Remember when the political left trounced former President Donald Trump for not releasing his tax records? Naturally, they claimed he and his family business must be hiding something, perhaps that he didn’t pay taxes or didn’t claim the income he actually earned. Even still, there are those going after the Trump family on such ideas.
He is, after all, part of the “super-wealthy” that those like now-President Joe Biden have said time and time again never end up paying their “fair share.”
But as it turns out, Biden himself isn’t much better.
In fact, according to the first family’s 2021 tax returns, which of course he had to release after all the blabbering about Trump not doing so, both Joe and Jill earned significantly more than their “income” says and yet, didn’t pay the appropriate taxes on any of it.
And this is not the first year they’ve done so.
As their tax returns explain, both of the Bidens use an S corporation to run their earnings through. Basically, this means that rather than claiming the income earned from things like book deals and speaking engagements, it is classified as distributions of profits, which are not subject to tax fees such as the 2.9 percent Medicare payroll tax or the 0.9 percent Obamacare surcharge.
This means that combined, the Bidens got out of paying some 3.8 percent of their combined incomes for the year, according to page 13 of their jointly filed tax return.
For Jill, $32,761 was run through Giacoppa Corporation as “distribution.” Joe claimed another $29,234 under his CelticCapri Corporation. Together, the $61,995 was written off as corporate profits.
According to IRS guidance, S corporations are required to pay “reasonable compensation” to their employee shareholders, such as the Bidens, before making “distributions” to them. This means that the earnings of both Joe and Jill should have first been categorized as income and then taxed (both by Social Security and Medicare) before any further “profits” could be distributed.
Clearly, that’s not what happened.
In fact, it seems the couple also skimped out on paying their allotted Social Security taxes.
Now, for Joe Biden, this can be explained by his extremely high salary. If you didn’t know, there is a wage cap for Social Security taxes that currently sits at $142,800 a year. As president, Biden earns a whopping $400,000 a year. And yes, unlike Trump, Biden is taking his presidential salary.
So basically, he doesn’t have to pay Social Security taxes.
I know it is not fair…
On the other hand, Jill doesn’t make nearly so much money a year.
As a teacher at Northern Virginia Community College in 2021, she earned about $67,000, according to their return. This means that Social Security taxes should have been taken from her income. And they were, at least for the salary she claimed.
As for the almost $33,000 she classified as “corporate profits,” the same cannot be said.
According to Christopher Jacobs from The Federalist, this means that together the Bidens should owe another $6,100 or so more to the IRS. And that’s for this year alone.
Looking back, it is noted that the Bidens used the same tactics to evade paying their “fair share” for the years 2017 to 2020 as well.
As The Wall Street Journal calculated, over $13 million was routed through the Bidens’ S corporations for those years. And yet, only a measly $800,000 was recorded as taxable salary income. This means that between Medicare and Obamacare taxes alone, the couple has avoided paying some $517,000 over the last few years.
And yet, our current president has the audacity to tweet out comments of being “sick and tired of the super-wealthy and giant corporations not paying their fair share in taxes. It’s time for it to change.”
He also recently said he’s “fighting to build an economy that rewards work – not wealth.”
But when we look at his own taxes, we see his words don’t line up with his actions. No wonder we can’t trust the man.