Official tax records for the President and his family reveal Barrack and Michelle Obama donated $48,000 to their children in order to avoid paying tax on the money.
The official records also indicate President Obama has managed to end up on a lower tax bracket than his secretary, even though he earns eight times more.
Under Federal tax rules, the President and his wife were seperately each allowed to donate $12,000 to each of their two daughters – a total of $24,000 per child – and not pay tax on the money.
Obama has previously pledged to crack down on tax loopholes used by the wealthy.