Article from Fox Business by Brittany De Lea.
Former Vice President Joe Biden, who is running for president in 2020Opens a New Window., used a taxOpens a New Window. strategy former President Barack Obama likely would not have approved of.
Biden released additional years’ worth of tax returns this week, revealing that he and his wife funneled profits from their books and speeches through S corporations, as first noted by The Wall Street Journal. The controversial tax savings strategy – which Obama had tried to close – saved the couple as much as $500,000.
The loophole is known as the Gingrich-Edwards loophole, and Obama had called for its end as part of one of his budgets. It essentially allows self-employed people to set up an S corporation in order to avoid payroll taxes – including Social Security and Medicare taxes.
It is legal, and allows people to treat income as company profits instead of a salary. According to research conducted in 2009, closing the loophole would raise $11.2 billion in revenue over the course of the decade.
Read the entire article at Fox Business.
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Washington politicians are thieves. They have their lobbyists and their tax lawyers and they rig the system for their, NOT our, benefit. We DO need term limits and a law where NO ONE who ever attended law school could EVER run for public office.
Anyone remember what William Shakespeare said about lawyers? He was right then, he’s STILL right.
Congress declared itself to be a small business in order to be exempt from Obamacare.
I don’t think that many employees would qualify as “Small Business” by anyones definition!
Wow! Legally using tax laws to keep more of your own money and Obama didn’t like that. I’m no fan of Joe Biden but what he did was legal. And I know others in my circle of friends who have been able to keep more of the money THEY EARNED using this law.
Yes the corruption Americans elect and reelect time and time again never do voters learn that to continue to elect the corrupt you get what you vote for and yet demand something be done about it.Wake up!
It is not a crime to set up your income in such a way as to minimize your tax liabilities – as per SCOTUS. As long as ‘sleepy” Joe did not do anything illegal there should be no issues.