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Obama's Secretarial Tax Fallacy
Natural Born Conservative ^ | April 13, 2012 | Larry Walker, Jr.

Posted on 04/13/2012 5:29:46 PM PDT by NaturalBornConservative

By: Larry Walker, Jr.

There's no way Obama's secretary paid a higher effective tax rate than the Obamas. You don't believe it? Are income taxes such a mystery that we can't find out? Well, let's run the numbers and see.

According to Jake Tapper of ABC News, Mr. Obama released his 2011 federal income tax today, with he and his wife reporting an adjusted gross income of $789,674. The Obamas paid $162,074 in total tax – an effective federal income tax rate of 20.5%.

The White House also reported that President Obama’s secretary, Anita Decker Breckenridge, makes $95,000 a year. White House spokeswoman Amy Brundage told ABC News that Breckenridge “pays a slightly higher rate this year on her substantially lower income, which is exactly why we need to reform our tax code and ask the wealthiest to pay their fair share.”

The only problem with this story is that Amy Brundage doesn't know how to compute a tax return, or an effective tax rate. If Ms. Breckenridge were single, made wages of $95,000, and had no other dependents or deductions, her standard deduction would have been $5,800 and her personal exemption $3,700. So taking Ms. Breckenridge's income of $95,000, and subtracting her deductions of $9,500 results in taxable income of $85,500 and an income tax of $17,564 (click the tax return image below to enlarge). Thus, her effective tax rate is 18.4% (17,564 / 95,000). The last time I checked 18.4% was less than, not greater than 20.5%.

Is the Obama Administration so delusional that it believes the American public doesn't understand basic math? Get a clue! In my opinion we're all paying way too much for the incompetence of this government. The mainstream media should be ashamed for not verifying the numbers. And Obama's definitely on the wrong track, one which will fortunately lead to the end of his short and sorry career. That suits me fine.


TOPICS: Business/Economy; Government; Politics; Society
KEYWORDS: obama; politics; secretary; taxes

1 posted on 04/13/2012 5:29:50 PM PDT by NaturalBornConservative
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To: NaturalBornConservative

The Obama’s probably have a lot more unreported income going straight from donors to the Caymans (or some muslim country) and that’s what the WH based its figures on.


2 posted on 04/13/2012 5:35:54 PM PDT by Bryanw92 (Sic semper tyrannis)
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To: NaturalBornConservative

The federal personal income tax system has failed. Time to abolish it.


3 posted on 04/13/2012 5:36:55 PM PDT by muawiyah
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To: NaturalBornConservative
So she paid 20,000 on $95,000 and he paid 160,000 but they're almost the same rate and $160,000 is not enough??

Where's the problem?? Not the taxes....IT'S THAT SHE DIDN'T MAKE $790,000 !!!!!!!!!!!

4 posted on 04/13/2012 5:38:22 PM PDT by Sacajaweau
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To: NaturalBornConservative

Is the Obama Administration so delusional that it believes the American public doesn’t understand basic math?

YES, they are. What makes me so mad is that so called news agencies run with this BS without doing what you did.


5 posted on 04/13/2012 5:38:36 PM PDT by Jude in WV
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To: Bryanw92

I really think nobama hasn’t paid for one thing in his complete worthless corroding life...anything (even his admitted crack). nobama (and the “Worst” Lady, mooch-elle) are the ultimte moving-on-up, equal-opportunity, affirmative-action grifters. How pathetic.


6 posted on 04/13/2012 5:39:47 PM PDT by hal ogen (1st Amendment or Reeducation Camp?)
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To: hal ogen

Rear end of the original Baraq BUMP


7 posted on 04/13/2012 5:51:19 PM PDT by Publius6961 ("It's easy to make promises you can't keep" - B.H.Obama Feb 23, 2012)
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To: NaturalBornConservative

If she’s married, has dependents, owns a home, gives to charity, or pays a substantial amount in State taxes, she could itemize her deductions using Schedule A, which would make her effective tax rate substantially less than the 18.4% I calculated here. What I am showing is her maximum possible effective tax rate.


8 posted on 04/13/2012 5:56:53 PM PDT by NaturalBornConservative ("Something that everyone knows isn't worth knowing" ~ Bernard Baruch)
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To: NaturalBornConservative

Wait..the purple lipped prince made $800k...she made $95k...is he not supposed to give her approx $500k????


