Washington was gripped by budget battles in 2012, and now new documents show it wasn't the best financial year for the Obamas, either.
The president and first lady released their 2012 federal income tax return, posting an adjusted gross income of $608,611, and paying $112,214 in total taxes. Last year was the least profitable for the Obamas since taking office; when he first took office in 2008, Obama reported an income of $2,656,902, mainly from residuals from his book.
The president’s effective federal income tax rate sits at 18.4%. Reforming the tax code to force higher-income Americans pay more in taxes was a hot topic during the 2012 election season with Republican challenger Mitt Romney’s tax returns becoming a main focus. Romney’s effective tax rate is 14.8%.
In the 2014 federal budget the president unveiled on Wednesday, he called for the implementation of the so-called "Buffet Tax" that would require households with incomes of more than $1 million a year pay at least 30% of their income (after charitable giving) in taxes. The rule's namesake, billionaire investor Warren Buffet, made headlines when he called for tax reform in 2011 because he was paying a lower tax rate than his secretary, Debbie Bosanek, who reportedly pays a 35.8% tax rate.
The tax documents show the first family donated $150,000 to more than 30 charities, and took the mortgage rate deduction for their Chicago home.
The couple’s Illinois income-tax return showed them paying $29,450 in state income tax.
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