April 11, 2003
Vice President Dick Cheney and Mrs. Cheney Release 2002 Income Tax Return
FOR MORE INFORMATION CONTACT
Terrence O'Donnell
of Williams & Connolly LLP
at (202) 434-5678
Vice President and Mrs. Cheney filed their federal income tax
return for 2002 today.
The income tax return shows that the Cheneys owe federal taxes for
2002 of $341,114 on a taxable income of $945,051. During the course
of 2002 the Cheneys paid $436,972 in taxes through withholding
and estimated tax payments. The Cheneys elected to apply $20,000 of
the resulting $95,858 tax overpayment to their 2003 estimated tax
payments.
The wage and salary income reported on the tax return includes
$190,134 in government salary for the Vice President. In
addition, the tax return reports the payment of deferred compensation
from Halliburton Company, in the amount of $162,392. In December
1998, the Vice President elected to defer compensation earned in
calendar year 1999 for his services as chief executive officer of
Halliburton. This amount is to be paid in fixed annual
installments (with interest) in the five years after the Vice
President's retirement from Halliburton. That election to defer
income became final and unalterable before Mr. Cheney left
Halliburton. The amount of deferred compensation received by the Vice
President is fixed and is not affected by Halliburton's current
economic performance or earnings in any way. It would not be
affected even if Halliburton were to become unable to make the deferred
compensation payments since the Vice President, before assuming
office, purchased an insurance policy that guarantees he will receive
the amount owed to him.
The tax return reports Mrs. Cheney's wage and salary income
from her continuing work at the American Enterprise Institute,
as well as compensation from Reader's Digest and American Express
Mutual Funds (Board Services Corporation) on whose boards of directors
she served in 2002. The Cheneys donated $121,983 to charity in 2002,
primarily from a donation of Mrs. Cheney's royalties from Simon &
Schuster on her book America: A Patriotic Primer and her
forthcoming book tentatively titled A is for Abigail.
The Cheneys terminated the Cheney Defined Benefit Pension Plan
in 2002. Upon the Plan's termination, the Vice President and Mrs.
Cheney each made a tax-free rollover of their respective shares
of the Plan to separate Individual Retirement Accounts. The Plan was
entirely funded over the past several years by contributions from
self-employment income. The Vice President also made a tax-free
rollover of the remaining balance in his 401(k) plan at Halliburton
Company to his IRA, in the amount of $2,141.
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