The Romney campaign has today decided to release their tax returns for 2011, revealing that they paid over $1.9million in taxes on $13,696,951 of income.
In the details of the return, it was revealed that the GOP presidential candidate had a tax rate of 14.1 per cent, and donated a little more than $4million to charity.
The full returns will be released at 3pm today.
According to the release by Romney trustee Brad Malt, the Romney’s charitable donation of $4,020,772 to charity last year ‘significantly reduced their tax obligation for the year.’
Romney’s campaign said the candidate had paid an effective tax rate last year of 14.1 percent, and owed an average effective federal tax rate of 20.2 percent over the 20-year period ending 2009.
The former Massachusetts governor and former head of Bain Capital has been under significant pressure to release his tax returns, especially from the Obama campaign.
According to Mr Malt, the Romney’s will release a notarised letter from Pricewaterhouse Coopers as proof that both Mitt and Ann Romney paid their state and federal income taxes for the past 20 years.
Talking Points Memo notes that Mr Romney artificially inflated his tax rate so that he could remain in his self-proclaimed 13 per cent tax bracket by way of deferring $1.75million in charitable donations.
The couple’s 2010 tax return had already been released.
Campaign officials said the couple filed the return Friday with the Internal Revenue Service, after receiving an extension.
Mr Romney released his 2010 tax returns and a 2011 estimate in January, but he has declined to disclose his returns from earlier years.
His vast fortune and his long association with Bain Capital, the private equity firm he cofounded, have been much discussed this year.
His campaign earlier estimated that Romney would pay about $3.2million in taxes for the year, an estimate well above the $1.9million actually paid. He paid about $3million in federal income taxes in 2010 – an effective rate of 13.9 per cent.
Critics, including Mr Obama, have urged Mr Romney to release more than just the two years of returns and follow his father’s model. When George Romney ran for president, he released 12 years of tax returns.
Romney’s campaign did put out a summary Friday by Brad Malt, the trustee of the couple’s blind trust, saying that over the 20-year 1990-2009 period, the Romneys owed both state and federal income taxes and paid federal taxes at an effective annual rate of 20.2 per cent.
Mr Obama’s own tax return for last year showed that he and his wife, Michelle, paid $162,074 in federal taxes on $789,674 in adjusted gross income, an effective tax rate of 20.5 per cent.
Their income plunged from $1.7million in 2010, with declining sales of the president’s books. In 2009, the Obamas reported income of $5.5million, fuelled by the best-selling books.
It has been a trying week for the presidential hopeful, as Mr Romney has been doing damage control for the leaked fundraising video in which he notoriously said that 47 per cent of the nation ‘believe that they are victims’ and don’t pay federal income tax.