BIDEN AND TAX CODE LOOPHOLE
Biden and tax code loophole.When taxes and what politicians have paid get into the media, it can become a real mess, and even influence happenings on Capital Hill. The Panama Papers showed that when celebrities, sports figures, and politicians are caught not paying enough in taxes, politics and changes in law due to public pressure can result. In recent weeks, Rep. Jim Banks (R-Ind.) has brought to everyone’s attention the fact that “multimillionaire Joe Biden’s use of corporate loopholes to avoid paying taxes”. The White House has denied the charges. Biden and tax code loophole.
During the 2020 campaign, President Biden released his tax returns, marking a distinction from President Trump, who was the first President in decades to not routiney disclose his tax returns. Biden meanwhile released 23 worth of tax returns. But no good deed goes unpunished, as a sharp Wall Street Journal reporter noticed that Biden, in 2017 and 2018 tax returns, had taken advantage of a tax loophole that President Obama had sought unsuccessfully to close. The article suggested that Biden and his wife Jill, save as much as $500,000 in taxes as a result of the tax maneuver. One thing is ure, Biden won’t need Tax Resolution. The Biden’s also routed their taxes thru several corporations, thus avoiding the 3.8% in Medicare taxes normally due.
The Wall Street Journal, a Republican leaning publication, quoted Steven Rosenthal, a senior fellow at the Tax Policy Center, as saying that to the extent that the Biden’s income came directly from the couple’s consulting and public speaking, “to treatthose as other than compensation is pretty agressive”. Rosenthal told the Fact Checker tha he stood by that assesment, “I believe Biden routed his income through an S Corporation to avoid the 3.8% medicare tax/ net investment income tax”, he said. He noted that BIden’s 20019 income tax return allocated a much larger percentage of his S Corporation income to earnigs that would be subject to the tax. What seems to be agressive use of the tax code, seems quetionable given that BIden was saying the rich should pay more on the campaign trail,
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