Your effective tax rate is simply your tax paid divided by your gross income. That is what you paid divided by what you made.
ie: You paid $20,000 and your gross income was $120,000 your EFFECTIVE tax rate is ~16%
Your "tax bracket" is not your effective tax.
The issue I have with the story that came out about Obama's secretary is that they used his Effective tax rate and her Tax Bracket when they reported the story. Apples and Oranges...
Last edited by Chiefgator; 04-17-12 at 09:13 PM.
As a dreamer of dreams and a travellin' man, I have chalked up many a mile.
Read dozens of books about heroes and crooks and I've learned much from both of their styles!
If it sounds like Marx and acts like Stalin...it must be Obama