Plan Could Lower Reagans’ Tax Bill Despite Increased Wealth

The First Family’s net worth may have increased as much as $1 million since President Reagan took office, it was reported Tuesday, and the President’s personal income tax payments could drop $28,000 next year.

Money magazine said that the drop in tax payments would be possible if Congress accepts key aspects of the President’s tax reform proposal and if Nancy Reagan’s finances remain roughly the same.

But the June issue of the magazine, in an article “All the President’s Money,” emphasized that Reagan’s tax reform plan is not motivated by personal gain.

In examining their 1984 tax return, the magazine said that the Reagans are better off financially than four years ago and estimated the couple’s net worth at around $4.4 million. That figure is from $750,000 to $1 million higher than when Reagan took office in 1981.

The magazine said that the Reagans’ total income tax bill would fall $28,328, from $147,826 to $119,498.

The Reagans’ personal finances were assessed by Money after an examination of financial disclosure statements and tax returns since 1980. Dozens of professional experts and the manager of Reagan’s blind trust were consulted, officials said.

The magazine said the Reagans owe their millionaire status to California land dealings that span three decades. Their biggest asset is their mortgage-free 688-acre ranch near Santa Barbara, purchased for $526,000 in 1974, and now valued at between $1.75 million and $2.25 million.