Someone once said that there are two inevitable things in life: death and taxes. We all have to pay and the rule applies even to the inhabitants of the White House.
This April Obama’s tax return revealed that during 2012 President Barack Obama and First Lady Michelle Obama had a gross income of $608,611 and paid a total of $112,214 in taxes.
America’s first couple gave almost a quarter of their income to charity, including a $103,871 donation to the Fischer House Foundation. In addition to this the president also donates the proceeds of the children’s book he released in 2010, “Of Thee I Sing”, to the foundation.
Among the other organizations that received charitable donations from the Obamas were the American Red Cross, the Boys and Girls Club and Sidwell Friends school, where their daughters are enrolled.
For comparison, Vice President Joe Biden and his wife Jill reported a gross income of $385,072 and paid $87,851 in federal taxes during the last year giving only 2 percent of their income to charity.
Believe it or not, The Obama’s income has declined over the course of the presidency. Compared with 2009 the income of the US first family has dropped by almost $5 million. The decrease in their earnings is due to diminishing royalties from Obama’s books.
President Obama has frequently campaigned to raise taxes on higher income earners – including himself – while ensuring middle and lower income earners are not subject to tax increases. On January 2nd 2013, the President signed the American Taxpayer Relief Act, ensuring income tax rates stay low for 98 percent of Americans, while wealthier households have to pay a little more to help reduce the US deficit.
If you have ever wondered who exactly pays the salaries of two of the most important people in the world, here's your answer: The US president is paid by an agency of the Department of Defense, while the vice president is paid by the U.S. Senate.