The Bidens Avoided Paying Huge Money in Payroll Taxes, Dodging Taxes by Exploiting The ‘S Corporation Loophole’ WSJ Reports
[Opinion] Remember, ‘Projection’ is the skeleton key to understanding what the Democrats are doing. If they are accusing their opponents of something, you can bet your rear end that they are elbows deep in something of the same vein, just 10x worse. Today’s example of the media running defense for Biden by applying pressure to his opponent is quite ironic actually …
Steven Ahle – The NYT tries to smear President Trump on his taxes. At the same time, they avoid talking about Joe Biden and his dodging of potential taxes.. However, would the NYT ignore it if Biden were a Republican?
Of course not.
Biden used the so called ‘S-Corporation loophole’ to avoid paying payroll taxes for his employees.
Back in August, the Wall Street Journal’s Chris Jacobs exposed how Biden uses the ‘S-Corporation loophole’ to avoid paying certain taxes. Jacobs wrote, “How the Bidens Dodged the Payroll Tax.”
In it Jacobs explained how Biden avoided half a million in taxes using the loophole.
“Joe Biden responded to President Trump’s partial suspension of payroll-tax collections with a statement. He called it the ‘first shot in a new, reckless war on Social Security. Our seniors and millions of Americans with disabilities are under enough stress. Trump is putting their hard-earned Social Security benefits in doubt.’
According to their tax returns, in 2017 and 2018 the Bidens and his wife Jill avoided payroll taxes on nearly $13.3 million. based on income from book royalties and speaking fees. They did so by classifying the income as S-corporation profits rather than taxable wages.”
According to the Urban Institute, a couple featuring one high earner and one average earner, retiring this year, will have paid a total of $209,000 in Medicare taxes during their working lives. The Bidens avoided paying nearly twice that much in Medicare taxes for two years.
The maximum payroll tax affected by Mr. Trump’s suspension is $1,984—less than 1/250th of the amount the Bidens avoided in 2017-18. The Bidens didn’t avoid any Social Security tax, which applied only to the first $127,200 of income in 2017 and $128,400 in 2018.
But they would under Mr. Biden’s tax plan, which would impose the 12.4% Social Security tax on income over $400,000. That’s the same loophole he used in 2017-18 would shield him from his own tax. And how can Mr. Biden claim to protect Medicare and ObamaCare when he avoided more than $500,000 in taxes that fund the two programs?
The Wall Street Journal is not the only site that has pointed out how Biden avoided at least a half a million in taxes. CNBC’s Darla Mercado in 2019 wrote about it. She explained how you can use the same loophole as Biden to avoid paying taxes:
The Bidens have used their home state’s financial privacy laws to shield his income from public view, B setting up two tax- and transparency-avoidance vehicles known as S corporations. He and his wife Jill Biden called them CelticCapri Corp. and Giacoppa Corp., respectively. And, according to the Wall Street Journal, have reported more than $13 million in profits the previous two years. That weren’t subject to specific disclosure or self-employment taxes.
As CNBC has described, money Biden made from book deals and speeches flowed into the S corporations. And was then remitted to Biden and his wife as ‘distributions’ rather than salary. When money is funneled through an S corporation, the recipient doesn’t owe Social Security or Medicare taxes. Nor can the source of revenue be traced. (In addition to the distributions, the Bidens drew relatively small salaries from the S Corporations. Under half a million dollars, for which they owed self-employment taxes.)”
I hope Trump is paying attention. Just in case Biden tries to bring up his taxes at the debate.