President Joe Biden wanted to be above board as well as prove to be a contrast to former President Trump by releasing his tax information. But, what the tax returns do show is that the Bidens have “aggressively” “exploited” a loophole for years. “A loophole that the Biden administration now claims it wants to close” reports The Federalist.
The Federalist writes the Bidens’ tax returns “highlight a pattern of hypocritical behavior by the current president and his family. To wit: For the fourth year running, the First Family used a questionable tax loophole to avoid paying more than $500,000 in Medicare and Obamacare taxes – a loophole that the Biden administration now claims it wants to close.”
The loophole “comes because Joe Biden and his wife Jill categorized much of their book and speech revenue as profits from two corporations they created, rather than as taxable wages” according to The Federalist. “Under current law, corporate profits are not subject to payroll taxes, meaning the Bidens avoided paying 3.8 percent in taxes – a 2.9 percent levy that funds Medicare, and a 0.9 percent tax created by Section 9015 of Obamacare that funds that law – on every dollar they categorized as corporate profits rather than wages.”
The loophole was used “most aggressively in 2017 and 2018 when Joe Biden earned millions through a reported $8 million book advance and various speaking engagements.” However, in the years without a book deal and because Biden spent 2019 and 2020 running for president, “the couple’s income – and therefore their ability to use this loophole – dropped.”
In 2020, Biden reported zero income from his corporation, therefore he was unable to use the loophole to reduce his taxes. Too bad, as the man who loves raising taxes also loves to avoid paying them. While avoiding $122,446 in Obamacare taxes, Biden spent his time on the campaign trail “highlighting his supposedly personal connections to, and passion for, that law” reports The Federalist.
Here’s the kicker, and as The Federalist puts it, hypocrisy personified: “Having dodged more than half a million dollars in taxes over the past four years by characterizing most of his family’s earnings as corporate profits rather than wages, what does Joe Biden now want to do? He wants to eliminate the loophole he so shamelessly – and recently – exploited.”