What do the Obamas know that we don’t about the future of the economy? The release of details of their personal wealth shows that the bulk of their income comes from book sales and clipping the coupons from US Treasuries. Treasuries are safe, safe, safe and generate a lot of tax avoidance- ah deductions.
Many Chief Executives have put stocks in special trusts while in office to avoid any hint of conflict of interest or favoritism but this – this is quite the revelation. As interest rates head back up (and they will) they will have to make adjustments. Usually the smart investor “staggers” the time of maturity on his/her bonds so that there isn’t a big tax hit. T-bills are taxed at maturity.
No wonder the Prez is able to spend public funds on his policies. He’s out of the rain and under the umbrella of securities. Ah but he can say with a straight face to the American people that he has faith in America and its future so he has invested in it.
To be fair, the bulk of their income appears to be royalties from their books and so the T-bills do offset their large tax liabilities. SamHenry is not a financial whiz just a “great guesser: with a lot of footnotes trailing in her wake. My blogging buddies are always at the ready to correct. Morb is in charge of grammar and spelling. Believe me, the others are fact checkers!
Michele and Barack don’t fear high taxes. The treasuries will keep them out of harm’s way. They have income largely protected from taxes. State and local tax will not be collected and federal only at maturity. More about T-bills here; details of Obama wealth here.