102 Percent Tax Rate??!! (not exactly...)

This piece by James Stewart of the NYT about taxpayer James Ross has an attention-grabbing headline ("At 102%, His Tax Rate Takes the Cake"), but midway through the piece we learn that Ross's effective tax rate as a percentage of Adjusted Gross Income is a mere 20 percent.  We then learn that Ross had an AGI in excess of $1 million, though by how much we are not told.  So it would appear that Ross's various itemized deductions (e.g., home mortgage interest, state and local taxes, charitable contributions) must be at least $800,000, such that his "taxable income" is in the neighborhood of $200,000.  There are lots of reasons--based on principles of sound tax policy--for eliminating many of the itemized deductions found in the federal income tax.  Now we can add to that list the fact that "taxable income" opens up new vistas for exaggerating effective tax burdens. There's a legitimate debate (among folks not involved in journalism or politics) about what definition of "income" best captures true economic income-- but the concept of "taxable income" found in 26 U.S.C. §63 is not in the running.

Tax Strategies for High Net Worth Individualz

Tax entertainment from the Daily Show here.

More Fun with Candidate Tax Returns

from the New York Times website

The (Long Awaited) Romney Tax Return

The 2010 return is here with lots of links to news coverage on Paul Caron's taxprof blog here.

NYT's David Leonhardt on U.S. tax rates

Interesting piece this afternoon by David Leonhardt in the New York Times, titled "Why Americans Think the Tax Rate is High and Why They're Wrong."