This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/world-us-canada-16696347
The article has changed 10 times. There is an RSS feed of changes available.
Version 6 | Version 7 |
---|---|
US Republican hopeful Mitt Romney pays 13.9% tax | |
(40 minutes later) | |
US Republican presidential candidate Mitt Romney expects to pay about $6.2m (£4m) in taxes on income of $42.5m in the last two years. | US Republican presidential candidate Mitt Romney expects to pay about $6.2m (£4m) in taxes on income of $42.5m in the last two years. |
That makes for a tax rate of 13.9% in 2010 and an expected rate of 15.4% in 2011, his campaign said. | |
His income places him among the top earners in the US, and his tax history has become a campaign issue. | |
Mr Romney was an early favourite in state primaries but lost the latest, in South Carolina, to rival Newt Gingrich. | Mr Romney was an early favourite in state primaries but lost the latest, in South Carolina, to rival Newt Gingrich. |
Mr Gingrich released his tax figures on Saturday, saying he paid nearly $1m last year, a href="http://www.documentcloud.org/documents/284912-gingrichincometaxreturn.html " >rate of about 31%. | |
On the same day he won a striking victory in the South Carolina vote, beating Mr Romney with more 40% of the vote. | On the same day he won a striking victory in the South Carolina vote, beating Mr Romney with more 40% of the vote. |
President Barack Obama is expected to highlight economic inequality in his annual State of the Union address later on Tuesday. | |
'Not a dollar more' | 'Not a dollar more' |
Mr Romney is a multi-millionaire businessman and former Massachusetts governor with three homes. | |
He lives mainly on income derived from his investments, for which only 15% tax is payable. Earned income is taxed at up to 35%. | |
On Monday, before he released his income and tax figures, Mr Romney defended his tax record at a Republican presidential debate in Florida. | |
"I pay all the taxes that are legally required and not a dollar more. I don't think you want someone as the candidate for president who pays more taxes than he owes," Mr Romney said. | "I pay all the taxes that are legally required and not a dollar more. I don't think you want someone as the candidate for president who pays more taxes than he owes," Mr Romney said. |
On Tuesday, Mr Romney's campaign released his 2010 tax papers and estimates for his 2011 taxes, for which he has not yet filed a return. | |
He and his wife Ann reported income of $21.6m in 2010 and $20.9m last year, almost all it from investments. There were no declared wages on the 2011 estimate. | He and his wife Ann reported income of $21.6m in 2010 and $20.9m last year, almost all it from investments. There were no declared wages on the 2011 estimate. |
They gave $7m to charity in the same period, about half of it to the Mormon Church. | They gave $7m to charity in the same period, about half of it to the Mormon Church. |
President Barack Obama and his wife Michelle released their 2010 tax return in April last year, showing an income of $1.7m. They paid about $450,000 in federal tax, a rate of about 26%. | President Barack Obama and his wife Michelle released their 2010 tax return in April last year, showing an income of $1.7m. They paid about $450,000 in federal tax, a rate of about 26%. |
Tax debate | Tax debate |
Mr Romney had promised to release the figures, saying the question of tax had become a distraction for his campaign, and he wanted to re-focus on the main issues. | Mr Romney had promised to release the figures, saying the question of tax had become a distraction for his campaign, and he wanted to re-focus on the main issues. |
However, he had initially refused to release the returns, saying the financial disclosure reports that all federal candidates must provide should be enough. | |
But the reluctance allowed his Republican rivals and Democratic critics to focus on his record at private equity firm Bain capital, painting him as a wealthy businessman who cut jobs and shut down firms. | But the reluctance allowed his Republican rivals and Democratic critics to focus on his record at private equity firm Bain capital, painting him as a wealthy businessman who cut jobs and shut down firms. |
Mr Romney's supporters have leapt to his defence, equating attacks on his business practices with criticism of American capitalism itself. | Mr Romney's supporters have leapt to his defence, equating attacks on his business practices with criticism of American capitalism itself. |
But the issue has reignited the debate in the US over how investment income - in particular carried interest, the profits that private equity managers make - is taxed. | But the issue has reignited the debate in the US over how investment income - in particular carried interest, the profits that private equity managers make - is taxed. |
President Obama has said such income should be taxed at a higher rate, and that wealthy Americans and corporations should pay more tax to help trim the country's deficit. | President Obama has said such income should be taxed at a higher rate, and that wealthy Americans and corporations should pay more tax to help trim the country's deficit. |
Republicans are opposed to any tax hikes, saying they would harm the economy. | Republicans are opposed to any tax hikes, saying they would harm the economy. |
Gingrich surge | Gingrich surge |
Mr Romney had led the Republican field since November and appeared to have won the first two contests of the campaign, in Iowa and New Hampshire. | Mr Romney had led the Republican field since November and appeared to have won the first two contests of the campaign, in Iowa and New Hampshire. |
But the Iowa caucus result was overturned in a recount which gave a narrow victory to Rick Santorum. | But the Iowa caucus result was overturned in a recount which gave a narrow victory to Rick Santorum. |
Mr Gingrich, who polled poorly in both Iowa and New Hampshire, won a convincing victory over Mr Romney in South Carolina after attacking Mr Romney over his business and tax records. | Mr Gingrich, who polled poorly in both Iowa and New Hampshire, won a convincing victory over Mr Romney in South Carolina after attacking Mr Romney over his business and tax records. |
Mr Romney has called on Mr Gingrich to release documents related to his involvement with mortgage giant Freddie Mac. | |
Freddie Mac, a federally backed mortgage guarantor, required millions in government aid after in 2008 financial crisis. | |
In latest debate, Mr Romney said Mr Gingrich was doing business with Washington's "chief lobbyists". | |
Mr Gingrich said he served as a historian and consultant for the company, not a lobbyist. | |
Earlier on Monday, Mr Gingrich released his 2006 contract with Freddie Mac, but the document did not cover most of his multiple-year working relationship with the company. | |
The candidates are now campaigning in Florida, which holds its primary on 31 January. The state is seen as a major battleground in the US general election, with a diverse electorate and and a cash-hungry advertising market. | |
Primaries and caucuses will be held in every US state over the next few months to pick a Republican nominee to take on Democratic President Barack Obama in November. | |
The eventual winner will be anointed at the party convention in August. |