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 ...
FYI
So he wants no risk for himself and to pay no taxes. That seems starkly in contrast from what he advocates for rest of us. He wants us paying as much in taxes as possible to fund all his brilliant ideas. And he doesn’t seem to be taking the risk out of our investments considering that he is promoting more inflation via food and fuel (which are entirely government caused bubbles).
Hmmmmm...ole’ Bill and Hillary, why when they were the Arkansas duo in the ‘80’s..well they had to settle for “Red Bone”
http://www.washingtonpost.com/wp-srv/politics/special/whitewater/stories/wwtr940527.htm
Because those they vote for promise to make the ‘poor man rich while making a rich man poor’. It will never work.
"H" in his middle name stands not only for Hussein, but also for Hypocrite.
That’s funny. “red bone” is black slang for a light skined black. (But not as light as a “high yeller”.)
The last two years you say. What a coincidence. The very same two years he has avoided doing his job as a senator and has been running for president. This is absolutely Clintonian.
Corporate Scum-Sucker Tip #39- Providing inside information to a sitting US senator is a great way to get legislation passed that is favorable to your corporation's bottom line without messy wire transactions to off-shore bank accounts.
A person in Senator Obama’s income bracket would be foolish not to avail himself of the tax-free income of municipal bonds. It is only among misguided fans of the GWB presidency that stupidity has become a necessary requisite to run for President of the United States.
Unfortunately, their promises "work" to get them elected time and time again. And yet, despite the evidence to the contrary, hoi polloi keep electing them because of ignorance, usually due to persistently poor (or even deliberately perverse) education particularly in areas of history and economics.
Socialism (rich few, working in or with the government, benefiting at the expense of multitude of "equally" poor, with no middle class) doesn't work for anyone except those who are making these "promises".
“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. “
I propose a new tax.
Howz-about a 30% tax on interest gained in the Northern Municipal Money Market Fund? hmmmm???
Hmmmm.... any real estate investmnents?
If those numbers are correct, the highest possible gain he could have made is 5%. He probably made much less. You really think we should end tax exemption for municipal bonds?
This article is ridiculous.
THE RICH IS.... THE MIDDLE CLASS, READ BETWEEN THE LINES. HE WON’T CUT HIS OWN THROAT OR HIS RICH FRIENDS. THE DISENFRANCHISED STAND WITH THIER HANDS OUT, SO WHO IS LEFT HOLDING THE BAG?
That was eloquent. Please elaborate.
“A person in Senator Obama’s income bracket would be foolish not to avail himself of the tax-free income of municipal bonds. It is only among misguided fans of the GWB presidency that stupidity has become a necessary requisite to run for President of the United States.”
Really. No one is saying that Obama had to be intelligent to run for POTUS. No one is saying that the rich haven’t availed themselves of every means possible to avoid taxes for as long as the rich have existed.
My 2 cents.
I am neither an Obama supporter or detractor...but everyone is making wrong assumptions here.
The article says, “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.”
This is an account anyone can buy - it is a money market account that returns between 2 & 4% using gov’t and municple bonds. Whenever anyone - whether they are wealthy or poor - invests in these types of bonds, they don’t pay any income taxes. Obviously, most people don’t because the return is so low.
So before villifying the guy, and trust me there are many things he believes could be, his very conservative investment strategy shouldn’t be one of them. His investment fund has increased not from investment return but from his book sales.
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