The 1040 tax return for 2010 that Newt and Callista Gingrich released Thursday night shows that they are paid very well – in the top three-tenths of one percent of all tax filers.
Their total income in 2010 was more than $3.1 million. Newt and Callista Gingrich paid nearly $1 million in income tax. Their effective tax rate is 31 percent.
In the most recent year for which IRS data is available, 2009, only about 62,000 individual income tax returns (out of a total of 140 million tax returns) reported adjusted gross income of between $2 million and $5 million. Those people had an average effective tax rate of about 25 percent. So the Gingriches paid at a higher effective tax rate than the average tax filer in their income bracket.
And if Mitt Romney is correct in estimating that his effective income tax rate is 15 percent, the Gingriches paid at a higher rate than did Romney and his wife Anne.
Most of the Gingriches' income came from royalties, partnerships and other non-wage income. From Schedule E of the return it appears that the income came from two ‘S’ corporations, the Lubbers Agency and Gingrich Holdings, and from two partnerships, the Draper Fisher Jurvetson Fund VIII, a venture capital fund based in Menlo Park, Calif. and the FLC XXXII Partnership.
The tax return also shows that the Gingriches paid $19,800 in alimony in 2010. They also gave $81,133 to charities.
When Romney was asked in the CNN debate Thursday night why the voters in South Carolina should not be able to see his 2010 tax return before they vote in Saturday’s primary, he replied, “Because I want to make sure we beat President Obama. And every time we release things drip by drip, the Democrats come out with another array of attacks. As has been done in the past, if I’m the nominee, I’ll put these out at one time so we have one discussion of all of this. Obviously I pay all full taxes. I’m honest in my dealings with people… My taxes are carefully managed. I pay a lot of taxes, I’ve been very successful and when I have our taxes ready for this year, I’ll release them.”
To this Gingrich replied, “If there’s anything in there that is going to help us lose the election, we should know it before the nomination….”