Rapunzel52
Well-known member
- Joined
- Dec 31, 2011
- Messages
- 525
- Reaction score
- 233
- Location
- The Great Midwest
- Gender
- Female
- Political Leaning
- Conservative
I do not understand the second part of your comment. What was much less?
Your effective tax rate is simply your tax paid divided by your gross income. That is what you paid divided by what you paid.
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...
Warren really doesn't pay income tax. He already paid income tax on the money he's investing quite a while ago...he's basically only paying a dividend tax... or capital gains.
Of course he's for the Buffett rule, it doesn't effect him.