Effective Tax Rate: Not As Simple As It Seems
Mitt Romney recently expressed the belief that his effective tax rate is roughly 15 percent. Most people become incredulous upon hearing this claim.
Their initial thought is that most people pay a much higher rate than that.
The reality is that they really don’t, however.
In fact, based on the specific calculation methodology, Mr. Romney’s effective rate is significantly higher than that of most Americans’.
Comprehending why this is true requires understanding that “effective tax rate” does not equate to your maximum income tax bracket. Those rates range between 10 and 35 percent, depending upon gross annual income.
This figure … Read more at 2010 Tax.
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