quote:Originally posted by SalesServiceGuy:
Romney is on the front page once again with disclosure that he paid effectively 14% personal tax rate in 2011.
But contrary to popular perception, Romney's effective federal income tax rate is still higher than that of most Americans -- 80% of whom have an effective rate below 15%. That number, however, does not include other federal taxes such as the payroll tax.
The reason Romney's rate is so low -- despite having one of the highest incomes in the country -- is because his income was derived almost entirely from capital gains and dividends from his extensive portfolio of investments. And that form of investment income is typically taxed at just 15%, well below the 35% top tax rate for high earners.
The average tax rate for Canadians is over 20%. Mine was 23% last year and I had a lot deductions.
I think the USA should have a minimum tax rate on all citizens of at least 17-18% no matter how many deductions or entitlements you have.
SSG I agree that the US should have some sort of minimum tax. However 17-18% would hit low income families really hard. The government needs to decrease spending and then adjust the tax codes so that everyone is paying at least a little bit of taxes. The federal government spends way too much money, some if it they do not even have. Right now our treasury is printing money. This will cause inflation. Inflation will increase the costs of everyday goods effectivng everyone, but those with low incomes will be more effected.