Mitt Romney told CBS’s 60 Minutes that it’s “fair” for him to pay a tax rate of just 14.1 percent on his investment income of $20 million, a lower rate than someone earning $50,000 a year in wage income:
SCOTT PELLEY (HOST): Now, you made on your investments, personally, about $20 million last year. And you paid 14 percent in federal taxes. That’s the capital gains rate. Is that fair to the guy who makes $50,000 and paid a higher rate than you did?
ROMNEY: It is a low rate. And one of the reasons why the capital gains tax rate is lower is because capital has already been taxed once at the corporate level, as high as 35 percent.
PELLEY: So you think it is fair?
ROMNEY: Yeah, I think it’s the right way to encourage economic growth, to get people to invest, to start businesses, to put people to work.
There is little economic evidence to support Romney’s argument that higher capital gains and dividend rates will discourage investment.