Biden called out about using S Corporations to pay less taxes!

[Ordinary Guy]

Multimillionaire’ Biden’s use of ‘S corporations’ draws scrutiny by Republican who sees hypocrisy

Rep. Jim Banks, the chair of the Republican Study Committee, lashed out at Biden for calling on the country’s richest to pay their 'fair share' after S corp revelation

It is not uncommon for wealthy individuals and politicians to try and preserve their income by using what some call tax loopholes, but Republicans have called out what they see as hypocrisy from the president who came out in support of proposals to tax billionaires. On Friday, the president told reporters, "I just think it’s about just paying your fair share, for Lord’s sake."

Rep. Jim Banks, the chair of the Republican Study Committee, lashed out at Biden for calling on the country’s richest to pay their "fair share" to help finance his $2.1 trillion infrastructure plan.

He said in 2017, "multi-millionaire Joe Biden skirted his payroll taxes—the very taxes that fund Medicare and Obamacare. According to the criteria CRS provided to my office, he owes the IRS and the American people hundreds of thousands of dollars in back taxes. Every American should know about Joe Biden’s hypocrisy."

Banks said the report indicated that Biden improperly used "S corporations" while he and his wife 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.

The CRS report may be new, but the Wall Street Journal reported on Biden’s use of the "tax-code loophole [President] Obama tried to plug."

https://www.foxbusiness.com/politics...L%2C%20ADAMANT

 

[Dekster]

Not defending Joe, but I don't think you have to pay FICA on book royalties if being a writer is not your primary profession. No idea about the speaking side of it.

 

[Ordinary Guy]

we are friends with a book writer and she has to pay it according to her

Not defending Joe, but I don't think you have to pay FICA on book royalties if being a writer is not your primary profession. No idea about the speaking side of it

 

[Uncensored2008]

Not a Biden fan, but there is nothing illegal, immoral, or untoward about S Corporations. An S Corp isn't a loophole or dodge.

 

[Uncensored2008]

Not defending Joe, but I don't think you have to pay FICA on book royalties if being a writer is not your primary profession. No idea about the speaking side of it.

Not correct. Royalties are still income and are taxable.

 

[Ordinary Guy]

Not a Biden fan, but there is nothing illegal, immoral, or untoward about S Corporations. An S Corp isn't a loophole or dodge.

it certainly is if only used to avoid taxes, at least by democrat definition

 

[Moonglow]

How dare Biden try to use a Subchapter "S" corporate structure when clearly the correct move is to create and LLC to receive the income. Establish it in Kansas or Florida and it's tax free for the state also.

 

[Dekster]

we are friends with a book writer and she has to pay it according to her

She has to pay if she is a writer by trade. It is one of those areas where there is nuance. If you are a welder and decide to write a book about welding or the Civil War, you do not have to pay FICA on royalties. If you are a writer who decides to write a book about welding of the Civil War, you do have to pay FICA at the self-employment rates on the royalties.

 

[Moonglow]

it certainly is if only used to avoid taxes, at least by democrat definition

You have provided no federal code annotated cases to prove you have nothing more to offer that your own version of tax evasion, you surely know what that is since Trump and Trump jr are both going to court over it.

 

[Blues Man]

Multimillionaire’ Biden’s use of ‘S corporations’ draws scrutiny by Republican who sees hypocrisy

Rep. Jim Banks, the chair of the Republican Study Committee, lashed out at Biden for calling on the country’s richest to pay their 'fair share' after S corp revelation

It is not uncommon for wealthy individuals and politicians to try and preserve their income by using what some call tax loopholes, but Republicans have called out what they see as hypocrisy from the president who came out in support of proposals to tax billionaires. On Friday, the president told reporters, "I just think it’s about just paying your fair share, for Lord’s sake."

Rep. Jim Banks, the chair of the Republican Study Committee, lashed out at Biden for calling on the country’s richest to pay their "fair share" to help finance his $2.1 trillion infrastructure plan.

He said in 2017, "multi-millionaire Joe Biden skirted his payroll taxes—the very taxes that fund Medicare and Obamacare. According to the criteria CRS provided to my office, he owes the IRS and the American people hundreds of thousands of dollars in back taxes. Every American should know about Joe Biden’s hypocrisy."

Banks said the report indicated that Biden improperly used "S corporations" while he and his wife 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.

