Comparison of Forbes' Possible Tax Liabilty Under the Current System and 17% Flat Tax

We took the financial disclosure forms filed by Forbes with the Federal Election Commission and compiled the lowest numbers available in every income category and annualized them. We then provided Clovis Sanford, a certified public accountant who heads Sanford and Associates in Dallas, Texas. Mr. Sanford then ran a tax return based only on the information provided by the Center for Public Integrity.

Steve Forbes' Estimated 1995 Tax Rate

INCOME (annualized assumption) Compensation 813,373.00 Dividends & Interest 238,222.00 Honoraria/Business Income 96,684.00 Rent 30,000.00 Farm 5,474.00 Total $1,183,753.00 ADJUSTMENTS TO INCOME Deductions for self-employment tax 1,295.00 Total adjustments 1,295.00 Adjusted gross income $1,182,458.00 ITEMIZED DEDUCTIONS Mortgage interest 101,444.00 Investment interest 12,892.00 Contributions at 30% of income 342,306.00 Total itemized deductions 456,642.00 Overall itemized deductions limitation (32,120.00) Total itemized deductions $424,522.00 TAX COMPUTATION Taxable income 757,936.00 Tax 275,831.00 Self-employment tax 2,589.00 Total tax $278,420.00

Steve Forbes' Estimated Rates Under 17% Flat Tax

Income 910,057.00 Personal Allowance (26,000.00) Personal Allowance Dependent* (5,000.00) Taxable Wages 897,057.00 Total Tax $149,440.00 *An allowance of $5,000 can be claimed for each dependent child. This assumes only one dependent child, although Forbes has five daughters aged "between 7 and 22." Despite repeated calls, the Forbes campaign would not tell the Center for Public Integrity how many dependent children he has. We are counting only the seven-year old.

Net Tax Savings to Steve Forbes: $128,980.00

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