General Discussion
In reply to the discussion: Check in if you, or someone you know, pays a higher tax rate than Mitt Romney. [View all]oldhippie
(3,249 posts)I can't believe everyone here pays what they say. You have to be making a LOT of money to pay an effective federal tax rate (what we are talking about) of greater than 15%.
Effective federal tax rate is not the marginal rate. It does not include FICA or state taxes. It is federal income tax paid divided by gross income.
I'll use myself as an example. 2010 was my last year working before I retired. I did pretty good income-wise. I had wage income, a very little bit of interest and dividend income (less than $200), and nothing else. I took the standard deductions and exemptions. No fancy stuff at all. I had a $1500 energy tax credit from replacing my heat pump which failed last winter (replacement was over $8K.) No other fancy credits or deductions.
From my TurboTax summary:
Adjusted Gross Income $104K
Taxable Income $84K (after standard deduction and exemptions)
Tax Due $11K (from the tax tables, married filing jointly)
EFFECTIVE TAX RATE 10.8%
Even without the $1500 energy credit my effective tax rate would have been 12%.
Now, I would like to see the same numbers from some of you that are claiming to have paid more than Mittens in effective federal tax rate. Either you have adjust gross income of $150K or more (which is well above median household income, and almost halfway to becoming a 1%er), or you need a new tax preparer.
Not trying to defend the Mitt here, but the numbers I see flying around don't make sense. I think evryone is defining their own idea as to what a "tax rate" is.