The mainstream media is practically drooling over the recent New York Times story “exposing” President Trump‘s tax returns, while ignoring the fact that Biden and his family have committed far worse tax “sins”.
Over the years, former Vice President Joe Biden has used a series of loopholes in the tax code to avoid paying hundreds of thousands of dollars in taxes. This news was originally reported by the Wall Street Journal’s Chris Jacobs in an article titled “How the Bidens Dodged the Payroll Tax” on August 10th.
Jacobs exposed how the Biden family structured what is referred to as an “S-Corp” in a way that allowed them to avoid paying a large amount of their tax bill.
The Journal article goes into detail on how the Bidens were able to set up an S-Corporation and avoid more than a half million dollars in taxes.
“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’. ‘Our seniors and millions of Americans with disabilities are under enough stress without Trump putting their hard-earned Social Security benefits in doubt.’ 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. 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. They did so by classifying the income as S-corporation profits rather than taxable wages.
…According to the Urban Institute, a couple featuring one high earner and one average earner, retiring this year, will have paid a total of $209,000 in Medicare taxes during their working lives. The Bidens avoided paying nearly twice that much in Medicare taxes during two years. The maximum payroll tax affected by Mr. Trump’s suspension is $1,984—less than 1/250th of the amount the Bidens avoided in 2017-18. The Bidens didn’t avoid any Social Security tax, which applied only to the first $127,200 of income in 2017 and $128,400 in 2018. But they would under Mr. Biden’s tax plan, which would impose the 12.4% Social Security tax on income over $400,000; the same loophole he used in 2017-18 would shield him from his own tax. And how can Mr. Biden claim to protect Medicare and ObamaCare when he avoided more than $500,000 in taxes that fund the two programs? The media have largely ignored the Bidens’ accounting legerdemain, fixating on Mr. Trump’s tax returns instead. But at least the president isn’t looking to raise taxes on everyone else.”
CNBC’s Darla Mercado also discussed the subject back in 2019, explaining to her readers how to use the same loopholes the Biden family did to avoid paying their taxes.
“The former vice president and 2020 presidential contender and his wife Jill Biden reported about $10 million in income in 2017 from a pair of S-corporations, CelticCapri and Giacoppa. The two entities were paid for the couple’s book deals and speaking gigs. That mean any amounts the Bidens received as a distribution wasn’t subject to the 15.3% combined Social Security and Medicare tax. Here’s how it works. S-corporations pay their employee shareholders in two ways: wages and distributions.The S-corps reported another $3.2 million in income in 2018,” Mercado wrote.
The two S-Corporations used by the Biden family are named CelticCapri and Giacoppa, and the income generated through those corporations was not subject to payroll taxes, which fund Social Security and Medicare.
Even some members of the Democrat media are not happy with this hypocrisy. In 2019, the Intercept’s Ryan Grim noted that Biden has used Delaware corporation laws to hide his financial information from voters:
“The Bidens have used their home state’s financial privacy laws to shield his income from public view, by setting up two tax- and transparency-avoidance vehicles known as S corporations. He and his wife Jill Biden called them CelticCapri Corp. and Giacoppa Corp., respectively, and, according to the Wall Street Journal, have reported more than $13 million in profits the previous two years that weren’t subject to specific disclosure or self-employment taxes. As CNBC has described, money Biden made from book deals and speeches flowed into the S corporations and was then remitted to Biden and his wife as ‘distributions’ rather than salary. When money is funneled through an S corporation, the recipient doesn’t owe Social Security or Medicare taxes on it, nor can the source of revenue be traced. (In addition to the distributions, the Bidens drew relatively small salaries from the S Corporations: under half a million dollars, for which they owed self-employment taxes),” Grim wrote.
Even former President Obama disagrees with these tax avoidance methods, as his administration called for an end to the S-Corporation loophole.