For Immediate Release
Office of the Press Secretary
April 13, 2001
Vice President and Mrs. Cheney Release 2000 Income Tax Return
FOR MORE INFORMATION CONTACT
Terrence O'Donnell
of Williams & Connolly LLP
(202) 434-5678
Vice President and Mrs. Cheney
Release 2000 Income Tax Return
Private attorneys for Vice President Dick Cheney and Mrs. Cheney
announced today that the Vice President and Mrs. Cheney filed their
federal income tax return for 2000 today.
The income tax return shows that for 2000, the Cheneys owe federal
taxes of $14,295,058 on an adjusted gross income of
$36,086,635. $9,644,701 had been previously withheld or
otherwise paid, and the Cheneys paid the remaining balance due of
$4,650,357 with their filing.
Included in the wage and salary income reported on the tax return is
$806,332 in salary and $4,333,500 in deferred compensation and bonuses
from Halliburton Company, where Mr. Cheney served as chief executive
officer until he resigned on August 16, 2000. As previously
reported in Halliburton's proxy statement, Mr. Cheney received a cash
bonus of $1,451,398 from Halliburton in January of this year, which
will be included in the 2001 tax return. The overwhelming
balance of the remaining wage and salary income reported on the
Cheneys' tax return was from the exercise of stock options and from the
sale of restricted stock of Halliburton that Mr. Cheney received as
compensation. Mr. Cheney had earned these options and
restricted shares over the course of a number of years pursuant to
executive compensation plans in place before Mr. Cheney was nominated.
The Vice President and Mrs. Cheney reported $1,943,948 in short-term
capital losses. The bulk of these losses were incurred
because the Vice President sold stocks that he and Mrs. Cheney owned in
order to avoid conflicts of interest. Not all of those
short-term losses are deductible against 2000
income. $1,117,439 of these losses are not useable in 2000
and have to be carried forward to future tax years. The
Cheneys also reported $823,509 in long-term capital gains.
In addition to $41,646 contributed by the Cheneys to charities, they
gifted the benefit of all their remaining stock options, having a value
of approximately $7,800,000, to three charities. The
charities chosen by the Cheneys are Capital Partners for Education,
which provides educational assistance to low-income high school-age
children in the Washington, D.C. area, George Washington University
Medical Faculty Associates, also in Washington, D.C., and the
University of Wyoming in their home state. Because the options
themselves were not transferable, the gift was made through a gift
administration agreement. The gift administrator is to
exercise the options and donate all proceeds, after payment of taxes
payable because of the exercise of the options, to the
charities. The options contributed were certain options in
Halliburton Company and other companies that the Cheneys had received
as compensation for employment or for service on boards of
directors. The estimated value of the options is reached by
using valuation methods approved by the Internal Revenue Service for
valuing options when given away as gifts.
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