In a statement Friday, Reid accused Romney of having “manipulated” his taxes to limit his charitable deductions and pay a rate above 13 percent.
At a Republican presidential primary debate in January, on the same night he released his 2010 tax returns, Romney scoffed at the notion that he would pay more taxes than is legally required.
“I pay all the taxes that are legally required and not a dollar more,” he said. “I don’t think you want someone as the candidate for president who pays more taxes than he owes.”
Davis said that Romney “has been clear that no American need pay more than he or she owes under the law. At the same time, he was in the unique position of having made a commitment to the public that his tax rate would be above 13 percent. In order to be consistent with that statement, the Romneys limited their deduction of charitable contributions.”
The capital gains rate that Romney paid applied in part to income he received from Bain Capital. In the world of private equity, hedge funds and other partnerships, a large chunk of compensation for managers is known as “carried interest.” It is subject to the lower capital gains rate instead of the higher earned income rate.
The Romneys’ return included dozens of pages listing foreign investments in complex financial derivatives known as collateral debt obligations and collateralized loan obligations made through hedge funds managed by Goldman Sachs and a credit arm of Bain. The Romneys’ investments included securities with names such as Bryant Park, Egret Funding and Harbourmaster, most based abroad in the Grand Caymans, Dublin or Amsterdam.
While Romney’s 2011 return is 379 pages, the 2011 return of his running mate, Rep. Paul Ryan (Wis.), also released Friday, is 32 pages. Ryan had an adjustable gross income of $323,416 and paid $64,764 in taxes, for an effective rate of 20 percent, according to his return. He earned $153,359 in wages, $33,153 in capital gains and more than $116,043 from rental real estate, royalties and other miscellaneous income.
Tom Hamburger and Brady Dennis contributed to this report.