[TheRobb7]

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

[kenmcg]

.........and Romney earns 22 million and pays 3 million in taxes.......and on and on!!

[McGruff]

So you are for people paying more taxes than they legally have to? Not very conservative of you.

[Pravious]

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.

[GVnana]

It appears that he is not paying his fair share of Medicare tax...(sniff, sniff)

If this guy was my tax attorney I'd fire him.

[PapaBear3625]

Since Gingrich released his 2010 tax return Thursday night during the Republican debate, news coverage has focused on his hefty income tax rate—he paid tax equal to 31.5% of his adjusted gross income of $3.14 million.

This is what makes this a non-starter. Newt paid close to a $million in taxes. People can wrap their heads around that. Meanwhile, Romney paid 15% effective tax rate, and has money in offshore accounts. That does not fly well with middle class voters.

[babygene]

“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.”

The real truth is that you must take a reasonable salary and can not take all of your income as dividends and distribution of profits. In this type of business, if the s corp owns the intellectual property - which I’m sure it did in Newt’s case, a 300K salary was probably fine.

[Daveinyork]

The IRS is on a mission to catch people doing this, and they have tried to close it off. In the 1990’s the IRS proposed a regulation that would have subjected the distributions from S corporations to self employment tax. The speaker of the house sent them a stern rebuke, told them that Congress passes tax laws, not the IRS. That speaker was none other than Newt Gingrich, who seems to have a special affection for that particular loophole.

[Petrosius]

The author is forgetting about corporate tax. The income Gingrich claims as salary can be claimed as an expense to the corporation and thus reduce its corporate income tax. His income claimed as dividends or capital gains is not counted as a business expense. It is thus taxed twice: once as income to the corporation and then a second time as personal income to Mr. Gingrich.

[Carry_Okie]

ANYONE with political ambitions ought to have the good sense to order his tax accountant to keep him out of any controversy. It's just not worth the extra money.

[Sequoyah101]

BFD. He is paying more medicare tax than 99% of the people and will receive less in benefit.

Often disliked by the IRS... sure, just another pound of flesh for them to extort from legal tax paying processes.

[Oldeconomybuyer]

So Mr. Gingrich followed the law and paid all taxes due.

Meanwhile, Obama pisses away $550 million on Solyndra’s campaign bundlers, which equals the total amount of federal taxes paid by 45,833 average Americans ($60K income at 20% tax rate). Or, the total amount of taxes paid by 550 Newt Gingrich’s.

[Tribune7]

McKenzie, a past chairman of the Employment Tax Committee of the American Bar Association Tax Section and a member of the IRS’ Advisory Council,

Wonder you he voted for in '08 (and '04 and '00 etc)

Nah, I really don't.

This is chickensh*t but let's get it out now.

[Future Useless Eater]

The (MSM/ GOP elite/ Romney camp) is desperate to throw more mud that will stick, as soon as possible....

...because Gingrich is again in the lead.

WHY is this BREAKING news??

[sportutegrl]

Let me see if I can explain it to the ‘media’: Irony is when you are a pro tax ‘n spend DemonRat and you avoid paying your own taxes. Irony is not when a conservative anti taxer practices what he preaches.

[Whats-wrong-with-the-truth]

So?.... I'm still not going to vote for the RINO Romney.

In my opinion mittens and his little band of progressive Republicans can sit and spin. My view is... If walks like a liberal, if it looks like a liberal and if it acts like a liberal ("Romney's record?") IT'S A LIBERAL.
Notice how the liberal author of this article never mentions those in the democrap party that cheat on or pay NO taxes at all (Daschle, Geithner, Kirk,...)? and frankly... Who cares what the IRS doesn't like. I for one don't like the IRS.

JMHO

[PghBaldy]

Al Gore or John Kerry did this too, IIRC. Can’t remember whic h.

[kevao]

The implication is that Newt did something wrong, when if fact what he did is perfectly legal. Nice try, Forbes.

[kcvl]

Janet Novack is Manager of the Washington Bureau, Forbes

I’m the Washington D.C. bureau chief for Forbes and have worked in the bureau for more than two decades. In recent years, I've spent much of my time reporting about taxes -- tax policy, tax planning, edgy tax shelters, tax evasion, wacky tax credits, and Congressional tax malpractice. (Think AMT and the lapsed estate tax.) I also write about retirement policy and planning.

I'm Known For...

Exposing the tax games of billionaires. A cover story with the provocative title, "How To Cheat On Your Taxes".

[tomkat]

This Forbes scribe's having chosen fellatio is rather clear here via this screed.
Mystery lingers as to which side of the same coin is the intended target of her ministrations . . Ø (d) or ø (r),