Why is Obama's tax rate so low?
The president and his wife report an effective tax rate of 18.4% for 2012.
Even though the president's income has slowed, you'd expect his tax rate to be fairly high. Yet for 2012, the Obamas saw an effective tax rate of just 18.4%. The couple paid about $112,000 in federal income taxes. You can see their tax return here.
Why is the president's tax rate so low?
The short answer is that he gave a lot to charity. About 25% of the couple's income, or about $150,000, went to 33 charities, The New York Times reports. He gave a large chunk of that, about $103,000, to a Chicago foundation that provides housing to veterans getting treatment at military hospitals.
The president's tax rate was getting widely criticized Monday by Republicans and Democrats. Republicans portrayed Obama as a hypocrite for criticizing former opponent Mitt Romney for a low tax rate while personally getting a similar deal. Democrats said it just shows that tax rates on the wealthy are too low.
"We can't collect 18% from people making that much money and be able to afford to build roads and bridges and educate kids and do the medical research we used to," Sen. Chris Murphy, D-Conn., said on MSNBC's "Morning Joe," according to Politico.
Host Joe Scarborough, meanwhile, tore into the president. "Barack Obama has been championing raising taxes on small-business owners for years," Scarborough said, according to Business Insider. "And he's paying 18%, because raising those taxes don't affect him. And he talks about fairness?"
The White House countered the criticism by saying that Obama would have paid more in taxes under his own tax proposals, particularly the ones directed at high-income earners.
Why are the Obamas not paying income taxes on their expensive vacations? Normally, when an employer pays for such trips, the recipient pays the taxes.
I won some vacation trips on a previous job, including a Caribbean cruise. I had to pay income taxes on the fair market value of those vacations.
Face it....all politicians are hypocritical bastards.
From taxes to healthcare to gun control to expenses.
They just don't give a rat's a--.
These a-hole lawmakers need to just have a 10-15% flat tax for everyone, with never never never never any credits or deductions.
But they will never give up the power to pick and choose winners and losers.
Obama needs companies like GE for campaign funds and the foodstampers for votes so they pay nothing in income taxes , the rest of us get the shaft.
When the government pays for his parties, vacations, and golf trips, does it really make a difference what he paid, unless he has to report these as income which he won't.
I support a flat rate sales tax of 10% on every purchase. No exemptions. No excuses. If you spend your money here, you pay taxes here!
The means for collecting those taxes are already in place and currently serving out state and local governments daily. Only one more bracket on the form to fill out for the retailers.
The source of the money doesn't matter. You can earn it legally. You can earn it illegally. You can inherit it. You can dig it up from your back yard, buried there for 50 years. You can bring it with you in a suitcase, as you fly over here as a tourist from your foreign home. It doesn't matter where you got the money, you pay the same 10%, when you spend it.
Now, we have a fair and workable plan that pays for infrastructure, retirements, border security and so on!
There probably aren't very many of them who would. Why? Because they themselves are wealthy Americans. Plus it only takes one term in office for any congressman to get lifetime pension and healthcare benefits. Set for life.
The esteemed Senator Murphy has been a busy man.
Last week he was attacking Fox & NASCAR for broadcasting an event sponsored by the NRA.
This week he's whining that we don't tax Americans enough.
What will be on his agenda next week?
OMG, only the foolish (media and presidential debate moderators) would calc an effective tax rate on AGI when TI makes so much more sense and creates a better "apples to apples" comparison.
It is painfully obvious that Dumbama has the financial sophistication of a coffee cup. His tax return has Simpleton written all over it and this is the guy you 51%ers voted for to get you better jobs and more jobs. He does nothing useful with his money that would contribute to economic gains in this country. I know a ton of people with less capital that are running businesses and employing people and demonstrating "managed" risk taking and, above all, practicing AMBITION.
All are actionable traits that do more for this country than our leader. The people that are players in the economy can easily see the lack of leadership by this administration.
Can't wait for 2013, with his surtaxes, their will be paying more. Caught in his own tax trap!! He gives to charity like his administration hands out $$ to people.
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[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
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