48 Days Until the Election- Taxes at a Glance

We’ve heard a lot about tax returns from both candidates, as well as the folks at the Cherokee Phoenix.  The Phoenix put those returns online last week, but as far was we can tell, no one has actually analyzed and look at them.  So, here are the face-value facts of those returns. 

The joint return for Smith and his wife for 2009 can be found online here. 

The Smiths report an adjusted gross income of $133,575.   Included in that number are:  $120,232 in wages, salaries and tips; $17 in taxable interest; $1,462 in tax refunds; $523 in business income; $1000 in IRA distributions; $10,341 in pensions and annuities; and $6 in rental real estate, royalties, partnerships, S corporations, trusts, etc.  To reduce their total income, they claim $7 in self-employment taxes.

The $523 in business income is listed as coming to Chadwick Smith for work as a lawyer/consultant.

Smith’s annual salary as Principal Chief, according to the Cherokee Phoenix, is $112,445.

The joint return for Baker and his wife for 2010 can be found online here.

The Bakers report an adjusted gross income of $41,094.  Included in that number are:  $21,148 in wages, salary and tips, taxable interest of $8,592, dividends of $6,462, and $4,961 in rental real estate, royalties, partnerships, S corporations, trusts, etc. To reduce their total income, they report a business loss of $40,992, IRA contributions of $6,000 and self-employment taxes of $1,182.

The business loss is made up of two separate items:  A loss  (-$57,722) on Baker’s Furniture, which lists Bill J. Baker as proprietor, and a profit  (+$16,730 ) on a property management business, which lists Sherry Baker as proprietor. 

Baker’s annual salary as a council member in 2010 was $36,450, according to the Cherokee Phoenix.

The reason the total salaries for Baker and his wife are lower than his reported salary is unknown, but it may be that he has expenses removed from his salary pre-tax for things like retirement or health care. 

We certainly do not purport to be tax experts; these are just the facts easily seen on both candidates' tax returns. As always, feedback is welcomed. And if you have anything you want us to look into and find the truth, leave a comment or email us at cherokeetruth@gmail.com.