Last week Vladimir Putin dubiously revealed that in 2012 his total income was just $187,000. That is hard to believe considering many experts believe Putin actually has stashed away a secret $70 billion personal fortune. Following suit, earlier this week Barack Obama released his 2012 tax return. The return outlines exactly how much Barack and Michelle earned last year including his Presidential salary, royalties from book sales and charitable donations. And while Obama earned plenty of money to be included in the 1%, his income was actually down significantly compared to prior years.
Obama's 2012 Income / Bill Pugliano/Getty Images
According to the just-released tax return, Barack Obama's total income in 2012 was $662,076. While that's a very impressive number, and easily enough to place Obama in the upper echelons of the 1%, his income actually dropped 27% compared to his 2011 income of $844,585. $662,076 is also 87% less than his all time peak income of $5.5 million which occurred in 2009.
The drop in Obama's income represents waning sales of his two best selling books: 2005's "Dreams from My Father: A Story of Race and Inheritance" and 2006's "The Audacity of Hope". Out of $662,076, $400,000 came from Barack's Presidential salary. Obama's book royalty income in 2012 was $258,772. To this day, Obama earns $3.75 for every hardcover copy and $1.12 for every paperback he sells.
Barack and Michelle donated 25% of their gross income to charity, roughly $150,000. The majority of their donations, around $100,000, went to the Fisher House Foundation, a charity that helps wounded military families find housing near hospitals while treatment is ongoing. They also donated $5000 to their daughters' elite private school Sidwell Friends.
After deductions, The Obamas' adjusted gross income was $608,611. They paid $112,214 in taxes. Interestingly, The Obamas are still technically Illinois residents which means they had to pay $29,450 in state taxes. Their effective federal tax rate was 18.4%. Their total blended (combined state and federal) tax rate was 24.65% (18.4 + 6.25). Vice President Biden and his wife Jill reported 2012 income of $385,072.
The Obama's Income History:
- 2000: $240,000
- 2001: $272,759
- 2002: $259,394
- 2003: $238,327
- 2004: $207,647
- 2005: $1,655,106
- 2006: $983,826
- 2007: $4,139,965
- 2008: $2,656,902
- 2009: $5,505,409
- 2010: $1,728,096
- 2011: $844,585
- 2012: $662,076
Total: $19,270,981
