Posted on 06/09/2008 1:45:02 PM PDT by CutePuppy
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.
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."
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(Excerpt) Read more at articles.moneycentral.msn.com ...
True, range would be from 1.5% to 5.0% tax-free. However, what is more interesting is his choice of putting the bulk of assets into virtually risk-free tax-free municipal bond account as opposed to regular non-tax-beneficial account is very telling, as that also separates it from lumping regular interest income together with earnings income which may have either put him into higher bracket or would reduce the bulk of interest income overall on the after-tax basis.
Also, goes to show that raising marginal income tax on richest will not do diddley squat to raise the revenue to the treasury as the super-rich do not have to take income in unfavorable years or take them as ordinary income (hence, $1 a year salaries etc.) - that is only for show and exercising power and control of government micromanagement, while creating more hurdles and making it more difficult for middle class to grow richer.
It sounds like B.O. HUSEIN’s private coffers are experiencing a Tsunami of Unexplained personal income.
Bought a $2,000,000 personal Mansion with a $1,500,000
side lot and the inherent cost of maintenance, taxes, insurance, and cleaning and servant help( slave labor?).
Heaven forbid that he and Michelle didn’t thoroughly rebuild and renovate their Mansion to their newly acquired status. Now We find that these “Dirt Poor” Community Servants( according Madame Michelle) have salted away another $7-8,000,000 in after-tax “Income” into Tax Free Investments! Even Bill Clinton didn’t make this crazy amount of money off his overadvanced Tomb. B.O. HUSSEIN appears to have learned well from His Mentor, TONY REZKO who is safely locked away in a Federal Prison, safely out of “Harms Way” by his own request. We, the citizens of the Great United States deserve an Honest and Patriotic President as is George W. Bush, not a sleazy, smoothtalking, empty suited, con artist and Snake Oil Salesman. which B.O. HUSSEIN is more and more appearing to be. May GOD Bless America and may John McCain be Our Next President! AMEN!
It's not his investment savvy or acumen that is an issue, it's hypocrisy, which of course is not limited to him but is so characteristic of his "tax the rich" rich politicians and friends, because higher taxes and byzantine rules and loopholes only stifle the middle class, not truly rich.
‘That’s funny. “red bone” is black slang for a light skined black. (But not as light as a “high yeller”.)
FreeRepublic IS great...ya learn something new all the time!!tnx
Mo
I’m just making a point that folks who want to tax other people’s investments ought to invest in taxables investments themselves.
Barak has a problem with rich folks keeping too much of their dollars. Maybe he’ll feel differently if tax proposals include his favorite investments.
Raising investment tax rates will encourage risk aversion. Muni bond investments may be necessary but tax policy that favors them to avoid confiscatory tax rates will lead to slow growth and less tax revenue. In addition, high investment tax rates will lead to prolifigate state and local spending because of easy credit access. Tax revenue and growth will also decline because wealthy investors will invest in other parts of the world with less penalty for risk taking.
The rat vision is a static economy controlled by rat fiat. The rats want to determine investment dollar flows. Everyone except corporate management will be unionized with almost continuous labor unrest. Rat policy will increase labor costs, lower employment, and increase welfare recepients. The future looks like France except France has a leader who wants to make France look less like France.
The rats look like they want a war on economic freedom. The prospects look grim for higher living standards.
That's silly.. If you accused me of hypocrisy on those grounds, I'd say "you caught me.. I'm a rich guy not paying taxes.. Oh wait, isn't this what I'm trying to 'change'?" You're practically doing his work for him.
Exactly, either flight or reallocation of capital, with the consequences of lower economic growth and tax revenue (exactly opposite of stated goal of higher taxes), let alone increase of unproductive economic activities seeking nothing but tax shelters and avoidance schemes which are usually directly proportionate to the highest marginal tax rates.
Of course, corporate taxes should be scrapped altogether and the sooner the better - they bring relatively little tax revenue and are the cause of most accounting abuse, while at the same time only being anticompetitive for US companies and increasing cost of US companies products to consumers.
“That’s silly.. If you accused me of hypocrisy on those grounds, I’d say “you caught me.. I’m a rich guy not paying taxes.. Oh wait, isn’t this what I’m trying to ‘change’?” You’re practically doing his work for him.”
why is it silly?
If Obama is so bent on the “fairness” of the rich paying their “fair share” - then why doesn’t he channel those funds into taxable investments?
Why is it “fair” for other rich folks to pay taxes - but not him?
Right on. It appears some people here have completely missed the point. Obama talks of raising capital gains taxes because it’s the “fair thing to do”. He’s all for the “rich” paying taxes, yet he chose tax free investments to park his money. These democrats don’t exactly practise what they preach, do they.
I guess he is taking his own advice and not pursuing that MIDDLECLASSNESS,He going right to the TOP!
thank you!
I wasn’t really trying to comment on whether or not it is a wise investment - or a conservative strategy.
If Obama feels that it is a matter of fairness that the rich should be taxed at higher rates - then what’s with the tax-free investment?
“Why is it “fair” for other rich folks to pay taxes - but not him?”
He pays taxes, just not on interest earned on municipal bonds, the returns from which are, by law, untaxed.
Because they’re untaxed, they pay a lower interest rate
than taxable (and otherwise comparable) investments. Hence, municipalities are able to borrow money cheaply, which is good for you if you don’t want to pay higher property taxes to finance schools and firehouses and all the other things municipalities provide.
I just don’t like seeing someone criticized for doing something perfectly legal, common, and actually beneficial. He’s lending money to towns, and the law says that he doesn’t have to pay taxes on the meager interest they give him in return.
If he wants to change the law, fine, as long as he’s going to continue to obey it. When he does something against the law, I’ll criticize him.
“I just don’t like seeing someone criticized for doing something perfectly legal, common, and actually beneficial.”
Missing the point.
He is a rich man.
He is earning tax free interest.
It doesn’t matter how low or high the rate of return is.
Obama is engaging in the rhetoric of class warfare where the “rich” do not pay their fair share, and darnit! He’s going to see to it that they do.
Meanwhile - this wealthy man chooses a tax-free investment.
If he truly believes his own rhetoric, he would choose to give the government more of his own money.
Afterall - he has declared that is what is “fair”.
So you think anyone who wants to change the law should pro-actively start behaving as though the law were changed already?
The rich are not Obama or his friends they are the MIDDLE CLASS, me and you that will bear the brunt of his socialist “Christmas is everyday for the lazy and disenfranchised” mentality. Who do you think is going to pay for all of his? certainly not his pals.
Get a clue, newbie. Obama’s “conservative investment stratagy” is not what is being attacked here. Sheeesh.
once again...missing the point.
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