Cheney Receiving Katrina Tax Benefits For Non-Katrina Donations...

[gatorboy]

http://taxprof.typepad.com/taxprof_blog/2006/04/kirsch_cheney_t.html

Kirsch: Cheney Tax Return Shows Katrina Tax Benefits for Non-Katrina Charitable Contributions

It appears that the VP is a major beneficiary of the Hurricane Katrina tax relief act. In particular, he claimed $6.8 million of charitable deductions, which is 77% of his AGI -- well in excess of the 50% limitation that would have applied absent the Katrina legislation. The press release indicates that the charitable contribution reflects the amount of net proceeds from an independent administrator's exercise of the VP's Halliburton options -- apparently, the VP had agreed back in 2001 that he would donate the net proceeds from the options to charities once they were exercised.

The press release seems to confirm, at least implicitly, the VP's efforts to take advantage of the Katrina legislation -- it mentions that the Cheneys wrote a personal check of $2.3 million to the administrator in December in order to "maximize the charitable gifts in 2005." Admittedly, I don't know anything about the transactions beyond the info in the press release, but my gut reaction is that the personal check was given in order to make sure the independent administrator had sufficient liquid assets to pay all of the promised charitable contributions before the 50% limit returned on 1/1/06.

Despite the importance of the Katrina legislation to his tax return, it looks like none of the charitable contributions actually went to Katrina-related charities (the press release lists the 3 charitable recipients, all of which were designated in the original 2001 gift agreement). While there's nothing inappropriate about that from a legal perspective, it does demonstrate how the legislation, which was sold to the public as providing relief to Katrina victims, provided significant tax benefits to the VP (and potentially other wealthy individuals) in situations that have nothing to do with Hurricane Katrina.

[babylonsister]

1. The word 'scumbucket' comes to mind. nt

[rzemanfl]

4. My mind missed the bucket part. n/t

[Name removed]

2. Deleted sub-thread

Sub-thread removed by moderator. Click here to review the message board rules.

[katinmn]

3. Uggh. Making money off others' misfortune. Makes me

:puke:

I wonder if our country can ever be redeemed.

[Ian David]

5. Barbara Bush Katrina Donation Earmarked For Son Neil's Software Company

Barbara Bush Katrina Donation Earmarked For Son Neil's Software Company
The Houston Chronicle | CYNTHIA LEONOR GARZA | Posted March 23, 2006 01:08 PM

Former first lady Barbara Bush donated an undisclosed amount of money to the Bush-Clinton Katrina Fund with specific instructions that the money be spent with an educational software company owned by her son Neil.

Since then, the Ignite Learning program has been given to eight area schools that took in substantial numbers of Hurricane Katrina evacuees.


More:
http://chron.com/cs/CDA/printstory.mpl/headline/metro/3742329

[Gman]

6. This slimeball doesn't miss one opportunity

not one.

[SammyWinstonJack]

7. SCUM! Big Time!

:grr:

[Beaverhausen]

8. Is he going to get away with this?

:mad:

[gatorboy]

9. Probably.

These people have this way of getting away with everything. :mad:

[DuckBurp]

10. Not only that, but I believe he donated stock options that

had appreciated in value, allowing him to claim deductions for which he did not even have to declare as income. A legitimate, but inequitable, quirk of the tax law.

[young_at_heart]

11. His arrogance knows no bounds!

Just when you think it can't get any worse.......

[lostnfound]

12. Would love to know what charities these actually were.

How much do you want to bet that the ones that they mention in the press release aren't the biggest recipients.

[alphafemale]

13. He probably donated in a way that profitted himself. Like Babs did.

Wouldn't surprise me in the least.

[Old Smokey]

14. such a greedy fuckin pig

[Marnieworld]

15. Remember when something like this would have been a scandal

If it was a Democrat there would be graphics in news departments created by now, theme music commisioned, and breathless chatter about it on all the news channels. Now? Crickets. Of course this little thing pales in comparison with their war crimes which also have no graphics created that I'm aware of. In my world there would have been a symphony composed by now just about Bush's "signing statements." :grr: :mad:

[ClintonTyree]

19. It will be a scandal again....

as soon as they can find a Democrat that did it. O'Lielly will be calling for the Democrat's resignation, there will be an independent investigation into the Democrat's actions. Just wait a while....they'll find someone.

[Canuckistanian]

16. How much money is enough?

No, seriously, how much money will it take to satisfy them?

It would probably be better for all involved if they named a price and we cut a check for them and let them go away.

This is nothing more than a giant kleptocracy, and Cheney the absolute Kleptocrat.

[stevietheman]

17. Something can be legal and wildly unethical at the same time. n/t

n/t

[KAT119]

18. In a WH known for it's incalcuable addiction to Power & Greed Cheney rules

[HippieCowgirl]

20. That legislation provided great tax benefits to ME this year

Of course, I don't have anything on the scale of Cheney's charitable giving, but the fact that I could write off a greater percentage of my charitable contributions that I gave after the September-whaverth deadline was a great help on my taxes.

I gave to Habitat for Humanity's katrina fund, but also sent money to PBS, Planned Parenthood, Doctors without Borders, The Women's Shelter (and on and on) and all of it applied. What Cheney did with his taxes is piss in a bucket when compared to the average folks who took advantage of that tax credit to pour money into the coffers of charities who could really use it for good in the world. All the outrage in the world isn't going to get him to stop cheating us or lying or warmongering.