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April 13, 2007
President's Tax Return Shows 29 Percent Effective Tax Rate
by Dustin Stamper

Full Text Published by Tax Analysts®

Document originally published in Tax Notes Today
on April 13, 2007.


President Bush paid taxes at an effective rate of 29 percent in 2006, while wealthier Vice President Dick Cheney paid at a rate of just 26 percent.

The White House on April 13 released Forms 1040 for the president and the vice president for tax year 2006.

Filing jointly, the president and Mrs. Bush reported a taxable income of $642,905, and $186,378 in federal income taxes due. The Bushes claimed $618,694 in income a year earlier, and like last year, it comprised the president's salary and earnings from assets held in trusts.

The Bushes paid $205,738 in taxes throughout the year and elected to apply their overpayment to 2007 taxes instead of receiving a $19,361 refund.

The return shows the Bushes claimed $120,696 in itemized deductions, but the White House did not provide any accompanying schedules. According to a White House press release, the couple's deductions included $78,100 donated to charity.

The Bushes also claimed a $331 foreign tax credit and the standard $40 amount for their telephone excise tax refund.

The vice president and Mrs. Cheney paid $413,326 in federal taxes on taxable income of $1,614,862. The Cheneys' income came from the vice president's $208,575 salary, a $27,500 pension from Union Pacific Corporation, royalties for an upcoming book from Mrs. Cheney, and nearly $700,000 in dividends.

The Cheneys claimed a foreign tax credit of $26,112 and also elected to take the standard $40 telephone excise tax refund.

The Cheneys paid $464,789 in taxes before filing, and they decided to apply their $51,463 overpayment to their 2007 estimated taxes.

After donating $6.9 million to charity in 2005 from exercised stock options, the Cheneys in 2006 gave $104,425, according to the press office.

The Bush and Cheney tax returns are available on Tax Analysts' Web site through the "Presidential Tax Returns" link at http://www.taxhistory.org.


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