I filed my federal income tax return today and paid an “effective” rate, the actual percentage of my taxable income, of 13.46 percent.
That percentage reminded me of presidential nominee Mitt Romney’s statement during the 2012 campaign: “I never paid less than 13 percent,” he boasted in reference to his effective tax rates over the previous decade. “I paid taxes every single year,” he added proudly.
So it appears Mr. Romney and I have something in common: Our effective tax rates are similar. The difference in income, however, is gigantic. My annual income is exceeded by his tens of millions in less than two days. As the sun sets on the second day of January, his income already exceeds what I can anticipate for the rest of the year.
Our supposed “progressive” income tax, one in which those of higher income pay a higher percentage of taxes, is more myth than reality. And for those who propose a “flat rate” income tax: Relax, you’ve already got it.