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Post by midwestfan on Apr 13, 2004 21:16:58 GMT -5
** I am using this merely as an example.** President Bush and VP Cheney are each paying about 20% in taxes, is that enough? I hear people say all the time that the rich don't pay enough in taxes, so I have to ask the question ... how much is enough? Is it 30% , 40% or 50%? Who gets to make that decision, someone who pays no taxes or someone who only pays 5-10%? Here is the article if you want to take a look. apnews.myway.com/article/20040413/D81U1T780.html |
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Post by Gorf on Apr 14, 2004 0:00:08 GMT -5
The article says the Bushes paied 28% and the Cheneys 20% respectively.
That is, howver, based on their adjusted gross income.
The article doesn't mention what the actual total income is for either to know what the percentage would be based on that figure.
The interesting thing is that the Cheneys reported slightly less income but paid a significant'y lower percentage of their AGI in taxes - dropping from 29% for 2002 to 20% for 2003.
The article does list the total itemized deductions for both - with the Chenerys having ~$450,000 - ~$320,000 of that going to charities - or ~120,000 in non-charitable deductions.
Itemized deductions in only one of a number of ways to reduce the one's AGI though.
Just saying the Cheneys paid 20% of their AGI in taxes doesn't really give you the whole picture.
After the tax cuts for 2003 the top bracket is 35%, and with the Cheneys reported an AGI of $1.3 million you'd think they would be closer to that percentage yet they're 9% less than the Bushes who claimed only 60% as much for their AGI.
Dropping from 29% to 20% this year on $1.3 million saved the Cheneys over $100,000 in taxes for 2003.
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Post by Gorf on Apr 14, 2004 0:06:39 GMT -5
Personally, I'd rather see a flat(ter) tax rate with few (if any) loopholes for getting around paying taxes.
With exceptions for those with very low incomes.
Either that or do away with individual and corporate income taxes and migrate it over to a consumption based tax system.
Individuals and companies would pay taxes based on what they spend rather than what they earn.
Anything that is done to simplify the tax system can make a huge difference in the amount of money retained by the IRS since their last reports showed it costs them in excess of 50% of the tax dollars owed in the processes of collecting it.
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Post by FreeBall on Apr 14, 2004 6:33:55 GMT -5
One thing that I did not see in the released information was any indication of the amount of tax exempt income on each of the returns. If the Bush's and Cheney's are like typical wealthy Americans, they hold significant positions in municipal bonds that create income that is not taxed at the federal level.
Tax exempt income is listed on the return, but does not get added into the gross income and taxable income calculations. My point is that the actual amount of income earned by each couple could be significantly higher than the gross and taxable income figures that were released.
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