The following article contains editorial content written by a retired Chief of Police and current staff writer for Law Enforcement Today
WILMINGTON, DE- We have heard ad-nauseum Democrats claiming that President Trump has “avoided” paying income taxes and had only paid $750 in taxes, while ignoring the fact that the president had in fact paid millions of taxes in the form of the AMT or Alternative Minimum Tax.
That point was ignored by Fox News’ Chris Wallace in the first presidential debate in September. What Wallace should have been doing is investigating Joe Biden’s own skirting of paying taxes. We’ll explain.
Prior to the debate, Biden conveniently released his 2019 tax returns. This was of course a publicity stunt, so Biden could say that he made his tax returns public. However, as always, the devil is in the details.
Christopher Jacobs in The Federalist, however found those details. If you’ve been following Biden’s “campaign,” one common theme that he’s been complaining about is a claim that President Trump is going to gut Obamacare. Biden has continuously claimed to be a strong supporter of the so-called Affordable Care Act. However, Jacobs found out that Biden does not put his money where his mouth is.
Jacobs had noted in 2019 that based on Biden’s 2017 and 2018 tax returns, the Biden’s implemented a tax avoidance strategy which enabled them to avoid over half a million dollars in Medicare and Obamacare taxes. After digging in to the Biden’s 2019 tax returns, they did the same thing last year.
For all of Biden’s wailing about President Trump not paying taxes, he has his own tax avoidance strategies to answer for. So, how did this work?
According to Jacobs, Joe and Jill Biden took income from book royalties and speaking fees and channeled it through two S-corps—CelticCapri Corporation and Giacoppa Corporation. The Biden’s made sure to pay themselves small, modest salaries through the corporations and paid Social Security and Medicare taxes on that modest income.
The book and speech income—which amounted to over $13.5 million—was taken not as wages, but as profits from the two corporations. What did that accomplish? It allowed the Biden’s to avoid paying payroll taxes on that $13.5 million. Pretty nice little windfall. It works as follows.
Social Security taxes, Jacobs says, is only applied to the first $132,900 of income in the year 2019, they didn’t avoid paying taxes that fund SS.
However, Medicare taxes apply to ALL income, as well as the 0.9% “high-income” tax which was created in Section 9015 of Obamacare, which is levied on all wage income over $200,000 for an individual, $250,000 for a family.
By taking their income as corporate profits, Jacobs said, Joe and Jill Biden avoided paying the combined payroll tax of 3.8% on the $13.5 million in income received between 2017 through 2019.
The reason for the apparent significant drop last year is likely attributed, Jacobs says, to reduced speaking fees after Biden began his presidential campaign.
So, for all Biden’s whining and moaning about President Trump not paying “income tax,” and trying to gut Obamacare, Joe and Jill Biden have been avoiding paying into Obamacare like the rest of Americans are stuck with.
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As Jacobs notes, over three years the Biden’s avoided paying over half-a-million dollars in taxes, a significant amount.
In laymen’s terms, the Biden’s avoided $391,912 in Medicare taxes between 2017-2018, while the Urban Institute found a couple with average earnings, retiring this year would pay a combined $161,000 in Medicare taxes during their working career.
The above graph should be run by the Trump campaign twice an hour, every hour on every major network in the country. Americans are getting played by the Democrats and the Biden campaign about the tax issue when Biden himself has been gaming the system.
Still, the Biden campaign, Jacobs said, continues to run ads in which Biden claims that Obamacare “is personal to me.”
Democrats are hoping to create fear in people by claiming the Supreme Court will overturn the ACA and Biden has given the illusion that the act is “personal” to him. If that is truly the case, Jacobs posits, why did the Biden’s go out of their way to avoid paying Obamacare taxes?
Democrats have been demanding the release of Trump’s tax returns and the attorney general in New York filed suit in order to gain access. They claim it is for what they call “nonpartisan oversight purposes,” however where is the call for an IRS audit of Biden’s taxes?
In 2017, Biden earned $10 million in corporate profits, yet paid himself a measly salary, which Jacobs notes might actually be a violation of IRS compensation guidelines.
Biden has also been making the claim that President Trump is attempting to “gut” Social Security. When the president implemented a partial suspension of the payroll tax earlier this year, Biden called it:
“…the first shot in a new, reckless war on Social Security. Our seniors and millions of Americans with disabilities are under enough stress without Trump putting their hard-earned Social Security benefits in doubt.”
As Jacobs noted in a Wall Street Journal op-ed in August, the maximum payroll tax that would have been $1984—which was less than 1/250th the amount Biden circumvented in 2017-2018.
Jacobs said that in 2017 and 2018, Social Security tax only applied to the first $127,200 of income in 2017 and $128,400 in 2018. Under Biden’s tax plan the 12.4% Social Security tax would apply on income over $400,000, which means the same loophole he used in 2017-2018 would protect him from his own tax. How convenient.
Biden is a hypocrite, plain and simple. He takes the typical “good for thee, but not for me” mantra and applies it to his taxes. He wants everyone else to pay for Social Security, Medicare, and Obamacare but not he and his wife.
Unfortunately, we do not have a media who is interested in facts and truth. They are only interested in propping up Biden, a clearly cognitively declining man who should be sailing into the sunset of his years instead of running for the most important position in the world. They focus on the president’s tax returns and ignore Biden’s. And that is a crime.
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