Login
Password

Forgot your password?

The Wealth Gap and Mitt Romney's Taxes

By Edited Nov 29, 2016 0 2

Mitt Romney(114825)

The wealth gap in America is increasing and more middle class families are unfortunately ending up in soup kitchens or seeking help from friends, family, or charitable organizations.  During this recession, our unemployment rate has been steady at 8% (reportedly), although real unemployment is considerably higher than this number if you involve those who stop looking, are on unemployment benefits, or have at least a part time job (that barely pays the bills).  People are misguidedly looking for help and direction from the presidential candidates, Obama and Romney.  

Unfortunately, the problem is so severe that neither Obama or Romney will have the power to reverse the trend of a two tier economy (which is an economy where there are only rich and poor citizens, no middle class).  Taxes will inevitably go up no matter who's elected.  Our country's deficit will continually rise, no matter who's elected.  Our Federal Reserve will keep interest rates low, continually print money, and cause more inflation.  

Should "the rich" pay more in taxes?  

Well, let's take a look at what happens with the money that the "the rich" already have.  Let's use Mitt Romney's income for example (why not, since his tax returns are the subject of debate...).  Mitt earned approximately $21 million dollars in 2011 - his tax rate was about 14%, which means he paid an estimated $2,940,000 in taxes for 2011.  Now, the median household income in America is $50,000 approximately...and the most tax paid by each of these families is $17,500 (if you're somehow in the highest tax bracket of 35% and receive no tax refund checks...although we know everyone in this category would fall in the 25% bracket.  However, let's pretend the highest tax bracket is applied).  

Given these numbers, it would take 168 families to pay what Mitt Romney pays in taxes every year (2.94 million/17,500).  So, Mitt Romney's take home pay after taxes is about $18,060,000.  Now what happens to this money?  Does Romney put a little in the bank?  Absolutely he does, let's say half goes into several banks here and abroad ($9,030,000).  What do banks do with this money along with everyone else's?  They create loans and disburse it back into the economy.  

I'm sure the rest of the money Romney receives goes to investment projects and his living expenses (however extravagant)...once again back in to the economy.  Of course, Romney does make a percentage off of his money...just like everyone who invests or puts money in the bank.  Perhaps Mitt Romney and other wealthy people like him pay a lot already in tax?

Everyone can be wealthy.  But not everyone will be wealthy.

The Federal Reserve creates inflation and drives up the cost of living which makes it more probable that middle class people will eventually become poor.  But this does not have to be the case.  Almost everyone has a talent or a skill that can make his or herself richer.  I think that most American citizens have a chance to become wealthy if we become better producers.  Why do the rich get richer?  Because they produce a product or service and sell it to the masses.  Are you producing a product for yourself (going to work for someone else is NOT your product...you are producing for your employer.)  Go ahead, create a product you can sell in the marketplace.  And watch your wealth increase.

BE FREE

 

 

Advertisement
Advertisement

Comments

Oct 13, 2012 9:01pm
LavenderRose
For us, it didn't work that way -- although my husband was selling a service/skill, rather than a product. It was much too stressful, and we just got poorer and poorer. Today, he uses the same skills but produces for his employer. We are middle class, happy, and enjoy our lives now.
Oct 15, 2012 9:11am
barringtonlewis
That's all that matters LavenderRose! You are happy and enjoy your lives! The first venture didnt work out so well - but you're happy now. Being happy and stress free is what it's all about.

Thanks for your comment!
Add a new comment - No HTML
You must be logged in and verified to post a comment. Please log in or sign up to comment.

Explore InfoBarrel

Auto Business & Money Entertainment Environment Health History Home & Garden InfoBarrel University Lifestyle Sports Technology Travel & Places
© Copyright 2008 - 2016 by Hinzie Media Inc. Terms of Service Privacy Policy XML Sitemap

Follow IB Lifestyle