Today, the President released his 2014 federal income tax returns. He and the First Lady filed their income tax returns jointly and reported adjusted gross income of $477,383. The Obamas paid $93,362 in total tax.
The President and First Lady also reported donating $70,712 – or about 14.8 percent of their adjusted gross income – to 33 different charities. The largest reported gift to charity was $22,012 to the Fisher House Foundation. The President’s effective federal income tax rate is 19.6 percent.
In January 2013, the President signed into law legislation that extended tax cuts to middle-class and working families and helped improve the country’s fiscal health by asking the wealthiest Americans to pay their fair share. In 2014, as a result of his policies, the President was subject to limitations in tax preferences for high-income earners, as well as additional Medicare and investment income taxes.
While we’ve made progress in ensuring that the wealthiest Americans pay their fair share by raising their tax rate to the level it was under President Clinton, there is more work to do. We need to close special tax loopholes for millionaires and billionaires, and invest in the middle class. The tax policies proposed in the President’s Budget would make paychecks go further in covering the cost of child care, college, and a secure retirement, and would create and expand tax credits that support and reward work.
The President and First Lady also released their Illinois income tax return and reported paying $22,640 in state income tax.
The Vice President and Dr. Jill Biden also released their 2014 federal income tax returns, as well as state income tax returns for both Delaware and Virginia. The Bidens filed joint federal and combined Delaware income tax returns. Dr. Biden filed a separate non-resident Virginia tax return. Together, they reported adjusted gross income of $388,844. The Bidens paid $90,506 in total federal tax for 2014, amounting to an effective tax rate of 23.3%. They also paid $13,661 in Delaware income tax and Dr. Biden paid $3,777 in Virginia income tax. The Bidens contributed $7,380 to charity in 2014, including contributing the royalties received from Dr. Biden’s children’s book, net of taxes, to the United Service Organizations, Inc. (USO).