01-17-2013, 10:02 PM
Join Date: Feb 2009
Location: Hampton Roads, VA
My Ride: Phoenix Yellow M3
Just Explain It: Who Pays For Presidential Perks?
Being the President of the United States comes with a tremendous amount of pressure and responsibility. However, the commander in chief does enjoy preferential treatment most of us will never experience.
Some of those perks include: having his limo transported by plane wherever he travels, getting to see first-run and not-released movies free of charge, never stopping for a stop light or sign and his own private zip code.
Which brings us to todayís Just Explain It.
Whatís the value of the presidency when you add in all the perks for being Commander-in-Chief?
We may never be able to put a dollar amount on the value of the presidency. Thatís because some of the costs associated with the position are buried in many different budgets and scattered between different governmental departments.
Letís take a look at some of the presidential perks covered by your tax dollars. They not only make the presidentís life easier, theyíre for security and practical purposes too.
Number one -- the presidentís salary is $400,000 a year. The Chief Executive also gets a budget for entertainment, business and travel expenses.
Number two -- Transportation. To get the president from place to place safely, he has Air Force One, Marine One and a limo available at a momentís notice. A 2012 Congressional Research Service report found that Air Force One costs about $180,000 an hour to operate.
According to the Hawaii Reporter, one round-trip flight to Honolulu by President Obama last month cost about $3.2 million. But the president made two of them because of the fiscal cliff crisis. That doubled the price tag to $6.4 million.
Number three Ė The White House. For the 2008 fiscal year, Bradley Patterson, a retired Senior Fellow at the Brookings Institution, estimated the cost of running the White House was almost $1.6 billion. And that amount didnít include unpublished classified expenses.
The presidentís White house staff also comes at a steep price. In 2012, the White House reported its payroll grew from $37 million in 2011 to $37.8 million. The list includes 468 names. 139 of which make more than $100,000 a year.
Number four Ė Secret Service access. Protecting the President takes a great deal of manpower. The agencyís budget this year is $1.6 billion. A portion of that will go toward protecting president while in office and for life.
And number five Ė Retirement plan. According to CNBC, President Obama will receive over $191,000 a year for life as soon as he leaves office.
A former presidentís net worth can grow substantially in retirement. After two terms in office, The Atlantic magazine reported Bill Clintonís net worth at around $40 million. The increase was due to numerous speaking engagements and book deals.
"Economics cannot answer such normative or prescriptive questions about how much of our market incomes, if any, should be transferred to poor families. This is a political question that can only be answered at the ballot box, or in some countries, at the point of a gun."