The Bidens used S corporations to prevent a large portion of their earnings from their payroll taxes in 2017 and 2018, according on tax documents obtained by The Western Journal.
The IRS classified the money they earned from book deals and speaking fees as income, instead of classifying it as revenue. The cash was run through two S corporation distributions, i.e., profits.
According to page 13 of their joint tax return, the Bidens did it again this past tax year. As a result, they avoided paying a 3.8 percent tax — the combined the 0.9 percent Obamacare surcharge, the 2.9 percent Medicare payroll tax and as Christopher Jacobs pointed out in The Federalist.
Jill Biden also avoided paying Social Security tax at a rate of 15.3 percent. As a result, according to the Treasury Dept., Biden “failed to pay his fair share.”
Here’s how they made their money. The couple deducted $61,995 in corporate income. It came to $29,234 from Joe Biden’s oddly named CelticCapri Corporation and $32,761 from Jill’s Giacoppa Corporation.
Biden, according to Jacob’s, paid all he owed in SS taxes because he well exceeded the wage cap of $142,800 for 2021 as president. In other words, no Social Security tax is due on earnings exceeding $142,800. Presidents earn $400,000 per year.
However, because no salary ceiling applies to the Obamacare tax or the Medicare tax, Biden should have paid those taxes on his claimed $29,234 in corporate profits, according to Jacobs.
Jill Biden made roughly $67,000 as a teacher at a community college, which means she did not surpass the $142,800 pay ceiling and owed Social Security on her approximately $33,000 in what was called corporate profits.
According to Jacob’s calculations, the Bidens owed the Treasury another $6,100 or so.
The total amount they avoided paying in Medicare and Obamacare taxes, Jacob believes, was $517,000 in tax years 2017 to 2020.
The Bidens earned more than $13 million through their S corporations while claiming less than $800,000 in salary income, according to The Wall Street Journal.
Before making non-wage distributions to employee shareholders, the IRS requires S corporations to pay “reasonable remuneration” to employee stockholders.
So in other words, Joe Biden did not pay his fair share!
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