The CRS report may be new, but the Wall Street Journal reported on Biden’s use of the "tax-code loophole [President] Obama tried to plug."

https://www.foxbusiness.com/politics...L%2C%20ADAMANT

He didn't avoid any taxes since he paid taxes on any and all profits on his personal tax return.

The S corp and the LLC are both LEGAL entities meant to make it easier for small businesses to incorporate. Since these entities aren't traded publicly and do not pay dividends there is no need to use the C corp entity.

Owners of an S corp pay taxes on all profits of the business via their personal tax returns and the form K1.

 

[Ordinary Guy]

He didn't avoid any taxes since he paid taxes on any and all profits on his personal tax return.

The S corp and the LLC are both LEGAL entities meant to make it easier for small businesses to incorporate. Since these entities aren't traded publicly and do not pay dividends there is no need to use the C corp entity.

Owners of an S corp pay taxes on all profits of the business via their personal tax returns and the form K1.

at a very reduced rate according to an accountant this morning

 

[Papageorgio]

I have been saying this for a long time, the rich write tax laws that help the rich. Congress, Biden was a member of for decades helped write his tax breaks. I don't blame people for taking all the tax breaks that are available, it is Congress' responsibility to tight up the deductions and tax breaks, but they and their rich buddies won't be doing that.

 

[Wild Bill Kelsoe]

Not a Biden fan, but there is nothing illegal, immoral, or untoward about S Corporations. An S Corp isn't a loophole or dodge.

You're right, but it reeks of hypocrisy.

 

[Wild Bill Kelsoe]

I have been saying this for a long time, the rich write tax laws that help the rich. Congress, Biden was a member of for decades helped write his tax breaks. I don't blame people for taking all the tax breaks that are available, it is Congress' responsibility to tight up the deductions and tax breaks, but they and their rich buddies won't be doing that.

That's why I laugh at the Leftist cultists who actually think the Democrats are going to "tax the rich".

 

[Claudette]

Ordinary Guy
Color me shocked.

 

[Uncensored2008]

it certainly is if only used to avoid taxes, at least by democrat definition

It doesn't avoid taxes.

{A traditional C Corporation is treated as a separate legal entity by the U.S. Internal Revenue Services (IRS). The business is charged corporate income tax for profits earned. The shareholders are liable to pay personal income tax on income earned from the company, i.e. profits earned in the form of dividends. This practice is often termed as “double taxation.” Certain fringe benefits provided for employee welfare such as healthcare and life insurance are deductible from corporate profits, which helps reduce the corporation’s tax burden.}

Note that when the Fascists howl about "corporations as people" that it was THEY who created this (in 1860) in order to apply INCOME TAX to them as if they were a persorn.

{Conversely, an S corporation does not get charged at the corporate level. All gains accrued by the business are attributed to the owners, who are then charged personal income tax. It resembles the model of a sole proprietorship or a partnership. An S corporation is not permitted to deduct the cost of fringe benefits offered, which means that they add to the taxable income of all shareholders holding more than 2% of stock.}

Hence, an S corp in no way avoids taxation, and in fact often pays more if there are employee benefits, depreciable fixed assets and other corporate deductions which are not available to individuals in pass-through taxation.

C Corp vs S Corp

Potential or existing business owners often face the choice of setting up either as a C Corp vs S Corp when starting a new business or changing their

corporatefinanceinstitute.com

 

[Uncensored2008]

She has to pay if she is a writer by trade. It is one of those areas where there is nuance. If you are a welder and decide to write a book about welding or the Civil War, you do not have to pay FICA on royalties. If you are a writer who decides to write a book about welding of the Civil War, you do have to pay FICA at the self-employment rates on the royalties.

There is no "nuance."

S corporations use "pass through taxation." Income is taxed as regular income. Doesn't matter the source, earn income, pay taxes.

 

[Uncensored2008]

at a very reduced rate according to an accountant this morning

Nope, the same graduated rate anyone else pays.. And the opportunity for creative deductions was severely reduced by Trump's tax overhaul.

 

[Oldestyle]

Not defending Joe, but I don't think you have to pay FICA on book royalties if being a writer is not your primary profession. No idea about the speaking side of it.

With all due respect, Dekster...if someone is making 13 million from doing ANYTHING...then that activity is their "primary profession"! Just saying...

 

[Ordinary Guy]

Nope, the same graduated rate anyone else pays.. And the opportunity for creative deductions was severely reduced by Trump's tax overhaul.

Not what I am hearing and reading when shareholders are involved