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.