Mitt Romney released is tax returns on January 24th, 2012. His 2010 earnings showed $21.7 million in income with an effective tax rate of just 14%. last week and his tax rate came in around 31%.

Why is Romneys Tax Rate so low? Unlike Newt, Romneys income mostly comes from dividends which are not taxed at the same rate as ordinary income. Dividends are typically taxed at 15%. His tax rate was dropped more from charitable donations and other itemized deductions that he was able to claim. Many people take this lower tax rate out of context because people dont understand that the capital gains income he is receiving has already been taxed by the Government before he receives the income.

Highlights from Mitt Romneys Tax Return

• Donated $7 million in the past two years
• Donated $4.1 million to the Church of Jesus Christ of Latter-day Saints
• Majority of income came in the from of dividends
• Tax rate of 14%
• Mitts real first name is Willard

Romney stated that his tax return is entirely legal and fair. He also stated, I pay all the taxes that are legally required and not a dollar more.

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Euro retreats mildly after IIF has made the “maximum” debt swap offer but was rejected by Eurozone finance ministers. As Dutch Finance Minister Jan Kees de Jager said the offer would leave’s debt “substantially above 125% of GDP in 2020, missing the target of 120% of GDP. Luxembourg Prime Minister Jean-Claude Juncker said that the Greek program is “off track” and he demanded new coupon rate to be below 3.5% until 2020 and below 4% over the full 30-year period. IMF also raised the concern that the proposed plan would leave Greece with higher than expected debt burden. Greece Finance Minister Evangelos Venizelos remained optimistic that there was “very constructive cooperation with private sector” and they’re “ready to finalize the procedure on time.” Venizelos expects to present a formal offer to creditors by February 13.

IMF Managing Director Christine Lagarde urged European officials to raise the bailout fund and build a larger “firewall”. Lagarde said that “substantial real resources” needs to be added by doling the temporary EFSF into the permanent ESM. Also, she proposed fiscal risk-sharing to deepen Eurozone’s integration, including “euro-area bonds or bills” and debt redemption fund. Meanwhile, it’s reported that Germany could be open to combining the capacity of EFSF along with ESM starting in July and run the two funds in parallel.

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***Economic Data***
– (EU) ECB: €3.4B borrowed in overnight loan facility v €3.3B prior; €490.5B parked in deposit facility vs. €491.8B prior
– (FI) Finland Dec Unemployment Rate: 7.4% v 6.8%e
– (ZA) South Africa Nov Leading Indicator: 132.2 v 131.4 prior
– (FR) France Jan Preliminary PMI Manufacturing: 48.5 v 48.6e; PMI Services: 51.7 v50.0e
– (CZ) Czech Jan Business Confidence: 7.4 v 5.3 prior; Consumer Confidence: -25.3 v -29.8 prior; Composite: +0.8 v -1.7 prior
– (ES) Spain Nov Mortgages-capital loaned Y/Y: -32.6% v -40.6% prior; Mortgages on Houses Y/Y: -35.8 v -43.6% prior
– (AT) Austria Nov Industrial Production M/M: 0.0% v 0.1% prior; Y/Y: 2.5% v 3.5% prior
– (DE) Germany Jan Advanced PMI Manufacturing: 50.9 v 49.0e (first growth since Sept 2011); PMI Services: 54.5 v 52.4e (highest level since June 2011)
– (EU) Euro Zone Jan Advanced PMI Manufacturing: 48.7 v 47.2e; PMI Services:50.5 v 49.0e; PMI Composite: 50.4 v 48.5e
– (UK) Dec Public Finances (PSNCR): £22.9B v £19.0Be; Public Sector Net Borrowing: €10.8B v £12.1Be; PSNB ex Interventions: £13.7B v £14.9Be v £18.1B prior
– (EU) Euro Zone Nov Industrial New Orders M/M: -1.3% v -2.2%e; Y/Y: -2.7% v -2.7%e

Fixed Income:
– (NL) Netherlands Debt Agency (DSTA) sold €1.835B vs. 1.5-2.5B indicate Read more…

While the price action is far from comforting for market participants, there has at least been some consolidation following the latest wave of selling on Friday on the back of the S&P downgrades. But the downgrade of Portugal to junk status and ongoing fear of default out of Greece will keep investors on the defensive and should open the door for additional currency liquidation in favor of the US Dollar over the coming sessions. Next key support for the Euro comes in around the 1.2500 area and a test of this barrier could be seen very soon.

Still, we are not to sure that the Euro declines will extend much further before seeing the first major corrective rally in 2012. While the rating agency downgrades are certainly Euro negative, they have not come out of left field and market participants were anticipating these downgrades for some time already. We believe that a good deal of the Euro weakness in recent weeks had already priced in the downgrades, a development which could mute intensified selling after the actual announcement. Read more…

Hoping to offset a disappointing holiday season, Target is relying on some tried and true designer partnerships to bring more of its core customers through the doors and testing the waters with cult favorite Apple, in an effort to attract new ones.

First up will be Jason Wu for Target, a limited collection of dresses, handbags and scarves by the young designer made famous by Michelle Obama — he designed the gown she wore to the inauguration — that will roll out Feb. 5. Then in May, the retailer will launch “The Shops at Target,” a series of design partnerships with small boutique businesses, that will offer several more limited-edition collections.

But perhaps the most anticipated alliance is the trial sale of Apple’s iPhones, iPads and other products in Target stores. The rollout will initially occur in 25 stores, according to spokeswoman Dustee Jenkins, who refrained from providing additional details like when the products would be available.

Target has always been a “women-friendly store,” said Britt Beemer, retail analyst and chairman of America’s Research Group. Read more…

Euro is rallying after some earlier weakness as positive sentiment returns to the Forex market. Hopes for ECB/IMF money, as well as good news out of the US, are helping the 17-nation currency.

Earlier, the euro weakened as sentiment turned a little negative. US dollar made some gains, but those are being erased as the euro rallies on the latest round of news. There are rumors that the ECB will lend money to embattled eurozone countries via the IMF. This news is prompting hopes that eurozone countries will be able to get themselves out of the current mess.

On top of that, Forex traders are responding favorably to the latest economic news out of the US. November nonfarm payrolls show that the 120,000 jobs were added to the economy in November. Between this uptick in jobs, and evidence that US consumers are ready to spend this holiday season, it appears that America’s economy is slowly recovering.

This news is prompting some risk appetite, and encouraging the euro to head higher in Forex trading. How long the current sentiment will last is up for debate, but, for now, the euro is doing well enough.

At 15:08 GMT EUR/USD is higher at 1.3474, up from the open at 1.3462. EUR/GBP is up to 0.8599 from the open at 0.8580.

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