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It excludes such items as untaxed social security and pension benefits, tax-exempt employee benefits, income earned within retirement accounts, and tax-exempt interest. Narrow measures of income understate taxpayers’ ability to pay taxes and overstate their ETRs [effective tax rates].  * Just Facts and two CPAs from Ceterus (a nationwide accounting firm) conducted analyses of Romney’s 2010 federal tax return that accounted for all measurable sources of income and federal taxes.
The analyses found: Last year my federal tax bill—the income tax I paid, as well as payroll taxes paid by me and on my behalf—was ,938,744. But what I paid was only 17.4 percent of my taxable income—and that’s actually a lower percentage than was paid by any of the other 20 people in our office.
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For many people, the more you make, the lower the rate you pay. * Based upon Mitt Romney’s 2010 federal tax return, the following organizations published articles claiming that Romney pays a lower federal tax rate than most Americans: Politi Fact, Fact Check.org, CBS News, and Agence France-Presse.    All of these articles failed to account for the burden of corporate income taxes, which fall more heavily on upper-income households. Both Politi Fact and Fact also: is a very narrow measure of income.
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