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Commentary By Randy DeSoto | Published September 28, 2020 at 3:18pm

While the Joe Biden campaign was quick to leap on a New York Times story that President Donald Trump paid a small amount in personal income taxes in recent years, it is clearly a case of the pot calling the kettle black.

Joe and his wife Jill Biden funneled millions in income through a pair of S corporations they set up in Delaware as a way to circumnavigate paying Social Security and Medicare taxes, according to an August opinion article in The Wall Street Journal.

Of the nearly $13.3 million the couple took in primarily through speaking fees and book royalties during the 2017 and 2018 tax years, they claimed just $750,000 in income.

The other 94 percent of the money passed through the corporations as a direct distribution to the Bidens, preventing it from being subject to the up to 15.3 percent combined Social Security and Medicare tax rate, according to CNBC.

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.

READ THE REST OF THE COMMENTARY AT https://www.westernjournal.com/bidens-used-s-corps-avoid-paying-hundreds-thousands-payroll-taxes/

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