http://swampland.time.com/2012/01/24/mitt-romney-releases-tax-returns-paid-lower-taxes/ How did multi-millionaire Mitt Romney get to pay at a lower tax rate than his secretary or many middle and "working class" Americans for that matter? It clearly reflects a regressive tax system when, in fact, the US federal income tax is structured to be progressive. That is, the more you make, the higher your tax rate should be. Since we're talking about income taxes, not some other kind of tax, something must be terribly wrong. Well, when you see how Romney did it, it's not so easy to see a solution, The basic reason is that wealthy people don't make most of their wealth from income. They make it from investments, which can grow to massive size without being taxed at all. You only pay an income tax when you sell some of your holdings at a profit. Even then, there are loopholes that reduce the tax which benefit the middle class as well as the wealthy. Consider middle class people who retire and sell their home of many years at a big profit Romney had a taxable income of about $20 million after a charitable donation in the year in question. The amount came from selling stock at a capital gain where the rate is 15% vs the "tax reformed" rate of 35% on ordinary income for Romney's tax bracket. I wouldn't have mattered if it was 80%, since it's not ordinary income. Nothing fancy. Just taking advantage of a loophole that anyone who owns a house or condo or common stock, among other things, can benefit from. What's your solution, if you believe this needs a solution?