Tuesday, 24 January 2012
As if to prove my point from earlier today - about very wealthy people paying very low marginal rates of tax - the following example comes winging its way to me from across the pond - in America.
Apparently, the USA presidential hopeful - Mitt Romney - who is standing for the Republican nomination - expects to pay only about $6.2m (£4m) in taxes - on income of $42.5m which he has earned in the last two years.
Now if you do the math over the two years - this breaks down into a tax rate of 13.9% in 2010 and an expected rate of 15.4% in 2011 - according to the Romney campaign.
Which has finally released the figures today - to a hungry press.
But only after coming under great pressure - to be more open and transparent about his tax affairs.
I am told that investment income is treated much more generously in America - than earned income - and this is probably true across the rest of the world as well.
Yet what this means is that going out and doing an honest day's work is taxed more heavily - than just sitting on your ass - waiting for your stocks and shares to put food on the table.
And $42.5 million buys a whole bunch of Popsicles in 2012 - a darn sight more than any one person can eat, I would say.
So why should it be investment income be treated so much more leniently - than earned income?
Who knows - maybe the Book of Mormon has the answer.