Posted on 10/18/2004 5:16:24 AM PDT by OESY
The Kerry campaign finally released Teresa Heinz Kerry's 2003 tax return, or rather two pages of it, late last Friday, and the story got buried next to the hardware-store ads....
...In 2003, Mrs. Kerry -- or Teresa Heinz, as she declared herself on her IRS 1040 form -- earned $5.07 million, hardly a surprising income for someone estimated to be worth nearly $1 billion.
The news is that $2.78 million of that income came in the form of tax-exempt interest from what the Kerry campaign's press release attributed to investments in "state, municipal and public entity bonds." ...On her remaining "taxable" income of $2.29 million, Mrs. Kerry paid $627,150 in taxes, for an overall average federal tax rate of only 12.4% on her $5.07 million in total income....
Mega-millionaires such as Mrs. Kerry who can invest in tax-shelters will be able to dodge the new higher two top marginal tax rates on dividends and other income that Senator Kerry is proposing for anyone making more than $200,000. The top rate would go back up to 39.6% from 35% -- or to nearly 41% if you include the phase-out of deductions that remains part of the tax code.
The people who won't be able to escape these higher rates are two-earner couples on mid-career salaries, or small-business owners who pay taxes as subchapter S companies at individual rates, or pensioners who've saved all their lives to build a nest egg and are now living off dividends. Mr. Kerry calls these people "the rich," but we know a lot of them who are decidedly middle-class and who certainly can't afford the five homes that the Kerrys own.
At the very least, Mrs. Kerry's tax returns are a screaming illustration of the need for reform to make the tax code simpler and fairer....
(Excerpt) Read more at online.wsj.com ...
Average federal income tax rate
Teresa Heinz Kerry, 2003 12.4%
All Taxpayers, 2001 14.2
Top 1.0%, 2001 27.5
Top 10%, 2001 21.4
Top 25%, 2001 18.1
Top 50%, 2001 15.9
Sources: Kerry campaign, Tax Foundation.
Bout time we hammered the rich to pay their fair share and get rid of these loopholes.
There is nothing scheming or priviledged about investing in tax free municipal bonds. Many people of modest means have these investments also.
There is no story here unless we want to be like the Democrats and inflame people based on sensational headlines.
But Kerry says that the rich should pay more than their fair share -- they should pay a higher percentage -- what a hypocrite!
bump
I am sure you know the other two lies.
There is a story here, and it's that the Mr. and Mrs. Kerry are guilty of the very thing they say is a 'sin' when it's done by others. I have no problem at all with how she chooses to reduce her tax liability, but don't have Mr. Kerry out there spinning BS about the tax system and using it to give others a black eye. The story here is that his rhetoric is designed specifically to inflame and it's not limited to this subject.
A nice FLAT TAX rate of 17% with NO LOOPHOLES anymore, should take care of that problem.
Kerry doesn't check the box. Only about .01% of MA taxpayers check the box.
Liberals want YOU to pay taxes -- not them.
Exactly, the last thing we need is to repeal the law giving investments in our local governments freedom from taxation, as the vacuum will be filled by you know who.
Those of us who are fiscally conservative should rejoice in the fact that her money is doing the same things all monies invested in the economy do, they EMPLOY, and ENABLE economic growth.
The only solution here is to attack investors with tax policy, and that simply won't be good for the economy.
Is there ANY stronger argument for a flat tax than this??????
Yup, Kerry already told Theresa he's from the Governemnt and there to help her. Bet he lied to her on the other item too.
What I had hoped would defined with this release was details about the 6.5mil mortgage loan that was used to revive Kerry's campaign in late 2003? As I remember, the jointly owned home was valued at about 6.5mil. A lender loaned the full value (6.5mil) to Kerry even though his wife owns half and files taxes seperately? Who is paying the interest on this loan? Would part of the loan have been a campaign contribution?
How about a nice, flat, tax rate of 10%? Fedgov should not ask for more than God.
An income of $5 mil off of a total wealth of over $1 billion is paltry.
Either they need to change who is handling their investments, or they are hiding a large portion of their income. I suspect they are hiding the vast majority of their income.
"There is nothing scheming or priviledged about investing in tax free municipal bonds. Many people of modest means have these investments also.
There is no story here unless we want to be like the Democrats and inflame people based on sensational headlines."
There is a story here. You see, I am not disturbed by Terayzah paying 12.4%. Frankly bless her pointy little head that she can reduce her tax burden.
However, saying that, my family is fortunate enough to be patrt of that 200k income rate and with all my reductions I will still pay over 20%.
That is the story.
OR Small Business Gross Receipts $200,000 less Car (mostly personal) Telephone, and a bunch of other personal items and
Gross Receipts $200,000 less "Business Expenses" $250,000 = $8,500 Earned Income Refund. While Drive, Rail Commute and work in a W2 Job - $200,000 gross, Tax $34,000.
Also we can add a VAT of 28%. Do you really think the pols will get rid of the Income Tax if they have a VAT. If there is a FLAT TAX will the Pols stop heading towards a VAT?
We all know the REAL answer. The Government needs $X to operate and they will get $X+Y through tax and inflation and debt. Case Closed.
Your income is earned income. Hers comes from tax-free investments. There's a difference.
It's my belief that all taxes are too high and anything over 10% is too much, but that's arguing about what the tax law should be, not what it actually is.
This represents less than 0.5% of her net worth. I find that very surprising.
The rich have many, many loopholes not available to us peons.
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