Romney's Taxes Will Hurt Him (ContributorNetwork)

COMMENTARY | Mitt Romney has released his tax records, reports Reuters. The records, from 2010 and 2011, indicate he is paying an average tax rate of about 14.5 percent over the two years. The reason the tax rate is far lower than the maximum income tax rate of 35 percent is that Romney's income is primarily from investments, which are taxed at a lesser rate. For both years combined, Romney will pay around $6.2 million on $42.5 million in income. His net worth is estimated at $190 million to $250 million.

Romney may have done himself a disservice by revealing he pays far less taxes than he would if his income came in the form of a wage or salary, as is the case for most Americans.

According to Businessweek, billionaire investor and philanthropist Warren Buffet is upset Congress allows investors like Romney to pay lower taxes than others:

"He makes his money the same way I make my money," Buffett said. "He makes money by moving around big bucks, not by straining his back or going to work and cleaning toilets or whatever it may be. He makes it shoving around money."

This news may be especially painful for Romney in that it taints his attacks against top challenger Newt Gingrich, the former Speaker of the House who has received hefty payments from mortgage giant Freddie Mac. Romney is attacking Gingrich by insisting the former congressman received $1.8 million in dubious consulting fees while Freddie Mac harmed homeowners during the recession, reports The Washington Post.

When pitting corporate payments against corporate payments, it may be a good idea for Romney to tread lightly. While Gingrich may get some mud on his reputation, plenty will splatter back on Romney himself. While Romney may be desperate to regain the initiative and head off Gingrich's momentum before the Florida primary, it may backfire if he starts highlighting corporate ties and investments.

Source: http://us.rd.yahoo.com/dailynews/rss/personalfinance/*http%3A//news.yahoo.com/s/ac/20120124/pl_ac/10877417_romneys_taxes_will_hurt_him

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