I think one of the long-term implications of Mitt Romney’s run to be the Republican candidate, is that there will be tax changes in America. It seems ludicrous, as it is being revealed, that the laws in America would change so that you pay much less tax on investment income, than on income from ordinary salaries and considerably less. Worse the definition of what is investment income is extremely generous to those working at big Wall Street firms.

In other words, wealthy people simply make investments, and then live off the income from the investments paying as little as 15% tax, while everyone else has to rely on their salary and pays let’s say 30% or 35% tax. The people who need the tax breaks the most don’t get it, and the people who should be paying the most tax, namely the wealthy, don’t pay it. I have written about this in my blog before, but it is no doubt going to become a bigger feature of the election for a man who is worth in excess of $250 million pays less than half the tax than the average American, and also pays, for example, considerably less tax each year than the current President Barack Obama pays. I think many wealthy Americans will ultimately regret Romney’s effort to become President because I think they will see tax hikes for “investment income” as they define it.