How Mitt Manufactured a Charitable View of His Taxes
This worthwhile piece on the charities Mitt Romney gives millions to (largely, the Mormon Church and the Mormon Church) got me thinking about the chronology of Mitt’s 9 month slow reveal (sic) on taxes. The headline takeaway from Mitt’s tax returns among Mitt supporters on Friday was his generosity: Mitt gave 30% of his income to charity and why didn’t Obama–to say nothing of Joe Biden–give as much.
But look at how that view came about.
Romney’s tax troubles started in January when Newt Gingrich started pressuring him to release his taxes. So on January 24, Mitt released both his 2010 taxes–which had been submitted October 15, 2011–as well as estimated taxes for 2011–which came with a big “IN PROCESS RETURN” stamped on it and were never signed or submitted.
Those records showed that Mitt had donated 13.79% of his $21.6 million income in 2010, and 19.24% of his $20.9 million in 2011.
Of course, by that point, Obama’s 2010 tax returns were already public. They showed he had donated 14.18% of his $1.7 million income. Thus, at that point, it appeared that Obama had donated more to charity in 2010, but Mitt had donated a higher percentage of his income in 2011 than what Obama had donated the year before.
Obama released his 2011 tax returns on April 13. They showed he had donated 21.8% of his $789K income, or a few percentage points more in charity than Mitt had declared in January.
Mitt, of course, had filed for an extension. So it was not until Friday when we got his 2011 taxes. But that release came in two steps. First, before 2PM, a statement from his Trustee, personal lawyer and longtime associate, Brad Malt. He said the Romneys had donated “nearly 30% of their income” in 2011.
Regarding the newly-filed 2011 Tax Return:
- In 2011, the Romneys paid $1,935,708 in taxes on $13,696,951 in mostly investment income.
- The Romneys’ effective tax rate for 2011 was 14.1%.
- The Romneys donated $4,020,772 to charity in 2011, amounting to nearly 30% of their income.
- The Romneys claimed a deduction for $2.25 million of those charitable contributions.
- The Romneys’ generous charitable donations in 2011 would have significantly reduced their tax obligation for the year. The Romneys thus limited their deduction of charitable contributions to conform to the Governor’s statement in August, based upon the January estimate of income, that he paid at least 13% in income taxes in each of the last 10 years.
Now, Malt didn’t exactly hide what was going on here–that Mitt was claiming to have given money to charity that he didn’t declare on his taxes so as to boost his tax rate over the 13% he had discussed earlier in the summer. But the introduction to the bullets–“Regarding the newly-filed 2011 Tax Return”–implied, falsely, that all the information in the bullets came directly from Mitt’s tax returns.
Nevertheless, a bunch of reporters took that statement and ran with it, resulting in articles like this one:
Romney 2011 taxes: Mitt gives more to charity than President Obama, Joe Biden
Republican presidential nominee Mitt Romney was far more generous to charities than President Barack Obama or Vice President Joe Biden last year, both in dollar terms and as a percentage of income, tax return data Romney’s campaign released Friday indicate.
Romney and his wife, Ann, gave 29.4 percent of their income to charity in 2011, donating $4,020,772 out of the $13,696,951 they took in.