Another way to tell the story is by looking at average effective tax rates.
Mitt Romney's father, George Romney, paid an effective tax rate of nearly 37% in 1967.
The answer is that decisions are not made at the effective tax rate.
FORBES: Lower Taxes, Fewer Deductions: Are Romney and Ryan Dodging the Specifics?
Additionally, the effective tax rate in many countries can be significantly lower than the nominal rate.
FORBES: U.S. Corporations Act Responsibly in Reducing Foreign Taxes
But the U.S. effective tax rate is not light years away from Western Europe, Canada, or Australia.
FORBES: A Cross Country Comparison Of Corporate Income Taxes
To be sure, corporations use a variety of maneuvers and deductions to cut their effective tax burden.
Effective tax policy enacts tax cuts that will do the most to promote economic growth and prosperity.
FORBES: Mitt Romney's RINO Austerity Economics Make Him Least Electable
Your income from quarterly dividends would be taxed according to your effective tax rate, maxing out at 39.6%.
The result: the more of your income from gains and dividends, the lower your effective tax rate (ETR).
In the second quarter, the company said its "effective tax rate" was 10.5%, down from 19% in 2009.
At the same time, U.S.-based multinationals have lots of ways to drive down their effective tax rates.
FORBES: A New Way To Address The International Tax Mess For U.S. Companies
And the effective tax rate on this group is much higher, not lower, than any other income category.
The government has steadily dished out waivers to favoured industries: tourism pays an effective tax rate of 5%.
The year-over-year improvement was led by higher sales, lower associate incentive expense and a lower effective tax rate.
The truth is, though, that the proposed bill excludes countries with an effective tax rate of greater than 7%.
The only exception is the lowest-earners, whose effective tax rate is nearly zero, thanks to the earned income credit.
They ignore the fact that there is a difference between your marginal tax rate and your effective tax rate.
Excluding share-based compensation expense and related payroll tax expenses, the non-GAAP effective tax rate would have been approximately 41%.
However, most tools will use the marginal rate of your highest tax bracket rather than your effective tax rate.
The increase in earnings was due to top line growth and a lower effective tax rate, the company said.
It combines elements of passive investing with a simple but effective tax dodge.
If Helman made that comparison for ExxonMobil, he would have gotten an effective tax rate of roughly 13 percent.
The new report also shows the impact of the Bush-era tax cuts on the effective tax rate higher-income folks pay.
Thankfully, the Tax Policy Center has adjusted its effective tax rates for 2013 under the new Obama-Boehner tax law.
FORBES: The Average Tax Rate Top 20% Wealthy Will Pay In 2013 Is 28.1%
Simply put, an effective tax code from a revenue standpoint facilitates the very deficits that keep conservatives up at night.
If you are in the 25 percent tax bracket, your effective tax rate would be 62.5 percent (2.5 times 25 percent)!
FORBES: Even if Governor Romney's Tax Plan Could be Made to Add Up, It Wouldn't Make Any Sense
And for what it's worth, the European Commission accepts that it would be a much more effective tax if implemented everywhere.
For example, China provides tax holidays or rulings reducing the effective tax rate on certain corporate income to 15% or 20%.
FORBES: U.S. Corporations Act Responsibly in Reducing Foreign Taxes
Even with the tax compromise this effective tax rate will continue moving higher as a result of higher state and local taxes.
In 2009, Maryland-based financial consulting firm Quantria Strategies did a study on effective tax rates on companies for the Small Business Administration.
应用推荐