Posted on 09/29/2020 8:20:14 AM PDT by Steve1999
Joe Biden and his wife Jill have been caught funneling millions of dollars of their income through shady S-corporations to avoid paying hundreds of thousands in taxes, according to reports. The bombshell has emerged just days after Joe Biden, the Democrat presidential nominee, attacked President Donald Trump over his taxes. According to a report by the Wall Street Journal’s Chris Jacobs, former Vice President Biden used a series of tax code loopholes to avoid paying taxes on millions of dollars of his family's income over the years.
(Excerpt) Read more at nnettle.com ...
Trump will hit him with all of this, plus hunter, plus hiding plus everything else but the kitchen sink.
Can’t wait.
Oh, what an ugly door the ny times inadvertently opened.
That’s only one source of Biden income he cheated on (book deals and speaking fees).
Biden has many, many sources of income......Hunter’s kickbacks to his dad from his own dirty deals must be huge.
The Biden Crime Family Syndicate are all cashing in on the taxpayers’ dime.....and cheating the govt for who knows how much.
Yeah but Trump is the evil tax evader right? So, I guess from now on I’ll never try to reduce my tax burden because, well the country need my money. Right? Being patriotic and all. :-)
Can someone explain why one S-corp is “shady” while another is simply good business practice?
There is plenty to go after Joe Biden and his family. There are zero shady loop holes in the tax code. There is the tax code and it is law. Reasonable and unreasonable people adhere to that law. There are always different interruptions as to the specifics of any law and that is where the courts become involved - except that legal process is often subverted by the IRS. Please focus the many misdeeds of Joe Biden and family or focus on the many problems with tax code and due process relating to the IRS, e.g., you are guilty until you prove your innocence. A lack of focus diffuses any attack on Biden. Taxes are a weak attack, just as in the case of PDJT. No one on our side is changing their vote because of the NY Slimes Trump tax return article. No one on Biden’s side is changing their vote due to his S-corps. We need to get out of this mushy center and focus on the most hideous crimes that Biden has committed.
It is not that the S corps are shady, it’s that if all the corporate revenue comes from personal services performed by Biden, then that money, after expenses, has to be paid out to Biden on a W-2. If not, you have to show capital assets that are earning the income.
I have an S Corp and I used it to protect income over a “normal” salary amount.
Now that I am getting closer to social security age, the “normal” salary has been increasing substantially.
Hey, clickbait, you didn’t write this. Why make it clickbait?
***********
Bidens used S-corps to avoid paying hundreds of thousands in payroll taxes
News Thud
Joe Biden and his wife Jill have been caught funneling millions of dollars of their income through shady S-corporations to avoid paying hundreds of thousands in taxes, according to reports.
The bombshell has emerged just days after Joe Biden, the Democrat presidential nominee, attacked President Donald Trump over his taxes.
According to a report by the Wall Street Journal’s Chris Jacobs, former Vice President Biden used a series of tax code loopholes to avoid paying taxes on millions of dollars of his family’s income over the years.
In the Aug. 10 article, titled “How the Bidens Dodged the Payroll Tax,” Jacobs details how the Bidens structured “S-corps” to avoid paying hundreds of thousands of dollars in taxes they would have otherwise owed.
“Joe Biden responded to President Trump’s partial suspension of payroll-tax collections with a statement calling it the ‘first shot in a new, reckless war on Social Security,’” Jacobs wrote.
“‘Our seniors and millions of Americans with disabilities are under enough stress without Trump putting their hard-earned Social Security benefits in doubt’,” Jacobs quoted Biden.
jill and joe biden set up s corps to avoid paying tax on millions of dollars of income
© press
Jill and Joe Biden set up S-corps to avoid paying tax on millions of dollars of income
“Mr. Biden’s objections might be more persuasive had he and his wife, Jill, not gone out of their way to avoid funding seniors’ entitlement benefits,” Jacobs continued.
“According to their tax returns, in 2017 and 2018 the Bidens and his wife Jill avoided payroll taxes on nearly $13.3 million in income from book royalties and speaking fees,” he added.
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“They did so by classifying the income as S-corporation profits rather than taxable wages.”
Of the nearly $13.3 million the couple took during the 2017 and 2018 tax years, they claimed just $750,000 in income.
The other 94 percent of the money passed through the corporations as direct distribution to the Bidens, preventing it from being subject to the 15.3 percent combined Social Security and Medicare tax rate, according to CNBC.
The Internal Revenue Service requires S -corps to pay “reasonable compensation” to employee shareholders before making non-wage distributions to them, according to The Western Journal.
The nature of the business dictates what should be characterized as income and what can be a distribution to an employee shareholder as money generated from the business.
