Biden couple avoided paying taxes through S-corporations!

on . Posted in Election 2020

NEW YORK (PNN) - October 8, 2020 - Democrat presidential candidate Joe Biden and his wife Jill managed to dodge tax payments by setting up two S-corporations.

The Bidens funneled their income - worth millions of dollars - through these corporations to avoid paying income, Social Security and Medicare taxes.

An op-ed piece by Juniper Research Group CEO Chris Jacobs, published in The Wall Street Journal, explained how the Bidens managed to circumvent huge taxes. Tax returns obtained by the newspaper showed that the Biden couple earned about $13.3 million from book royalties and speaking fees in 2017 and 2018. This income was then declared as profits from CelticCapri Corp. and Giacoppa Corp., the two S-corporations they set up, Jacobs said.

While the Bidens did receive “salaries” from their two corporations amounting to nearly $750,000 - and they paid full taxes on that amount - it was only a drop in the bucket compared to the payroll tax for the remaining 95% of their total income received as tax-free distributions.

In a report from last year, Tax Policy Center senior fellow Steve Rosenthal called the Bidens’ move to classify their earnings from their consultancy and public speaking stints as profits “pretty aggressive”.

How did the Bidens use S-corporations to avoid paying huge taxes?

S-corporations pay employee shareholders in two ways - wages and distributions. Business owners who receive a salary from the company’s income need to pay a 15.3% self-employment tax for Social Security and Medicare.

Meanwhile, a distribution can be any amount reflecting the employee shareholder’s investment. Distributions are exempted from the 15.3% tax and are counted as the employee’s share of the corporation’s income.

The Internal Revenue Service (IRS) requires S-corporations to pay “reasonable compensation for services rendered” before distributions can be given to shareholders.

Furthermore, the IRS has mandated that the amount of reasonable compensation must not go beyond any amount directly or indirectly received by a shareholder.

The Bidens used this loophole to their advantage: The $750,000 they received as wages from their two S-corporations was still subject to tax, but the rest of their $13.3 million income was given out as tax-free distributions. The Bidens received reasonable compensation, alongside the rest of their income given out as distribution, which allowed them to skirt a larger income tax payment.

Criticism of Joe Biden’s tax avoidance strategy resurfaced once more after the Democrat presidential candidate’s campaign released an advertisement pointing out President Donald Trump’s $750 federal tax payment in 2016. The New York Times first reported Trump’s tax payment in a September 27 story, adding that he paid another $750 in federal taxes for 2017.

The president responded the next day, saying that the “fake news media” brought up “all sorts of nonsense” similar to the smear campaigns he experienced during the 2016 elections. He added that he was also entitled to “depreciation and tax credits” as his line of business centered on real estate development.

Aside from book deals and speaking engagements funneled to S-corporations to avoid huge taxes, Biden also receives substantial bribes to augment his income stream. Ukrainian gas company Burisma, where his son Hunter served as a board member, recently admitted in court that it paid the elder Biden $900,000 as a “lobbying lump sum”.

Eulogies

Eulogy for an Angel
1992-Dec. 20, 2005

Freedom
2003-2018

Freedom sm

My Father
1918-2010

brents dad

Dr. Stan Dale
1929-2007

stan dale

MICHAEL BADNARIK
1954-2022

L Neil Smith

A. Solzhenitsyn
1918-2008

solzhenitsyn

Patrick McGoohan
1928-2009

mcgoohan

Joseph A. Stack
1956-2010

Bill Walsh
1931-2007

Walter Cronkite
1916-2009

Eustace Mullins
1923-2010

Paul Harvey
1918-2009

Don Harkins
1963-2009

Joan Veon
1949-2010

David Nolan
1943-2010

Derry Brownfield
1932-2011

Leroy Schweitzer
1938-2011

Vaclav Havel
1936-2011

Andrew Breitbart
1969-2012

Dick Clark
1929-2012

Bob Chapman
1935-2012

Ray Bradbury
1920-2012

Tommy Cryer
1949-2012

Andy Griffith
1926-2012

Phyllis Diller
1917-2012

Larry Dever
1926-2012

Brian J. Chapman
1975-2012

Annette Funnicello
1942-2012

Margaret Thatcher
1925-2012

Richie Havens
1941-2013

Jack McLamb
1944-2014

James Traficant
1941-2014

jim traficant

Dr. Stan Monteith
1929-2014

stan montieth

Leonard Nimoy
1931-2015

Leonard Nimoy

Stan Solomon
1944-2015

Stan Solomon

B. B. King
1926-2015

BB King

Irwin Schiff
1928-2015

Irwin Schiff

DAVID BOWIE
1947-2016

David Bowie

Muhammad Ali
1942-2016

Muhammed Ali

GENE WILDER
1933-2016

gene wilder

phyllis schlafly
1924-2016

phylis schafly

John Glenn
1921-2016

John Glenn

Charles Weisman
1954-2016

Charles Weisman

Carrie Fisher
1956-2016

Carrie Fisher

Debbie Reynolds
1932-2016

Debbie Reynolds

Roger Moore
1917-2017

Roger Moore

Adam West
1928-2017

Adam West

JERRY LEWIS
1926-2017

jerry lewis

HUGH HEFNER
1926-2017

Hugh Hefner

PROF. STEPHEN HAWKING
1942-2018

Hugh Hefner 

ART BELL
1945-2018

Art Bell

DWIGHT CLARK
1947-2018

dwight clark

CARL MILLER
1952-2017

Carl Miller

HARLAN ELLISON
1934-2018

Harlan Ellison

STAN LEE
1922-2018

stan lee

CARL REINER
1922-2020

Carl Reiner

SEAN CONNERY
1930-2020

dwight clark

L. NEIL SMITH
1946-2021

L Neil Smith

JOHN STADTMILLER
1946-2021

L Neil Smith