Romney’s Tax Rate in 2010: 13.9 Percent

Mitt Romney (center) celebrates being rich.Bain Capital


Mitt Romney released his his 2010 tax return on Monday night, and it turns out he actually paid an effective tax rate of 13.9 percent that year, according to the Washington Post:

They sent somewhat less to Washington over that period, paying an estimated $6.2 million in federal income taxes. According to his 2010 tax return, Romney paid about $3 million to the IRS, for an effective tax rate of 13.9 percent.

For 2011, Romney estimates that he will pay about $3.2 million, for an effective rate of 15.4 percent. That’s in line with his earlier estimates, but sharply lower than the rates paid by President Obama and Romney’s closest Republican rival, Newt Gingrich.

Previously Romney had estimated his tax rate as being “around” 15 percent. To put this in perspective, Romney, who according to the Post makes about twenty million dollars a year mostly through capital gains and investments, pays a lower effective tax rate than American households making an average pretax income of $64,500 a year. Those middle-income folks pay an effective tax rate of 14.2 percent, according to the Congressional Budget Office. Romney’s tax plan would cut his tax rate even further.

If that doesn’t quite seem fair to you, that’s probably what the Obama administration hopes you’re thinking. We still don’t know what tax rates Romney paid before 2010, but he did release his estimated taxes for 2011, for which he expects to pay an effective rate of 15.4 percent.

THE BIG QUESTION...

as we head into 2020 is whether politics and media will be a billionaires’ game, or a playing field where the rest of us have a shot. That's what Mother Jones CEO Monika Bauerlein tackles in her annual December column—"Billionaires Are Not the Answer"—about the state of journalism and our plans for the year ahead.

We can't afford to let independent reporting depend on the goodwill of the superrich: Please help Mother Jones build an alternative to oligarchy that is funded by and answerable to its readers. Please join us with a tax-deductible, year-end donation so we can keep going after the big stories without fear, favor, or false equivalency.

THE BIG QUESTION...

as we head into 2020 is whether politics and media will be a billionaires’ game, or a playing field where the rest of us have a shot.

Please read our annual column about the state of journalism and Mother Jones' plans for the year ahead, and help us build an alternative to oligarchy by supporting our people-powered journalism with a year-end gift today.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

We have a new comment system! We are now using Coral, from Vox Media, for comments on all new articles. We'd love your feedback.