9 posted on 04/13/2012 6:01:12 PM PDT by IrishPennant (Are you behind a "Blade of Grass?")
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To: IrishPennant

You’re funny....Obomba won’t even give his half brother who lives on something like $100 per YEAR any money....


10 posted on 04/13/2012 6:09:16 PM PDT by goodnesswins (2012..."We mutually pledge our Lives, our Fortunes, and our Sacred Honor")
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To: goodnesswins

“Obomba won’t even give his half brother who lives on something like $100 per YEAR any money....”

The simplest answer is that the guy isn’t 0bama’s relative, you know? Nor the ‘aunt,’ ‘uncle,’ etc.


11 posted on 04/13/2012 6:15:36 PM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spiritui Sancto.)
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To: NaturalBornConservative

12 posted on 04/13/2012 6:19:32 PM PDT by Lancey Howard
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To: NaturalBornConservative

Ubama is a shameless, lying, piece of dog sh** and America will flush that turd down the toilet of history in November.


13 posted on 04/13/2012 6:21:02 PM PDT by Lancey Howard
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To: IrishPennant

Hey, I’m jes’ sayin...


14 posted on 04/13/2012 6:31:50 PM PDT by IrishPennant (Are you behind a "Blade of Grass?")
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To: goodnesswins

Yes, he won’t take care of his own step brother, but didn’t the college where the Mrs.’s brother coaches basketball, receive 17million in stimulus money?


15 posted on 04/13/2012 6:55:04 PM PDT by This I Wonder32460
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To: NaturalBornConservative
Is the Obama Administration so delusional that it believes the American public doesn't understand basic math?

Absolutely.
His political base does not. Otherwise their heads would explode, if they understood the implications of 16 trillion$ in debt.

16 posted on 04/13/2012 7:02:53 PM PDT by Publius6961 ("It's easy to make promises you can't keep" - B.H.Obama Feb 23, 2012)
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To: NaturalBornConservative

You’re right ... unless they included her payroll tax of $7K, which the left usually does.

It is their usual tactic when asked about 50% of the people paying zero taxes.

Just as the budget is quoted as $3.5T because they combine SSM with general budget items (even though they are funded by a separate payroll tax), they like to include all taxes a person paid, sometimes even adding in local sales taxes or whatever they need to make it look like those 50% are not freeloaders.


17 posted on 04/13/2012 7:11:08 PM PDT by Kellis91789 (The ultimate result of shielding men from the effects of folly is to fill the world with fools.)
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To: This I Wonder32460

Yep...right here in Oregon State...


18 posted on 04/13/2012 7:14:52 PM PDT by goodnesswins (2012..."We mutually pledge our Lives, our Fortunes, and our Sacred Honor")
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To: Kellis91789

If there was nothing to hide, they would have released the secretary’s return as well. Her State income tax deduction alone would have been enough to itemize (to beat the $5,800 standard deduction). Throw in some charitable gifts, possibly a mortgage, ad valorem, and real estate taxes, and her effective rate quickly fizzles to the national average of 8% to 13%.


19 posted on 04/13/2012 8:21:36 PM PDT by NaturalBornConservative ("Something that everyone knows isn't worth knowing" ~ Bernard Baruch)
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To: NaturalBornConservative

That’s my point — the left includes all those local taxes and Payroll Taxes when they talk about the “effective tax rate” the secretaries of the world pay. Not as deductions that made her Federal Income Tax rate lower, but as part of the total taxes they paid.

They disingenously only show the Federal Income Tax return for high earners, but if pressed for an explanation to questions like yours, they will admit they included all the other taxes she paid to inflate her number even though it has nothing to do with the Federal Income Tax rate the Buffet Rule would affect.


20 posted on 04/13/2012 11:17:11 PM PDT by Kellis91789 (The ultimate result of shielding men from the effects of folly is to fill the world with fools.)
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To: NaturalBornConservative

Can someone tell me why a secretary is making $95,000.00 ???And I’m sure she’s just one of several.


