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.
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.
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.
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.
This Tax Day and every day, I’m fighting to build an economy that rewards work — not wealth.
— President Biden (@POTUS) April 18, 2022
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.
I’m sick and tired of the super-wealthy and giant corporations not paying their fair share in taxes.
It’s time for it to change.
— President Biden (@POTUS) September 22, 2021
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”?