Why does the rich pay less taxes?

They know all the loopholes and have the best accounting people.

The rich as a group pay much higher taxes than others.

The 14% is federal income tax. Most Americans do NOT pay anywhere near 30%, and most pay considerably less than 14%. A single person making $50,000 with NO deductions, credits or dependents would have paid about 12% for 2012 that's the most the 50K person would have paid. A married couple making 50K, with no deductions, credits or dependents, would have paid 7.6%.

The average American citizen does NOT pay 30%, not sure where you get that figure. They pay less than Romney's 14%. Romney's 14% was 7 million dollars by the way.

On Romney's tax return, there are the following lines in question:

Adjusted Gross Income (13.7M)

Taxable Income (9M)

Tax before credits (2M)

and Total Tax (1.9M).

To get his 14%, Romney is using Total tax / AGI.

Most taxpayers, I believe, would NOT use AGI, but Taxable income. (As, in looking at only the 10%, 15% and 25% bracket rates). Using taxable income/ total tax for Romney is 21%.

21% sounds better, but is still low to most Americans because $9 million of "ordinary" income would still be in a much higher tax bracket. That is even with AMT, as AMT uses the same long term capital gains rate that the regulat tax system does.

I guess that I am way below average. I am only paying 9%.

14% is only for federal income tax. It is not for FICA taxes, state income taxes, property taxes, sales tax, or any other type of tax. Actually nearly half of all American citizens pay NO federal income tax. So by saying that 30% is the average, you surely haven't done your homework.

Mitt Romeny is worth about $200Million. Most of these money is in investments that are controlled by others, it's called blind trusts. The taxes for these investments are paid by the "trust".

The money his family uses to live on, is from investment income and capital gains (i.e. investment income) is currently at a lower tax rate than earned income (i.e. money you earn working a traditional job). Don't worry... when he had a traditional job he was paying TONS of taxes. He was a high wage earner in a era when taxes were significantly higher than they are now.

One, Romney's taxes are in capital gains tax, not income tax. And two, in order to be paying a 30% income tax you'd have to make around $200,000 - the average american doesn't make that much.

14 percent is based on income his companies file and pay taxes separately. Better question is why do 40% of citizens pay 0% and some even get cash back.

14% of a few million is a lot more than 30% of a couple thousand. They live more off investments which are taxed lower than wages. The average person does not pay 30%. It is do not does.

That 14% amount in taxes is a lot more $$$$$$ amounts than the one that does pay the 30% rate for this purpose and time in their life. Good luck to you.

Hope that you find the above enclosed information useful. 09/22/2012

Basically Romney had a bulk of his income from dividends and capital gains that are taxed at lower rates and he gave away a lot of his money to charity. I think the % numbers would be more comparable if they used taxes due / taxable income instead of using adjusted gross income as the denominator.