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extelecom

01/25/04 12:46 PM

#196900 RE: James T Kirk #196897

Kirk, Go look at the Schedule D and look on the back:
http://www.irs.gov/pub/irs-fill/f1040sd.pdf
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Zeev Hed

01/25/04 12:50 PM

#196901 RE: James T Kirk #196897

The majority of Bill Gates "earning" is selling stock in MSFT which he held fro more than 5 years. Such cap gains are taxed at 5% (If sold after May 2003). He also has quite a lot of QSB gains half of which under exclusion 1202 are not even "reported" (no complaints, I get that too). I don't do his taxes, but I would not worry about him being "overtaxed". My point was that my wife (not I) who is an independent businesswoman, pays the marginal 35% plus 15% in "payroll taxes" this is a tax rate of 50%, while Gates (and I as well) pay a much lower tax rate. Most of the middle class with a marginal rate of let say 25% (family income or AGI under $115,000) actually pay a marginal tax rate of around 40%.