Skip to comments.Gingrich Used Payroll Tax Ploy Often Attacked By IRS
Posted on 01/24/2012 4:42:45 AM PST by SeekAndFind
Newt Gingrich avoided tens of thousands of dollars in Medicare payroll taxes in 2010 by using a technique the Internal Revenue Service has consistently and successfully attacked. Republican Presidential candidate Gingrich and his wife, Callista, treated only $444,327 of what they got from Gingrich Holdings. Inc. and Gingrich Productions as compensation to them, while reporting a whopping $2.4 million of their earnings from these corporations as profits or dividends. Medicare taxes are levied at a rate of 2.9% on an unlimited amount of compensation and self-employment income (say, from a consulting contract, speeches or a book) but not on profits from a business.
It appears that he is not paying his fair share of Medicare tax, Robert E. McKenzie, a partner in the Chicago law firm of Arnstein & Lehr LLP concluded, in an email to Forbes, after reviewing Gingrichs 2010 tax return. McKenzie, a past chairman of the Employment Tax Committee of the American Bar Association Tax Section and a member of the IRS Advisory Council, added: There are a multitude of cases where the IRS has successfully challenged the improper tax strategy of this candidate and his accountants. Service businesses are only allowed to distribute a fair return on investment from an S corp. as profits exempt from Medicare taxes. The remainder of profits must be paid as salary subject to a 2.9% Medicare tax levy.
Since Gingrich released his 2010 tax return Thursday night during the Republican debate, news coverage has focused on his hefty income tax ratehe paid tax equal to 31.5% of his adjusted gross income of $3.14 million.
(Excerpt) Read more at forbes.com ...
There's part of that old Chicago underground. Ya think?
The only relevant question here is whether or not Gingrich broke any tax laws. I (and millions of others) use every legal tax avoidance strategy at our disposal to pay as little taxes as possible, and I highly doubt the majority of GOP voters will see anything wrong with that. This type of thing may hurt him more in the general had it come out then, but highly unlikely to make an impact in the primary.
It appears that he is not paying his fair share of Medicare tax, Robert E. McKenzie, a partner in the Chicago law firm of Arnstein & Lehr LLP concluded,...”
That is an odd way to put it. Why not just say he has illegally avoided paying the correct amount of Medicare tax? or is is perhaps more complex and subject to interpretation than that?
Why couldn’t Michele Bachmann render an opnion on the Gingrich and Romney tax returns now? After, she is a former IRS Tax Attorney, as we heard innumerable times last summer and fall.
This reaading was sent via email to Forbes. The attorney is from a Chicago firm and I believe associated with Obama. Surprise!!
I was listening to NPR on my way to work this morning. Romney paid 14.5% the last two years in taxes. Gingrich paid 30%.
I don’t know what Obama paid.
Dude! You’re posting more threads without commenting, reading or replying to this thread.
What the hell??
What is your take on this article?
More cognitive dissonance from the left on how Conservatives are both overachievers and stupid. Former Speaker and History Professor stealthily navigates and evades tax laws on his own while earning millions. Bumbling George W masterminded the Twin Towers attack. Old Man Reagan was senile, yet brought down the Berlin Wall, traded arms for hostages, created AIDS to kill off undesirables, and so on.
How about journalism majors were the dumbest majors on campus. They didn’t even have to know algebra.
Mornin’ Laz! I was referring to the post-primary season.
Obama will sic the IRS on the GOP nominee, no matter who that is.
It’ll be worse for us if it’s Romney, simply because there’s more there.
Moreover, Obama would have a field day exploring the financial sins of Bain.
Gingrich might get winged. Romney would get hung on a lamppost.
I’ve been posting without commenting for YEARS. I WANT to hear people’s comments. If I have an opinion, I’ll give it.
But since you want my take, here it is -— THE FACT THAT OUR ACCOUNTANTS HAVE TO ADVISE US TO USE TRICKS AND PLOYS TO GET AROUND HAVING TO PAY MORE IS AN INDICTMENT, NOT OF THE TAX FILER, BUT OF OUR TAX LAWS ITSELF.
We are ALLOWING our politicians to use tax laws to do social engineering and THAT HAS TO END.
See? That’s all you had to say.
Slow down on the thread posting and leave some comments (or at least reply to some of the replies). This is give-and-take, not thread-dumping.
OK let’s just get down to the nuts and bolts of the issue; The Media and “keep it the same elite Republicans” want Newt out.....so to them (for now only) Newt is Bad and Romney is good! Their goal is to get Romney as the GOP then they will turn on him.......GO NEWT!
If Capone was being attacked by the IRS nowadays, I could find sympathy for him.
Let me see if I understand this correctly: the IRS puts this loophole into the tax code and then, with self - righteous indignation, complains whensomeone actually uses it?
Hey Media...... #sand
.........and Romney earns 22 million and pays 3 million in taxes.......and on and on!!
It's a way to hide the true number of people on welfare: you hire some of the least-illiterate welfare recipients and make them case workers and supervisors.
More anti-Gingrich propaganda. It’s gonna come hot and heavy until Romney safely has the nomination in the bag.
After last night, I don’t even know if I could vote for the guy... even against Obama.
Or the equivalent of the entire tax bill of 15 families (approx. 50K income) to pay for EACH full time government employee or welfare family. (I am sure I am grossly underestimating)
If this guy was my tax attorney I'd fire him.