“But to the extent gross receipts are generated by the shareholder’s personal services, then payments to the shareholder-employee should be classified as wages that are subject to employment taxes [Social Security and Medicare],” IRS guidance reads.
Such is clearly the case with the Bidens.
The companies made money through their speaking fees and book royalties and apparently little, if anything, else.
Most if not all the compensation the couple received from the S-corps should have been in the form of income, subject to employment taxes.
Even left-wing journalist Ryan Grim, with The Intercept, during the heat of the Democratic primary race last year, highlighted the Bidens’ use of Delaware corporate law to shield their income from public scrutiny.
The Biden campaign was quick to grab on to a New York Times story claiming Trump paid only $750 in personal income taxes the year he won the presidency in 2016 with an attack ad.
In response to the Times story, the president tweeted Monday morning, “The Fake News Media, just like Election time 2016, is bringing up my Taxes & all sorts of other nonsense with illegally obtained information & only bad intent.”
The Fake News Media, just like Election time 2016, is bringing up my Taxes & all sorts of other nonsense with illegally obtained information & only bad intent. I paid many millions of dollars in taxes but was entitled, like everyone else, to depreciation & tax credits.....
— Donald J. Trump (@realDonaldTrump) September 28, 2020
.....Financial Statements, from the time I announced I was going to run for President, showing all properties, assets and debts. It is a very IMPRESSIVE Statement, and also shows that I am the only President on record to give up my yearly $400,000 plus Presidential Salary!
— Donald J. Trump (@realDonaldTrump) September 28, 2020
“I paid many millions of dollars in taxes but was entitled, like everyone else, to depreciation & tax credits,” he added.
Due to the nature of Trump’s business being primarily in real estate development, tax law does provide for significant tax credits, deductions, and depreciation to encourage entrepreneurs to take risks.
Trump’s oldest son, Donald Trump Jr., also addressed the Times story in an appearance on “Fox & Friends” on Monday, pointing to the development of the Trump International Hotel Washington, D.C., as an example for which his father received tax credits.
“My father’s paid tens of millions of taxes,” Trump Jr., said.
“If he does things in certain years where you get depreciation, where you get write-off, where you get historical tax credits, like we did when we took on the risk of building the Old Post Office in DC.”
trump slammed the fake news media for reporting on his taxes with bad intent
© press
Trump slammed ‘The Fake News Media’ for reporting on his taxes with ‘bad intent’
The Old Post Office Building, originally constructed in the 1890s not far from the White House, reopened as a newly renovated Trump hotel in October 2016.
“That was literally a government contract,” Trump Jr. recounted.
“We bid against every hotel company in the world.
“Historical tax credits that you use to offset tax payments for taking the risk to build that.
“That was done under the Obama administration.
“It literally took an act of Congress to get it done.”
.@DonaldJTrumpJr is spot on.@realDonaldTrump has actually created jobs, while Joe Biden has just talked about it for 50 years as a career politician. pic.twitter.com/7dKFPR2d0k
— Ronna McDaniel (@GOPChairwoman) September 28, 2020
The president’s son further suggested that while his father’s federal income tax due may be low any given year, he still had to pay property taxes and payroll taxes (Social Security and Medicare) among others.
Trump Jr. also pointed out that his father put “thousands and thousands of people to work on an annual basis” through his various business ventures.
Those people pay taxes too.
The Times’ big scoop appears to be that a businessman took advantage of business tax deductions. And?
Of far greater service to the public would be reporting on the tax avoidance schemes of the Bidens and the shady dealings of their son Hunter Biden.
By the way, do something useful and donate something and stop posting clickbait.
https://freerepublic.com/donate/
I’m not sure Biden did anything illegal here. But the optics are really bad.
This is noise.
Trump wins tonight by painting Joe as weak.
The middle won’t vote for a weak guy.
stolen from WSJ article from August 10:
https://archive.is/QgcHn#selection-2191.125-2191.214
BUT, what the bidens did was perfectly legal and is done all the time by wealthy people with tax accountants smart enough to do it:
“They did so by classifying the income as S-corporation profits rather than taxable wages.”
“Can someone explain why one S-corp is “shady” while another is simply good business practice?”
it’s a BS clickbait article stolen from 6 week old WSJ article ... using an S-corp like this is perfectly legal ...
what the bidens did was perfectly legal and is done all the time by wealthy people with tax accountants smart enough to do it ...
It's done by not so wealthy people as well, but the dollar figures just are not as great. Nothing wrong with it.
S-corp structure is not a shady loophole.
I agree, I was part owner of an S corp at one time and know it’s advantages.
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