No extensions necessary for President Obama and Vice President Biden. Both have their tax returns for 2008.
Here’s the scoop:
President Obama and his wife reported $2.7 million in 2008, about $1.5 million less than they reported in 2007 (I guess the recession has hit everyone). A majority of their income came from royalties from Obama’s books (note to self: get book deal).
The Obamas reported $172,050 in charitable donations. The largest donations were made to CARE and to the United Negro College Fund.
Their total tax bill? $855,323.
Vice President Biden and his wife reported total income of $269,256 last year (Biden needs to get himself a book deal). Of that, they donated $1,885 to charity and paid $46,952 in federal income tax.
Is there a link to look at them?
You know, I don’t have a link handy but I’ll find one.
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! :->
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.