Tax law benefits wealthier citizens

Perhaps publicity on Mitt Romney's taxes will inform the public that the tax law benefits wealthier citizens.

I assume Romney pays 15 percent on income that is mostly from dividends and capital gains. I expect Romney is complying with the law. The inequity is in the law.

A person working for a living can pay a top income tax rate of 35 percent plus Social Security and Medicare taxes. A person living on dividends and capital gains pays a maximum rate of 15 percent. The tax on capital gains is deferred until the assets are sold, and escape income tax altogether if held until death.

I don't expect Newt Gingrich to criticize Romney's low tax burden because under Gingrich's proposed tax system, Romney would pay nothing on dividends, capital gains or interest, allowing him to escape federal taxes altogether. Rick Santorum's plan would give him a 20 percent discount to 12.5 percent.

Middle class people also pay the low rates on dividends and capital gains with a zero rate for any such income in the 10 percent or 15 percent tax brackets. However, their investments are frequently held in retirement accounts. Tax is deferred until the money is withdrawn, however, it is then taxed as ordinary income with the maximum rate of 35 percent.

Hopefully, scrutiny of Romney's taxes will cause a public airing of the inequities in the current tax law that favors the wealthy over the working.

John D. Bryant

Cedar Rapids