Page 1 of 4 123 ... LastLast
Results 1 to 20 of 73

Thread: How tax-friendly Obama cuts his own

  1. #1
    Jets Insider VIP
    JetsInsider.com Legend
    Charter JI Member

    Join Date
    May 1999
    Posts
    31,408

    How tax-friendly Obama cuts his own

    [QUOTE][B]How tax-friendly Obama cuts his own
    Democratic presidential candidate Barack Obama would raise taxes on the rich, but as an investor, he seems eager to cut his own.[/B]

    By Tim Middleton

    Democratic presidential candidate Barack Obama wants to raises taxes on the wealthy, but as a member of that social class, he isn't eager to fall victim himself. He has invested at least $1 million in a fund that yields tax-free income.

    The Illinois senator's latest campaign-finance disclosure shows that his investments have nearly tripled in the past two years to as much as $7.4 million, and his income in 2007 surged past $4 million, not counting his government salary.

    Obama reported accounts with Morgan Chase Private Client Asset Management, an elite firm that deals only with the rich, as well as a host of retirement accounts, some in the name of his wife, Michelle.

    Because the required disclosure forms allow candidates to report their assets in ranges, such as $250,001 to $500,000, Obama's net worth at the end of 2007 -- not including his home and other nonfinancial assets -- was pegged between $2,022,016 and $7,356,000.


    Tax-free income

    By far the largest account, valued between $1 million and $5 million, was in the Northern Municipal Money Market Fund. It generated tax-free interest in 2007 of between $15,001 and $50,000.

    Northern Trust "has built a well-deserved reputation around being the banker for the überrich," says Andrew Richards, a Morningstar equity analyst. In a report on the Chicago company's stock, he writes, "The firm estimates it serves roughly 20% of the richest families profiled annually in the Forbes 400."


    Barack Obama

    Obama certainly doesn't fall into that category, but he does fit into the top 1% of federal income-tax payers. According to the Tax Foundation, this group accounts for 21% of total adjusted gross income nationwide but pays 39% of all individual federal income taxes.

    As of 2005, the latest data available, the cutoff for the top 1% was adjusted gross income of $364,657. The cutoff for the top 5% was $145,283.

    Raising taxes
    Obama has proposed a host of increases that would raise the federal income-tax rate on top earners -- and not just that 1% -- to 52% from 35%, according to an analysis by Investor's Business Daily. That calculation includes applying the 12.4% payroll tax that funds Social Security to some income above the current $102,000 cap, and letting some of President Bush's tax cuts expire.

    His former rival for the Democratic nomination, Hillary Clinton, has called his plan to raise Social Security taxes "a trillion-dollar tax hike on the middle class."

    Interest on municipal bonds, however, is exempt from tax, which is why Obama's Northern Trust fund generates tax-free income.

    Despite repeated requests over several days, the Obama campaign declined to comment.

    Ballooning wealth
    As recently as 2006, when Obama filed financial disclosures in advance of his presidential campaign, he reported a liquid net worth of between $1 million and $2.5 million. He and his wife already were private clients of JPMorgan Chase (JPM, news, msgs) at the time, and their investments were very conservative. (Read my earlier column "A look at Barack Obama the investor.")

    Continued: Royalties

    Since then his wealth has ballooned, notably due to sales of two books, "Dreams From My Father" and "The Audacity of Hope." In 2007, he collected royalties of $815,971 on the former and $3,278,719 on the latter.

    According to an attachment to his report, Obama received an advance in 2005 of $1.9 million for those books plus an untitled children's book, which has not yet been published. The attachment says that $200,000 of that was pledged to charity.

    The royalty payments received in 2007 are in excess of the advance, reflecting robust sales.

    Obama's Senate salary in 2007 was $165,200, rising this year to $169,300, in line with core inflation of 2.5%.

    The Obamas also reported owning U.S. Treasury notes valued between $500,001 and $1 million.

    Socially responsible losses

    Both the candidate and his wife reported owning shares in Vanguard FTSE Social Index Fund (VFTSX) in retirement accounts. His account was valued up to $250,000 and hers up to $100,000. Despite a miserable performance record, having trailed the S&P 500 Index ($INX) by an average of 3.1 percentage points a year over the past five years, Morningstar calls the fund "one of the most attractive socially responsible options around."

    Obama reports that his wife owned shares in another, much better fund, Vanguard Wellesley Income Fund (VWINX), that were worth between $100,001 and $250,000, also in a retirement account. However, the fund owns positions in three foreign oil companies -- Total (TTFNF, news, msgs), BP (BP, news, msgs) and Royal Dutch Shell (RDS.A, news, msgs) -- that do business with Iran, a position Obama opposes. His campaign told reporters the Wellesley fund would be sold.

