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A Look inside the President’s Finances

 

It’s always interesting to get a look into somebody’s finances, and who better to snoop at than President Obama. He released his 2011 tax return, which can be viewed at: http://s3.documentcloud.org/documents/336093/bidens-and-obamas-release-2011-income-tax-returns.pdf.

It’s a very simple return: Wages from being the President of $394,821, $10,694 in interest income and $441,369 from selling his books, for total income of $789,674.

I always like to deduce how much somebody has in the bank, and by using Obama’s $10,694 in interest income, assuming he is getting a 1.5% return, that implies he has $713,000 in the bank. This is somebody who has made $1.8 million in 2010, $5.5 million in 2009, $2.7 million in 2008, $4.1 million in 2007, $983,826 in 2006 and $1.7 million in 2005 for a total of $18 million over 7 years. With this much income, I find Obama’s saving rate atrocious.

But what is the sense of saving when you can expect hundreds of millions of dollars in income after you leave the presidency? For example, Bill and Hilary Clinton have made over $109,000,000 from 2000-2007 after his two terms were up as President for activities such as speeches and book sales. So I’m sure Obama will be making boatloads of cash after he has left the Presidency, and there is always the few hundred thousand he has contributed to self-employed retirement plans that are tax deferred.

Next, looking at Obama’s itemized deductions shows he paid over $47,000 in mortgage interest. Assuming he refinanced recently and is getting a 4% interest rate, this means his principal balance is over $950,000 thousand. He has more in mortgage debt than he has in the bank and has made $18 million just in the last 7 years. But at least he isn’t underwater. According to Zillow, the value of his Chicago home is $1,052,100. But, since he purchased it for $1,650,000 in 2005 it appears he’s hurting like the rest of us.






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