On the campaign trail, Alaska Gov. Sarah Palin likes to mock Sen. Biden’s comment that paying higher taxes is patriotic. (Actually, what Biden said is paying
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“„There is no serious debate (at least, none that has been brought to our attention) about the fact that at least the amounts paid for the children’s travel — $24,728.83 in 2007, according to the Washington Post — are taxable. The campaign’s tax lawyer has got at least that much of the law, and perhaps more, wrong. … The Palins, who had their tax returns done by HR Block, simply got it wrong. And the fact that the state payroll office got it wrong, too, doesn’t erase the Palins’ unpaid tax liability.
“„The release of an opinion letter by attorney Roger M. Olsen dated September 30, 2008, has stirred up the pot once again about the accuracy of Sarah and Todd Palin’s 2006 and 2007 tax returns. Not only that, but Mr. Olsen’s letter raises a couple of new issues.
“„This paper focuses on five problems: three raised in the tax returns and two new ones raised by Mr. Olsen’s letter. Here’s a summary of the five problems and my conclusions, for those who want to cut to the chase. My analysis will follow.
“„[T]he Palins should have reported as taxable income, at the very least, the $24,728.83 of travel reimbursements for the children. That income would have been taxable to them at somewhere between 25 and 28 percent, and so they are in the hole to the government for more than $6,000, plus interest since at least April 15 at the rate of between 5 and 6 percent a year. They should file an amended return and pay the resulting tax and the interest. And if somebody at the IRS took a good, hard look at the payments for Sarah and Todd, we would bet that there would be some additional tax due there as well.