    Video: Which candidate does Wall Street want?

    The Obamas also reported having invested between $100,001 and $250,000 in each of two 529 college savings plans, one intended for children from birth through age 8, the other for kids 9 to 12 years old. The Obamas have two daughters.

    They had a joint checking account with Morgan Chase Private Client valued between $15,001 and $50,000. Michelle Obama had a similar account valued between $1,001 and $15,000.

    The Obamas reported no liabilities, such as credit card debt. Mortgages and auto loans are exempt from reporting.

    Separately, Obama released his 2007 income taxes, showing that he and his wife had adjusted gross income of $4,139,965, including $260,735 from salaries. They made charitable contributions of $240,370, or 5.8% of their AGI, and paid federal taxes of $1,396,772.

    Michelle Obama resigned as a director of TreeHouse Foods (THS, news, msgs), a specialty food manufacturer, in May 2007. According to the disclosure, options she had to purchase company shares were canceled when she resigned, and none was exercised during her tenure.

    The Obamas' wallets are practically empty compared with the $100 million-plus fortune of Hillary Clinton and her husband, former President Bill Clinton. That of John McCain's wife, brewing heiress Cindy McCain, is larger still.

    McCain's disclosure, which I'll report on in my column tomorrow, also reveals investments in tax-free accounts in his wife's name, though none in his own -- but McCain has pledged to cut taxes, not raise them. Hillary Clinton has received an extension on her 2007 disclosure filing to June 30, when it won't matter.

    For now, the raise-taxes-and-avoid-them platform is occupied solely by Barack Obama.

    At the time of publication, Tim Middleton did not own or control shares of any company or fund mentioned in this column.

    [/QUOTE]

    [url]http://articles.moneycentral.msn.com/Investing/MutualFunds/HowTaxBoostingObamaCutsHisOwn.aspx?page=all[/url]

  2. #2
    And why are municipal bonds tax exempt?

  3. #3
    so, Obama is smart with is money....and we should be upset because.....

  4. #4
    Jets Insider VIP
    JetsInsider.com Legend
    Charter JI Member

    Join Date
    May 1999
    Posts
    31,408
    [QUOTE=piney;2588174]so, Obama is smart with is money....and we should be upset because.....[/QUOTE]

    smart enough to avoid paying the taxes he wants everyone else in his income bracket to pay (or investors in general for that matter) that is....
    Last edited by Come Back to NY; 06-17-2008 at 09:03 PM.

  5. #5
    the very end of the article grazes on McCain's larger still wallet - He married a very very rich woman but unlike Kerry had to sign a pre-nup. both are dubious titles but failed gigalo is somehow worse than successful gigalo.

  6. #6
    McCain is the same guy who gives his salary to charity. No thought of taxes when he made that decision.

    [QUOTE=bitonti;2588195]the very end of the article grazes on McCain's larger still wallet - He married a very very rich woman but unlike Kerry had to sign a pre-nup. both are dubious titles but failed gigalo is somehow worse than successful gigalo.[/QUOTE]

  7. #7
    Jets Insider VIP
    JetsInsider.com Legend
    Charter JI Member

    Join Date
    May 1999
    Posts
    31,408
    McCain's not calling for huge tax increases then avoiding paying them...what a stupid fuq....

    [QUOTE=cr726;2588204]McCain is the same guy who gives his salary to charity. No thought of taxes when he made that decision.[/QUOTE]

  8. #8
    No he just avoids them all together, that's his wife's problem.

    [QUOTE=Come Back to NY;2588206]McCain's not calling for huge tax increases then avoiding paying them...what a stupid fuq....[/QUOTE]

  9. #9
    [QUOTE=piney;2588174]so, Obama is smart with is money....and we should be upset because.....[/QUOTE]hypocrite.

  10. #10
    [QUOTE=Come Back to NY;2588188]smart enough to avoid paying the taxes he wants everyone else in his income bracket to pay (or investors in general for that matter) that is....[/QUOTE]

    and what he is doing is illegal how?

    and it has been proven that he is the only one who can do this how?

    I mean, basically you have a guy who is trying to make his money work for him, and for that he is getting blasted?

    This may be the dumbest criticism yet.....

  11. #11
    [QUOTE=2foolish197;2588211]hypocrite.[/QUOTE]

    how is he a hypocrite?

    please explain how only Obama can use this process to protect his money while no one else in his tax bracket can?

