Earlier this week we linked to Tim Lambert’s find of a Tech Central Station Columnist in desperate need of remedial science (and math) tutoring. (Which followed our own find of a math challenged rant.) Always being on the lookout for further examples showing that “our children isn’t learning,” we are happy to offer you last weekend’s NewsMax email:
Kerry’s Wife Pays Less Taxes Than Median Family
Say what?
For a long time Steve Forbes has been advocating a flat tax. He says this is the only way to make sure the rich pay their fair share of taxes due Uncle Sam.
Now we know why Steve Forbes wants the flat tax. Wealthy individuals such as Teresa Heinz Kerry pay less in taxes, proportionately, than does the median U.S. family.
Let’s see where this takes us:
According to HUD, the median family income for the U.S. for 2003 was $56,500. After applying the standard deduction of $9,500 for married filing jointly we end up with a taxable income of $47,000. This puts the average [do they know average isn’t the same as median? -S,N!] family in the 15 percent tax bracket. Kerry’s wife, using tax shelters, managed to pay only an effective federal tax rate of 11.5 percent, compared with the top federal income tax rate of 35 percent. She paid $587,000 [federal tax only] on an income of $5.1M.
That bitch, this makes us so mad! Except, of course, that the whole thing is bullshit. Let’s go to the video tape:
According to a statement, she had a gross taxable income of $2,338,000, primarily from dividends and interest. She also earned $2,777,000 in tax-exempt interest income from state, municipal and other bonds.
Ah, half of that was tax free interest income. If NewsMax readers were better informed, they would know that flat tax advocates believe that all “unearned income” (i.e. interest, capital gains, etc…) should not be taxed at the federal level:
Individuals would no longer be taxed on their interest, dividends, capital gains and other “unearned” income.
Teresa Heinz Kerry’s tax bill of $587,000 on a taxable income of $2,338,000 constitutes an effective federal tax rate of approximately 26%, a figure that typical for the average taxpayer with an income between 2 and 5 million dollars, who paid 29% in taxes. The flat tax would constitute a huge tax saving for Mrs. Heinz Kerry (and other wealthy Americans,) and leave the US Treasury with significantly lower tax revenue. Figuring this out, however, would obviously require a longer attention span than your typical NewsMax editors (or readers.) [As for John Kerry’s tax bill, it was just under 23% of his adjusted gross income.]
Bonus points: The average tax return for married persons filing jointly with an income between $40,000 and $50,000 showed $3,432 of income tax paid, an effective tax rate that is significantly less than 10% of their income.