At 102%, His Tax Rate Takes the Cake

James Ross, 58, is a founder and managing member of Rossrock, a Manhattan-based private investment firm that focuses on commercial real estate and distressed commercial mortgages.

Mike Kemp | Getty Images --------------------------------------------------------------------------------

“I realize I am very fortunate, and in fact I am a member of the 1 percent,” Mr. Ross wrote in an email. His résumé is studded with elite institutions: Yale, Columbia Law School and stints at the law firms Cravath, Swaine & Moore in New York, and Holland & Hart in Denver. Since his company fits the category of private equity, he even has carried interest, the kind of incentive compensation that enabled Mitt Romney to pay such a low tax rate.

Yet Mr. Ross told me that he paid 102 percent of his taxable income in federal, state, and local taxes for 2010.

Total BS liberal article. It further explains the tricks the liberal author used to claim 102%. The article says the taxpayer pays 20% in taxes. The trick they use is “taxable income” versus AGI, but even then they lie about what that is.

It is nothing more than a hit piece on the rich.

The article does touch on a couple valid points. Explained differently: When Obama and his ilk focus on “taxing the rich” and ending the “Bush tax cuts”, what they are really talking about is raising the tax rate on “earned income” as opposed to capital gains.

Earned income is made by people who receive high salaries, or who own small businesses that make over $200,000 of business income, but are taxed at personal income tax rates as sub-S corporations or limited liability companies. These are the people who are working hard and trying to accumulate wealth by saving their money and/or reinvesting in the growth of their small business. These are the people Obama likes to raise taxes on, so that they pay higher tax rates than the largest industrial corporations.

Wealthy campaign donors who already have a large amount of accumulated wealth typically receive the majority their income in the form of capital gains which is taxed at 15%, and through tax free municipal bonds. (By doing this, John Kerry and his wife, Teresa Heinz paid an overall effective tax rate of about 15% while he was running for president.) Obama and his donors don’t want the press or media to point this out. His buddy, Warren Buffett, is probably as big an example of this as you will find. Nancy Pelosi is another good example, aided by the ability to use insider information as a member of Congress, and an insider on many influential Congressional committees. Being Speaker didn’t hurt, either.

*** Jesus, really? ***

Yes, really -- if you read the article you posted you'd have seen that.

In fact, he actually only paid 20% on his Adjusted Gross Income. But on his Gross Income it came to 102%. However that 20% was after all his itemized deductions, which is still money out of his pocket. This is similar to the old slight of hand when 'Millionaires' were (cough) taxed at 90%. But like now, no 'millionaire' ever came close to paying 90% in Taxes on his 'millions in income'.

The one consistent thread through this is that it shows our Tax Code is FUBAR and needs to be scrapped in its entirety.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.