Is there some secret tax rate for entertainers the rest of us don’t know about? Appearing last night on CNN’s “Piers Morgan Tonight,” comedian and club owner Jon Lovitz claimed he was paying 50 percent or more in tax. Tonight Kirstie Alley claims a similar tax rate and wonders what she’s doing wrong.
Though it’s probably a question best left for a tax attorney, Alley’s Twitter followers did their best to explain.
@kirstiealley its because he pays taxes on investment income not earned income.
— Mo (@MartitaO) August 18, 2012
https://twitter.com/briancyrart/status/236965937885106176
. @kirstiealley Besides, Mitts $ is investments which (under Obama) is only taxed @ 13% by law… Our income is taxed under different laws.
— ?? Nisey ?? (@Nisey72) August 18, 2012
@kirstiealley it depends on whether you are paying Income or Capital Gains tax. Which do you pay? there's your answer
— Leslie McLeod, CPhT (@snugglebunnie34) August 18, 2012
@kirstiealley his money comes from retirement fund and is taxed differently. Also when u fig in charity contibutions it is about double
— TinaZak (@HelloGetOverIt) August 19, 2012
@kirstiealley Its like Warren Buffet's secretary who pays a higher percentage than he does. It would seem like it should be the other way.
— Cynthia Beattie (@swissmissled) August 19, 2012
We’re not sure what combination of income and investments makes up Alley’s adjusted gross income. Perhaps if she’d release her tax returns we’d have a better idea.
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But wait a minute… we thought Hollywood types wanted to pay more. Even Morgan was so unfazed by Lovitz’s claim of a 50 percent tax rate that he didn’t think to question it, suggesting only that it was Lovitz’s “moral duty” to pay more to help those suffering under the current economy. Alley’s followers seemed to disagree with that notion, though. Half is too much. Don’t rich people have accountants to find loopholes for them?
@kirstiealley Since the highest income tax rate for 2012 was 35%, I would be inclined to run, not walk, to a new CPA:)
— Amanda Simpson (@mandamooray) August 18, 2012
https://twitter.com/dpwoods5/status/236968012853424128
@kirstiealley if you are paying 50% you need a new accountant.
— little ms fancypants (@LilMsFancyPants) August 18, 2012
https://twitter.com/SPUNKR138/status/236972458668867584
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