healthmyths
Platinum Member
- Sep 19, 2011
- 29,088
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Talk about a circular transaction.
President Barack Obama could be able to claim a tax break for his decision to return 5 percent of his salary to the government.
Obama is giving back part of his $400,000 in salary in solidarity with federal workers facing furloughs because of budget cuts in the sequestration of federal funds.
Voluntary payments to reduce the public debt can be taken as deductions for charitable contributions, according to the Congressional Research Service.
At the 39.6 percent top federal tax rate the one Obama insisted on last year
the $20,000 deduction for this returned pay would put $7,920 in tax relief back in his pocket.
If this happens:,
the government would pay Obama,
who would pay the government,
which would then pay Obama.
The White House didnt responded immediately to a question about whether the president would claim the break on his 2013 tax return, which wont be filed until early 2014.
Obama's Pay Cut (Tax Break) - Bloomberg
And we wonder why we have government waste.. when the rules require Obama take $20k from his paycheck writes out a check to reduce the pubic debt and
then writes off $20,000 on taxes in 2014 tax return for 2013 and government tax laws allows him to reduce tax payments by $7,920!
WHEW!!!
Remember folks... this is the SAME IRS rules that will be looking over ALL our shoulders for our health insurance also!
President Barack Obama could be able to claim a tax break for his decision to return 5 percent of his salary to the government.
Obama is giving back part of his $400,000 in salary in solidarity with federal workers facing furloughs because of budget cuts in the sequestration of federal funds.
Voluntary payments to reduce the public debt can be taken as deductions for charitable contributions, according to the Congressional Research Service.
At the 39.6 percent top federal tax rate the one Obama insisted on last year
the $20,000 deduction for this returned pay would put $7,920 in tax relief back in his pocket.
If this happens:,
the government would pay Obama,
who would pay the government,
which would then pay Obama.
The White House didnt responded immediately to a question about whether the president would claim the break on his 2013 tax return, which wont be filed until early 2014.
Obama's Pay Cut (Tax Break) - Bloomberg
And we wonder why we have government waste.. when the rules require Obama take $20k from his paycheck writes out a check to reduce the pubic debt and
then writes off $20,000 on taxes in 2014 tax return for 2013 and government tax laws allows him to reduce tax payments by $7,920!
WHEW!!!
Remember folks... this is the SAME IRS rules that will be looking over ALL our shoulders for our health insurance also!
