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Economy Biden wants to increase your taxes, but owes 500k in back taxes

Discussion in 'The War Room' started by cottagecheesefan, Sep 24, 2021.

  1. cottagecheesefan Gold Belt

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    Seems he attempted to use a loop hole to avoid taxes on speeches and book sales. Taxes that would go to fun Medicare and Obamacare

    "Banks said the report indicated that Biden improperly used "S corporations" while he and first lady Jill Biden raked in over $13 million on speaking fees and book sales in 2017 and 2018, but counted less than $800,000 of it as a salary that could be taxed for Medicare."

    "But when the Bidens released their tax returns during his presidential campaign, they showed that the couple saved up to $500,000 by avoiding the 3.8% self-employment tax with the S corporations."

    In before "oh the right likes taxes, returns being public, and the IRS now"

    https://www.google.com/amp/s/www.fo...-owe-up-to-500k-in-back-taxes-report-says.amp

    https://www.google.com/amp/s/www.da...00-taxes-IRS-avoiding-pay-Medicare-years.html
     
  2. Tairy Hesticles Purple Belt

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    It's not confirmed yet, is it?

    I can't say I'm surprised though. Guy's a fucking sleezebag.
     
  3. solmu Purple Belt

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    He probably just forgot
     
  4. cottagecheesefan Gold Belt

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    Well, his taxes are already there for congress to be seen... but not officially confirmed as of yet
     
  5. machidafan99 Gold Belt

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    Blame all the idiots that voted for higher taxes because Trump hurt their feelies.
     
  6. woodguyatl Black Belt

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    If he broke the law he should pay the taxes and fines. If he broke the law on purpose he would not have made the taxes public.
     
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  7. Revolver you sound poor

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    All S Corps are required by the IRS for their officers/owners to pay themselves a reasonable wage according to their industry. The rest can flow through and avoid being taxed for self employment. I don’t feel like digging through the details but just compare his W2 to what his K-1 is and you can figure out if they are trying to avoid SE tax. Book sales don’t really come off to me as self employment income anyways either.

    But maybe congress should make non passive S Corps subject to the same tax rules as LLC’s.
     
    Last edited: Sep 24, 2021
    Lead, ocean size and Lubaolong like this.
  8. I Am Legion Silver Belt

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    Yeah, I use an S Corp but it is an actual business. The money has to be made from said business. You cant use them for personal speaking engagements or book sales. What he did is illegal and will have to pay back taxes.
     
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  9. ShadowRun error Platinum Member

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    "it's time people pay there FAIR share of taxes " ~ Biden
     
  10. Fluffernutter Gold Belt

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    I have a feeling this story will go away by the time Psaki conducts her daily briefing.
     
  11. Matsukaze Green Belt

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    Oh look a new variant ..
     
  12. nostradumbass Double Yellow Card Double Yellow Card

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    It's far more shocking that mush mouth Biden got millions of dollars for speaking. A guy who can't speak gets millions to speak, and his son got millions from Ukrainian energy companies with 0 experience before becoming an "artist" whose paintings cost more than original Picassos, his brother made millions on a contract to build houses in Iraq, and his other brother who isn't even a lawyer used his connections to get clients for a law firm. What a totally not corrupt family.
     
  13. ShadowRun error Platinum Member

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    It really writes itself ....

     
  14. calavera2 Purple Belt

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    Biden should pay his taxes and Trumpers should stfu because no one cares about their bleating and shedding of crocodile tears...I mean really you guys have 0 shame
     
    4daLuLZ likes this.
  15. SmilinDesperado Gold Belt

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    You avoid this kind of trouble by just not releasing your tax records, Sleepy Joe.

    <TheDonald>
     
  16. panamaican Senior Moderator Staff Member Senior Moderator

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    Did anyone else read the Congressional Research Services memo attached to this?

    You can find a copy here: https://www.dailymail.co.uk/news/ar...00-taxes-IRS-avoiding-pay-Medicare-years.html

    The memo doesn't say anything about if Biden violated the rule. It lays out the issue with S corps and the difference between adequate compensation for services rendered vs. distributions to shareholders. The tax question is if the $800k in salary is reasonable compensation for the services provided to the S corp. It doesn't matter if the rest of the money was classified as a distribution so long as the salary and the work provided align.

    Nothing in the available information I've seen tells us what the Bidens did for their salary so it's very difficult to determine if this is a violation. But, on a general level, speakers don't have their fees treated like salary, there might be a baseline salary to keep the speaker tied to the organization and then the majority of the fee is treated like like distributions

    Is it a tax loophole, sure, but that's a big jump from "tax loophole" to tax violation.
     
  17. HereticBD Plutonium Belt

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    I think the point is that Mr. "Fair Share" shouldn't be taking advantage of tax loopholes to secure six figures he doesn't need.
     
  18. TheJewBear Green Belt

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    Biden does not want to increase my taxes. My taxes stay the say because I remain in the same income bracket.
     
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  19. panamaican Senior Moderator Staff Member Senior Moderator

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    No, that's not the point.

    It's a tax loophole in how the IRS classifies salary vs. distribution. It's a not a tax loophole just because. Abusing this tax loophole would be artificially categorizing work done for the S Corp as a distribution when it could easily be classified as salary. Or artificially lowering salary to skew more of the revenue towards distributions.

    But things like speaking fees aren't salary by the very nature of the work itself. Let me use an example to explain the tax elements. Let's say the Bidens don't actually do the speaking, instead they hire Barack Obama to speak at an event. The Bidens job is to arrange speaking arrangements for celebrities, like Obama. For that work, they are paid a salary.

    The Event pays the S Corp a fee - one portion of the fee is the S corp's revenue, the other portion of the fee covers Obama's fee for speaking.

    Obama's fee is not salary - it's independent contractor work. Meanwhile the S Corp has to pay it's employees out of their portion of the fee. But a salary isn't a percentage, it's going to be a fixed number negotiated in advance, $100k or $50k, or something like that. So, if the Obama speaks for $100k per speech, the Bidens get the same amount of money as if Obama speaks for $1,000,000. Neither the Bidens nor the Obamas would be abusing the tax system by not categorizing Obama's speaking fees as "salary".

    So what happens when the S corps portion of the fee exceeds it's employee costs? That excess is distributed to the S Corp owners as a "distribution".

    Replace Obama with Biden and you have the existing scenario. Biden isn't using a tax loophole to lower his salary just because he's collecting a distribution and a salary. The tax loophole that is alluded is that the IRS lets the owners of S corps collect salaries and distributions. But the salaries have to be reasonable. "Reasonable" is a 2 way street. You can't underpay the salary but you shouldn't be overpaying it either. So, a reasonable salary is going to leave a large distribution if the corporate revenue is high enough.

    To say that someone is taking advantage of this tax loophole, you'd have to start with explaining why the salary is wrong. And it's listed as $800k in salary but there's no mention of what the job description is. Without that minimal piece of information, it's like hearing that your doctor is getting paid $400k and then alleging that his salary is inaccurate without knowing what type of doctor he is, how much he works, etc.

    The allegation here is that Biden is using a tax loophole to avoid paying Medicare tax on his salary but that would presume that his salary was supposed to be $13 million dollars just because the revenue earned by the company is $13 million and that's not how any business owner's salary works.
     
  20. Rational Poster Actually the Best Poster

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    Doesn't using tax loopholes make him smart?
     

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