Cheney Gets 1.9 Million In Tax Refunds
Bush pays $187,768 in taxes; Cheney gets refund
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By Bloomberg News
April 14, 2006
President George W. Bush paid $187,768 in taxes on taxable income last year of $618,694, according to returns released today at the White House.
Vice President Dick Cheney and his wife, Lynne, reported owing $529,636 on taxable income of $1,961,157. The couple’s
total income in 2005 was $8,824,762, largely as a result of stock options Cheney received before stepping down as chairman
of Houston-based Halliburton Co., the world’s largest oilfield-services company, to run for vice president in 2000. The Cheneys donated $6,869,655 to charity in 2005 from the exercise of these stock options and from book royalties, the White House said.
The Cheneys had $2.47 million withheld from his salary and by their investment managers and are claiming a tax refund of
$1.94 million, according to their return, released three days before Monday’s filing deadline.
The Bushes’ income included his $400,000 presidential salary and $355,866 in taxable investment income from a blind
trust. Bush also overpaid his estimated taxes last year and is applying a $39,909 refund to his 2006 tax bill.
Just $13,758 of Bush’s investment income was taxed at the low 15 percent rate on dividends enacted in 2003. He paid a 35
percent rate on the rest — $313,486 in interest and $28,622 in dividends that don’t qualify for the low rate.
Tom Ochsenschlager, vice president of taxation for the American Institute of Certified Public Accounts in Washington,
said he was surprised to see so much of Bush’s investment income in forms that are taxed at the higher rate.
"He’s a very conservative guy, apparently not taking much risk in the stock market," Ochsenschlager said.
While Bush has no control over his blind trust, he would have been able to give his investment managers a general
investment model to follow, said Ochsenschlager. "I’m guessing he’s risk averse or the blind trust wouldn’t have that much of
interest."
Bush’s total income last year was $738,880. Most of the deductions he and his wife took were for $75,560 in donations to
charities and churches. Recipients included the American Red Cross-Hurricane 2005 Relief, the Salvation Army-Hurricane 2005 Relief, the Salvation Army Pakistan Earthquake Relief, Martha’s Table, the Archdiocese of New Orleans Catholic Charities, the Mississippi Food Network and the Federal Government’s Combined Federal Campaign, the White House said.
Their taxable income also was reduced by $26,172 in property taxes on their ranch in Crawford, Texas.
The president and his wife also claimed a $3,700 deduction for contributing to a health savings account. Bush’s 2007 budget proposes allowing Americans who buy high-deductible health insurance to save as much as $10,500 tax-free per family to cover medical expenses. That would double the 2005 limit.
Neither Bush nor Cheney paid the federal alternative minimum tax, and both claim residency in states — Texas and
Wyoming — that don’t have income taxes. The Cheneys’ Halliburton stock options were irrevocably set aside before he took office in 2001 for charity, the White House said in a statement. The 2005 donations were distributed to three charities: to benefit the Cardiothoracic Institute at
George Washington University hospital, where Cheney has been treated for his heart ailment, the University of Wyoming and
Capital Partners for Education, a program for low-income high school students in Washington.