21 posted on 04/13/2012 11:58:07 PM PDT by Sacajaweau
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To: Kellis91789

I doubt they put any such thought behind it. It’s more likely that her return was prepared by Timothy Franz Geithner, or another Obama Administration incompetent. Actually they’re using the same old leftist stragegy — Lie Big, Lie First, and Repeat the Lie, Repeat the Lie, Repeat the Lie, and eventually people will believe it.

Meanwhile, Obama jumped through every possible loophole he could without risking an audit. The effective rate mentioned on the Obamas return, which is public information, is clearly taken directly from the return (I checked) — total tax divided by adjusted gross income, so I’m taking the lie at its bald-faced value.


22 posted on 04/14/2012 4:39:22 PM PDT by NaturalBornConservative ("Something that everyone knows isn't worth knowing" ~ Bernard Baruch)
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To: NaturalBornConservative

Actually they’re using the same old leftist “strategy” — Lie Big, Lie First, and Repeat the Lie, Repeat the Lie, Repeat the Lie, and eventually people will believe it.


23 posted on 04/14/2012 4:58:45 PM PDT by NaturalBornConservative ("Something that everyone knows isn't worth knowing" ~ Bernard Baruch)
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To: NaturalBornConservative

Something is puzzling me and perhaps you can help. The 0 and his wife—do they file one form together or do they each file a form? From what I have read they each gifted each of their daughters $12,000 for a total of $24,000 each or $48,000 altogether. It is my understanding that being first lady is an unpaid position so what was her source of income that she could make these gifts to her daughters? If she doesn’t have a separate source of income and the gifts were deducted from the form filed for the couple wouldn’t that be way over the legal limit they could deduct? I’m sorry if I am asking dumb questions but I have no idea how American income tax works.


24 posted on 04/14/2012 5:25:08 PM PDT by Albertafriend
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To: Albertafriend

Married filing jointly allows double the gift limit.


25 posted on 04/15/2012 2:04:09 AM PDT by Kellis91789 (The ultimate result of shielding men from the effects of folly is to fill the world with fools.)
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To: Kellis91789

Thanks.That’s really nice for them since the gifts are being taken from the same pot of money to which she added nothing. I did find the tax forms and as far as I could tell she had no income.


26 posted on 04/15/2012 7:48:31 AM PDT by Albertafriend
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To: Albertafriend

“Married” means half his income and debts belongs to her, same as any other married couple. Are you dismissing the value of mothers who are homemakers and don’t work outside the home ?


27 posted on 04/16/2012 12:18:21 AM PDT by Kellis91789 (The ultimate result of shielding men from the effects of folly is to fill the world with fools.)
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To: Albertafriend
No. Actually if a person is married and makes a gift to another married person they could technically gift $48,000 as a one time gift (12K from each and 12K to each). It doesn't matter which one made the money, since under the related party rules half of ones income belongs to their spouse. And aside from that you can gift as much as you want to anyone and not owe any gift tax under current law. You just need to file a return and take the applicable tax uniform tax credit to get out of paying any tax.

But you raise another point the media missed. The Obamas file a joint income tax return. The tax rates for married couples are lower than the rates for those who are single or file separately. So if his secretary files as single, her tax rate would be higher even with less income than a married couple, but under the circumstances it doesn't matter, she could not have paid a higher effective tax rate than the Obamas regardless of her filing status.

28 posted on 04/19/2012 8:36:03 PM PDT by NaturalBornConservative ("Something that everyone knows isn't worth knowing" ~ Bernard Baruch)
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To: NaturalBornConservative

Thank you for that very nice explanation.I have been suddenly in the hospital since Thursday so I wasn’t able to make any response till now.


29 posted on 04/24/2012 7:10:47 AM PDT by Albertafriend
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To: Albertafriend

You’re welcome hope you’re better now. I noticed that too when I was looking over the data and wanted an explanation. It took a while to come up with what I did. It’s actually pretty deep, as in almost completely buried.


30 posted on 04/25/2012 3:19:39 PM PDT by NaturalBornConservative ("Something that everyone knows isn't worth knowing" ~ Bernard Baruch)
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To: Albertafriend

Oops, I thought I was responding to another comment. You’re welcome though, and actually I knew this off the top of my head.


31 posted on 04/25/2012 3:22:05 PM PDT by NaturalBornConservative ("Something that everyone knows isn't worth knowing" ~ Bernard Baruch)
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