Effective Tax Rate for Candidates?

Republicans vying for the presidential nomination have released their tax returns showing their effective tax rates. The effective tax rate is the percentage of taxable income that was paid in taxes. In comparison, the marginal rates of individuals are 10%, 15%, 25%, 28%, 33%, and 35%.

• Mitt Romney paid an effective tax rate of about 14% on $21.4 million of taxable income in 2010.
• Newt Gingrich paid an effective tax rate of about 32% on $3.14 million of taxable income in 2010.

In comparison, President Obama last year reported that his effective tax rate was about 26% on taxable income of $1.7 million, and Vice President Biden had an effective tax rate of 23% on taxable income of $379,000.

What is your effective tax rate? Divide your taxes paid by taxable income to see. For example, if your tax payments totaled $20,000 and your taxable income was $100,000, your effective tax rate would be 20%.