Romney admits to paying lower taxes than millions of Americans

Washington, Jan 18 (ANI): US Republican presidential hopeful Mitt Romney has acknowledged that he pays a lower tax rate than millions of struggling Americans.

Romney, who is thought to have amassed a 250 million dollars fortune as a private equity boss and is facing intense pressure to release his tax returns, said he paid 'probably close' to 15 per cent of his income in tax.

"My income comes overwhelmingly from some investments made in the past, whether ordinary income or earned annually," The Telegraph quoted Romney, as saying.

"I get speaker's fees from time to time, but not very much," he added.

According to the paper, this means that despite earning millions of dollars a year, Romney's effective tax rate is the same as an American worker paid 39,000 dollars a year.

A disclosure earlier stated that in February 2011 Romney was paid about 375,000 dollars for nine speeches.

According to the report, under reforms made by George W. Bush, dividends, capital gains and other returns on investments Romney made as head of corporate firm Bain Capital, are subject to a marginal rate of 15 per cent, compared to 35 per cent for regular income above 379,150 dollars.

The loophole was highlighted by a complaint from Warren Buffett, the billionaire investor, that he paid a lower tax rate than his secretary.

According to the report, by contrast, President Barack Obama and his wife Michelle paid an effective federal income tax rate of 26 per cent, their most recent filings have revealed. (ANI)