Among small companies in the DFA small-cap fund, effective rates were more uniform, averaging 34 percent.
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Other wealthy individuals have seen a dramatic reduction in their effective rates during those years too.
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And its complexity is regressive, since only the rich can afford the best tax attorneys to reduce their effective rates.
Large companies pay lower effective rates because they shelter profits overseas and hire armies of tax experts to avoid taxes.
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Thanks to seemingly endemic inflation, when investors realized gains on the sale of their assets, they paid effective rates that were considerably higher than the statutory rates.
Joe Biden should heed the call of our United States Chamber of Commerce to lower corporate tax rates (and, yes, effective rates as well) to help restore our jobs market.
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At the same time, it includes so many exemptions, giveaways and rebates that those who can game the system pay effective rates that are too low, benefiting their accountants and lawyers but leaving government short of cash.
That plan would allow Republicans to say they did not back down in their opposition to raising marginal tax rates and Democrats to say they prevailed by increasing effective tax rates on the rich.
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These rates are effective as of January 1, 2012 and reflect very little in the way of movement from those rates which were effective as of July 1, 2011 (a rare mid-year change).
Another way to tell the story is by looking at average effective tax rates.
At the same time, U.S.-based multinationals have lots of ways to drive down their effective tax rates.
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In 2009, Maryland-based financial consulting firm Quantria Strategies did a study on effective tax rates on companies for the Small Business Administration.
Doves are happy that effective interest rates are nearer to zero.
Taxpayers and entrepreneurs still have the freedom to lower effective tax rates by moving to one of the nine states that do not tax personal income.
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Effective tax rates can also be affective for analyzing corporate taxes because the statutory rate does not reflect who ultimately bears the burden of the tax.
It is rather twofold: the effective tax rates paid by recipients of US corporate dividends will be higher than those paid on other forms of income.
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The foreign affiliates of U.S. companies reduce their effective tax rates by reporting more of their aggregate net income in the Netherlands (13%), Luxembourg (8%), and Bermuda (8%).
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According to first-quarter 2011 quarterly reports, effective tax rates among the giants varied from 53 percent at General Electric ( GE) to 13 percent at Microsoft ( MSFT).
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The past thirty years has been a continuous deregulation of our economy and effective tax rates as a low as they have been since before World War Two.
"Reports of lower effective tax rates appear to arrive at their figures by running together the profits earned by group companies in Ireland and in other jurisdictions, " Kenny said.
"In emerging economies with large and growing current account surpluses, especially China, it is desirable that their effective exchange rates move so that necessary adjustments can occur, " the finance chiefs said.
Thirteen of the 17 countries with enough observations to compute annual effective tax rates in both 2009 and 1999 experienced a reduction in their tax rate with a median decline of 5 percentage points.
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The tax cuts he wants in exchange hinge on a sharp reduction in the effective tax rates paid by Japanese corporations, along with cuts in the inheritance, gift and property taxes that combine to distort the property market.
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As you might expect, giant companies generally pay lower effective tax rates (income before taxes divided by taxes paid) than smaller companies, although both groups are subject to the same statutory corporate tax rate that tops out at 37 percent.
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Certainly, trillion plus dollar annual deficits, the extension of the Bush tax cuts through 2012, and public disclosure of personal tax information (highlighting low effective tax rates) by Warren Buffett last year and Mitt Romney this year has made public an issue usually limited to discussion among tax academics.
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Our effective tax rates were lower than the U.S. federal statutory rate primarily due to earnings taxed at lower rates in foreign jurisdictions resulting from producing and distributing our products and services through our foreign regional operations centers in Ireland, Singapore, and Puerto Rico, which have lower income tax rates.
For people with very high incomes, the rise in marginal tax rates would be smaller, but to the extent that itemized deductions rise with income, the loss of those itemized deductions means that the cut in marginal effective tax rates on high income people will be less than the cut in statutory rates.
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In 2003, taxpayers faced a slew of changes, including new capital gains rates effective mid-year and a new lower rate on so-called qualified dividends.
People trying to raise themselves out of poverty by earning more can face effective marginal tax rates (including phase-outs of various government programs) that exceed 100%.
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As shown in the chart below, effective Federal tax rates for low earners have dropped to zero over the last decade, even after including FICA taxes.
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