NCPA - National Center for Policy Analysis

LOOPHOLES LOWER TAX BILLS FOR THE KERRYS

October 25, 2004

Maybe the Kerrys are right: The rich don't pay their fair share of taxes. According to Investor's Business Daily, Theresa Heinz Kerry paid only 12.5 percent of her 2003 income in taxes. Presumably due to legal loopholes that good tax planners use:

  • Heinz-Kerry's reported total income was $5,072,533; about $2.8 million of it was invested in tax-free municipal bonds.
  • She paid $628,401 in taxes, which amounts to 12.4 percent of her gross income; the average middle class family pays more than 20 percent in income tax.
  • In contrast, President and Mrs. Bush paid $227,490 on a gross income of $822,126 -- a rate of 27.7 percent.

Moreover, Heinz-Kerry released only the first two pages of the tax return, with no further details on her charitable contributions or the $267,541 she itemized.

Additionally, while John Kerry has accused CEOs of being traitors to America by outsourcing jobs, he has little to say about the Heinz family fortune built in part by foreign branches of the Heinz Corporation and their outsourcing practices.

Meanwhile, Kerry proposes raising taxes on the rich, which he defines as those making over $200,000 per year.

Source: Issues & Insights, "Teresa's Taxes: Let Them Eat Ketchup," Investor's Business Daily, October 19, 2004.

 

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