Mitt Romney paid taxes at a rate of “close to 15 per cent” in recent years, he said yesterday in an admission that will reignite debate about how investment income is favourably treated compared to ordinary wages.
Mr Romney, the target of rival Republicans desperate to slow his momentum ahead of Saturday’s South Carolina primary, said that in the past decade his income had come “overwhelmingly from some investments made in the past”.
The underlying political issue is why income earned by private equity executives – the industry in which Mr Romney made his estimated $250m fortune at Bain Capital – is taxed at 15 per cent, rather than the higher rates paid as income tax on wages.
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