Cavuto: Obama's Taxes Look a Lot Like Mitt Romney's...
After criticizing Romney for dodging taxes, President Obama paid almost half of the top rate.
The First Family’s 2012 tax returns are out today and they show that the Obamas paid an effective federal tax rate of 18.4 percent, almost half of the top tax rate last year. Neil Cavuto reacted on Your World this afternoon as the news broke, pointing out that President Obama slammed Mitt Romney for paying an effective tax rate of 14 percent on his income during the presidential campaign.
“Remember what a big deal ‘fatcat Mitt’ supposedly dodging the tax man was then, and ask yourself why the president paying not much more isn’t remotely a big deal now,” said Cavuto.
Neil discussed the president’s taxes with White House correspondent Ed Henry and John Tabacco of Fortified Funds.
Here’s the full breakdown from Associated Press:
WASHINGTON — President Obama made less in 2012 than in any other year since taking office, with about 40 percent of the nearly $609,000 in income that he and first lady Michelle Obama reported coming from book sales.
Obama, who renewed his call for higher taxes on top earners in the budget he released Wednesday, paid $112,214 in taxes last year, putting his effective federal tax rate at 18.4 percent. The Obamas donated almost one-quarter of their income to charity, according to tax returns released by the White House.
Most of the $608,611 that the Obamas reported in adjusted gross income came from the president’s salary, as he reported $394,840 in wages. An additional $258,772 came from royalties from his books, including his 1995 memoir “Dreams From My Father,” his 2006 political book, “The Audacity of Hope,” and a 2010 children’s book, “Of Thee I Sing: A Letter to My Daughters.”
Income from Obama’s books has fallen off since 2009, when his books sales surged after his inauguration. The Obamas made $5.5 million that year — his first year in office — but the figure dropped precipitously the next year to $1.73 million. In 2011, the Obamas reported about $790,000 in income.
The president and Mrs. Obama signed their tax returns on Monday — one week before the April 15 deadline for Americans to file their 2012 returns.
Itemized deductions of $258,385 brought the Obama’s taxable income down to $335,026. The first family deducted $45,056 in interest on the mortgage for their home in Chicago, plus $36,554 in state and local taxes and $26,751 in real estate taxes.
Through withholding and estimated tax payments during the year, the Obamas paid $129,029 to the Internal Revenue Service — an overpayment of $16,815. The Obamas directed that, rather than receive a refund, the overpayment will be applied to their taxes for next year.
The Obamas also claimed $39,875 in income from outside the United States. A White House official said all of that income came from book royalties, but did not disclose details about which countries the income came from. The official was not authorized to comment publicly on Obama’s taxes and spoke on condition of anonymity.
The president and first lady reported donating $150,034 — or 24.6 percent of their income — to 33 charities. That’s a slight dip from the previous year, when the Obamas donated more than $172,000. The largest contribution last year was a $103,871 donation to Fisher House Foundation, which provides humanitarian services to military members, veterans and their families. Other charitable groups that received donations from the president for $5,000 or less include the American Red Cross, Habitat for Humanity, Boys & Girls Clubs of America and the United Negro College Fund.
The president and the first lady also paid $29,450 in income taxes to Illinois, according to their state tax returns.
The White House also released tax returns for Vice President Joe Biden and his wife, Jill Biden. The Bidens paid $87,851 in federal income taxes on $385,072 in adjusted gross income, for an effective federal tax rate of 22.8 percent. The vice president and his wife paid state income taxes in two states — $13,531 in Delaware and $3,593 in Virginia. They reported donating $7,190 to charity.