  12. #12
    Jets Insider VIP
    JetsInsider.com Legend
    Charter JI Member

    Join Date
    May 1999
    Posts
    31,408
    [QUOTE=piney;2588514]and what he is doing is illegal how?

    and it has been proven that he is the only one who can do this how?

    I mean, basically you have a guy who is trying to make his money work for him, and for that he is getting blasted?

    This may be the dumbest criticism yet.....[/QUOTE]

    the biggest idiot statement, hands down, is you insinuating anyone claimed what he was doing was illegal- that borders on retarded....

  13. #13
    Please explain how being fiscally prudent with your own money is a bad quality for someone who will be taking care of the nation's money.

    Municipal bonds are tax free for a reason. They are to encourage investors to buy bonds at a lower rate and this saves municipalities money.

    There is no hypocrisy here at all. As a matter of fact there is nothing here at all.

    This thread is an embarrassment to anyone expousing conservative values.

  14. #14
    Jets Insider VIP
    JetsInsider.com Legend
    Charter JI Member

    Join Date
    May 1999
    Posts
    31,408
    [QUOTE=Queens Jet Fan;2588622]Please explain how being fiscally prudent with your own money is a bad quality for someone who will be taking care of the nation's money.

    Municipal bonds are tax free for a reason. They are to encourage investors to buy bonds at a lower rate and this saves municipalities money.

    There is no hypocrisy here at all. As a matter of fact there is nothing here at all.

    This thread is an embarrassment to anyone expousing conservative values.[/QUOTE]

    sure it is embarrassing...just like algore telling us we should conserve while he racks up annual electric bills which is more than most people pay for cars...

    hussien is threatening to double capital gains tax yet shields all his investment income (that is reported) from tax.....

    same sh!t different day with the rats- fours years ago the lovely teresa heinz kerry was spouting the same nonsense about taxes and earned an income of nearly $250K (if memory serves me) from tax free bonds/funds/etc...

    the sad thing is if he is elected, his economic plan of tax, tax, tax will go bust and interest rates are bound to rise- everyone will be running for higher rates from tax free bonds/funds/etc lowering the expected take for the government...
    Last edited by Come Back to NY; 06-17-2008 at 11:48 PM.

  15. #15
    [QUOTE=Come Back to NY;2588188]smart enough to avoid paying the taxes he wants everyone else in his income bracket to pay (or investors in general for that matter) that is....[/QUOTE]

    Dude, you're really reaching on this one.

    We're supposed to hate the guy for making a smart, legal investment?

  16. #16
    Jets Insider VIP
    JetsInsider.com Legend
    Charter JI Member

    Join Date
    May 1999
    Posts
    31,408
    [QUOTE=Klecko73isGod;2588981]Dude, you're really reaching on this one.

    We're supposed to hate the guy for making a smart, legal investment?[/QUOTE]

    reach?? maybe- but it is ironic the guy who says he'll raise taxes if elected shelters himself from them and it's part and parcel to the "not in my backyard" theory we see from the left all the time....

    wind power?? great- just as long as it's not in my backyard....

    double capital gains taxes??? great- just as long as I'm not paying them...
    Last edited by Come Back to NY; 06-18-2008 at 08:15 AM.

  17. #17
    [QUOTE=Queens Jet Fan;2588622]Please explain how being fiscally prudent with your own money is a bad quality for someone who will be taking care of the nation's money.

    Municipal bonds are tax free for a reason. They are to encourage investors to buy bonds at a lower rate and this saves municipalities money.

    There is no hypocrisy here at all. As a matter of fact there is nothing here at all.

    This thread is an embarrassment to anyone expousing conservative values.[/QUOTE]

    +1.

  18. #18
    just to summarize - Obama pays taxes, Mccain doesn't have to because of his sugar mommy. Carry on.

  19. #19
    Could you imagine if Obama left his wife for a sugar mama? Then it is a problem.


    [QUOTE=bitonti;2589147]just to summarize - Obama pays taxes, Mccain doesn't have to because of his sugar mommy. Carry on.[/QUOTE]

  20. #20
    Why is it that Democrats, who love the idea of higher taxes, love the idea that the "wealthy" don't pay their fair share, and love the idea of trusting Govt. to handle things, never seem to volunteer more of their own personal money to those causes?

    There is no law saying one cannot pay more taxes than required. If the wealthy don't pay enough, taxes should be higher, and the Govt. should be trusted with our money because Govt. knows best, why not volunteer more of it if you're a Democrat, and speak with your actions, rather than your words?

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Follow Us