2012 GOP presidential frontrunner Mitt Romney seems unable to help himself from reminding everyone, over and over, just how rich he is. From talking about his NASCAR and pro football team owner friends to referencing his wife’s two Cadillacs, Romney continually reaffirms the stereotype that he’s an out-of-touch wealthy elite.
And his campaign certainly isn’t helping, bemoaning in today’s Wall Street Journal the “tax problem” created by Romney’s massive $100 million retirement account:
In any case, swelling the IRA to the size Mr. Romney’s reached has “created a tax problem” for the former Massachusetts governor, said a Romney campaign official. Tax-law changes since Mr. Romney’s Bain tenure mean that long-term capital gains in regular accounts now are taxed at 15%. But IRA gains are taxed at ordinary-income rates upon withdrawal, which for Mr. Romney, under current law, would be 35%.
“Who wants to have $100 million in an IRA?” said the campaign official.
Surely most people would happily accept a $100 million IRA, and all of its associated “tax problems,” if Romney is looking to offload it.
Furthermore, Romney’s own tax plan would alleviate his “problem” by implementing a 20 percent reduction in the top income tax rate. Even before he rolled out the second version of his tax plan, which took his absurd tax cuts for the rich even further, Romney’s tax plan would have cut his own taxes nearly in half.