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Biden Is Hiding a Dirty Secret on Page 13 of His Tax Return: He Didn't 'Pay His Fair Share' Again

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There he goes again.

President Joe Biden’s 2021 tax return shows he’s being a hypocrite when he complains about the wealthy not paying their “fair share” as he and first lady Jill Biden used a tax avoidance scheme.

They’ve been doing it for years.

As previously reported by The Western Journal, the Bidens used S corporations to shield the vast majority of their earnings from payroll taxes in 2017 and 2018.

The way it worked was rather than categorizing the income they made from book deals and speaking fees as income, the money was run through two S corporation as distributions, i.e., profits.

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The Bidens were back at it again this past tax year according to page 13 of their joint tax return.

By doing so, they avoided paying a 3.8 percent tax — the combined 2.9 percent Medicare payroll tax and the 0.9 percent Obamacare surcharge, as Christopher Jacobs explained in The Federalist.

Additionally, Jill Biden skirted paying 15.3 percent in Social Security tax.

Do you think Joe Biden is a hypocrite for apparently avoiding taxes he owes?

So according to the Treasury Department, Biden didn’t “pay his fair share.”

Here’s how they did it.

The couple wrote off $61,995 in corporate profits.

It broke down as $29,234 coming from Joe Biden’s CelticCapri Corporation and $32,761 from Jill Biden’s Giacoppa Corporation.

Jacobs noted that due to Biden’s salary as president, he paid all he owed in Social Security taxes because he far exceeded the wage cap of $142,800 for tax year 2021.

In other words, no Social Security tax is owed on income above $142,800.

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Presidents make $400,000 per year.

However, there is no salary cap for the Medicare tax or the Obamacare tax, so Biden should have paid those taxes on his $29,234 listed as corporate profits, Jacobs argued.

As for Jill Biden, she earned roughly $67,000 as a teacher at Northern Virginia Community College, meaning she did not reach the $142,800 pay cap and owed Social Security on her nearly $33,000 in what was characterized as corporate profits.

By Jacob’s calculations, the Bidens owed the Treasury an additional $6,100 — approximately.

Further, for the tax years 2017 to 2020, he believes they avoided paying an additional $517,000 in Medicare and Obamacare taxes.

The Bidens routed more than $13 million through their S corps while claiming less than $800,000 as salary income, The Wall Street Journal reported.

The Internal Revenue Service requires S corps to pay “reasonable compensation” to employee shareholders before making non-wage distributions to them.

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.

Of course, the Bidens’ tax avoidance scheme, employed again in 2021, comes after a year of the president decrying wealthy Americans not paying their “fair share” in taxes.

Mr. President, how about looking at the man in the mirror and making that change before complaining about the wealthy not paying their “fair share”?

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Randy DeSoto has written more than 2,000 articles for The Western Journal since he joined the company in 2015. He is a graduate of West Point and Regent University School of Law. He is the author of the book "We Hold These Truths" and screenwriter of the political documentary "I Want Your Money."
Randy DeSoto is the senior staff writer for The Western Journal. He wrote and was the assistant producer of the documentary film "I Want Your Money" about the perils of Big Government, comparing the presidencies of Ronald Reagan and Barack Obama. Randy is the author of the book "We Hold These Truths," which addresses how leaders have appealed to beliefs found in the Declaration of Independence at defining moments in our nation's history. He has been published in several political sites and newspapers.

Randy graduated from the United States Military Academy at West Point with a BS in political science and Regent University School of Law with a juris doctorate.
Birthplace
Harrisburg, Pennsylvania
Nationality
American
Honors/Awards
Graduated dean's list from West Point
Education
United States Military Academy at West Point, Regent University School of Law
Books Written
We Hold These Truths
Professional Memberships
Virginia and Pennsylvania state bars
Location
Phoenix, Arizona
Languages Spoken
English
Topics of Expertise
Politics, Entertainment, Faith




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