Comments on: White House Releases Tax Returns http://www.taxgirl.com/white-house-releases-tax-returns/ Paying taxes is painful... but reading about them shouldn't be. Sat, 21 Nov 2009 20:16:58 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Kelly http://www.taxgirl.com/white-house-releases-tax-returns/comment-page-1/#comment-10231 Kelly Fri, 24 Apr 2009 19:37:30 +0000 http://www.taxgirl.com/?p=3216#comment-10231 You have to remember that you're using marginal rates, not the actual rates. Since our system is progressive, every one pays the same rate on the same income. So everyone - Obama and Bill Gates included - pays the same 10% on taxable income between $0 and $16,050; the same 15% on taxable income between $16,050 and $65,100... all the way up the brackets until it hits 35% on taxable income over $357,700. The $2.7 million was AGI - his taxable income (after deductions) was $2.3 million. After credits and other taxes, the final damage was $855,000. That puts him in the 35% bracket but he paid an average rate of just under 34%. He'll actually be better off next year (by a tiny percent) if the numbers stay the same. <a href="http://www.whitehouse.gov/assets/documents/vicepresident_federal2.pdf" rel="nofollow">Biden's 2008 tax return can be found here</a>. You have to remember that you’re using marginal rates, not the actual rates. Since our system is progressive, every one pays the same rate on the same income. So everyone – Obama and Bill Gates included – pays the same 10% on taxable income between $0 and $16,050; the same 15% on taxable income between $16,050 and $65,100… all the way up the brackets until it hits 35% on taxable income over $357,700.

The $2.7 million was AGI – his taxable income (after deductions) was $2.3 million. After credits and other taxes, the final damage was $855,000. That puts him in the 35% bracket but he paid an average rate of just under 34%. He’ll actually be better off next year (by a tiny percent) if the numbers stay the same.

Biden’s 2008 tax return can be found here.

]]> By: Tim http://www.taxgirl.com/white-house-releases-tax-returns/comment-page-1/#comment-10230 Tim Fri, 24 Apr 2009 18:17:34 +0000 http://www.taxgirl.com/?p=3216#comment-10230 How come Obama's total tax rate is only 32% (855,000 / 2,700,000). And Biden's Federal tax rate is only 17% ($46,952 / 269,000)? Are the $2.7 mil and the $269k their AGI, or their taxable income? or something else? Thanks! :-> How come Obama’s total tax rate is only 32% (855,000 / 2,700,000).
And Biden’s Federal tax rate is only 17% ($46,952 / 269,000)?

Are the $2.7 mil and the $269k their AGI, or their taxable income? or something else? Thanks! :->

]]> By: Kelly http://www.taxgirl.com/white-house-releases-tax-returns/comment-page-1/#comment-10152 Kelly Thu, 16 Apr 2009 19:46:06 +0000 http://www.taxgirl.com/?p=3216#comment-10152 You know, I don't have a link handy but I'll find one. You know, I don’t have a link handy but I’ll find one.

]]> By: Brian http://www.taxgirl.com/white-house-releases-tax-returns/comment-page-1/#comment-10150 Brian Thu, 16 Apr 2009 12:05:06 +0000 http://www.taxgirl.com/?p=3216#comment-10150 Is there a link to look at them? Is there a link to look at them?

]]>