Romney’s case shows inequities

Joy Bellis, Las Vegas

Monday, Jan. 23, 2012 | 2:02 a.m.

The inequities in our tax system have never been more clearly revealed than they have been with Mitt Romney’s recent acknowledgment of his favorable 15 percent tax rate. The more affluent in our formerly successful economy have also benefited from the capital gains tax. Of course with the recent economic slump there haven’t been many gains made by investors. This doesn’t alter the fact that the wealthiest in our country do not earn money in the ordinary way — working for it. They make money by moving money around.

Investment into new businesses may provide an opportunity for more jobs, but most investment in the market is the exchange of stocks from seller to buyer at a current valuation providing a profit or loss to the seller with the seller subject to a 15 percent tax on his profit. The companies creating corporate profits do so by reducing the number of employees and salaries, to the benefit of their investors. The 15 percent tax is paid on this income, while the worker who puts in 40 hours or more at one or two jobs (perhaps at only two-thirds of what he previously made) may pay as much as 35 percent in federal income tax. Equitable for all?