In this particular instance you're potentially as likely to receive punishment as he is, and as that other fella with you is.

The simple reasoning is:

1- Don't threaten to report people and then rub it in their faces-- that's a form of trolling, and it's antagonizing. Just report them, and stay silent. Give them no ammo to use back against you.
2- Fighting trolling by trolling, or insults with insults, is just as bad. That man there who decided to fight the jerk by being a jerk right back, is in as much potential trouble as the jerk himself.

And yes, you should definitely remove that screenshot from your thread now that it's served its purpose. I will tell you that yes, this is fully reportable, and I've gotten a few people slammed for it before, much to my amusement.