Tuesday, April 17, 2007

Did you pay more in taxes than Dick Cheney did?

In light of the never-ending calls for a flat tax I thought I'd run the numbers on two of the wealthiest people in the country.

According to their income tax returns for 2006:

Dick Cheney paid $413,326 in taxes on $1,809,296 total income (22.845%).
George Bush paid $186,378 in taxes on $765,801 total income (24.337%).

Bush comes out a bit behind, despite earning significantly less than Cheney, but maybe he just needs a better accountant.

Of course that's just income tax, the only tax Republicans typically want to flatten. We also pay Social Security and Medicare taxes. Medicare is a simple 1.45% of gross earnings. OASDI is 6.2% up to a maximum tax of $6045 per employed spouse. Assuming both spouses are paying into Social Security, that adds 0.664% for the Cheney's and 1.578% for the Bush's.

Income tax + Medicare + OASDI = effective federal tax rate

Cheney: 22.845 + 1.45 + 0.664 = 24.959%
Bush : 24.337 + 1.45 + 1.578 = 27.365%

I came in at about 24.6%. My guess is most of you did too.

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