 2012, 2:08 pm 2:08 pm