In 2017 and 2018, the Bidens' S corporations reported more than $13 million in profits and paid the couple less than $800,000 in salary. In 2019, they generated about $229,000 in profits and paid the couple about $309,000. In 2020 they reported less than $100,000 in profits while paying Dr. Biden $200,000 in wages.
The Bidens’ 2020 income came primarily from pensions, Social Security benefits and Dr. Biden’s speaking and writing engagements. The couple donated $30,704 to charity and paid $157,414 in federal income and self-employment taxes, or 25.9% of their adjusted gross income. They would pay more under Mr. Biden’s tax proposals, which would raise the top individual tax rate to 39.6% from 37%.
After Mr. Biden left the vice presidency in 2017, the couple routed their speech and writing income
through S corporations.
That move meant that the couple avoided Medicare taxes totaling 3.8% on much of their income,
saving them as much as $500,000 in 2017 and 2018.
Legally, S corporations are supposed to pay only reasonable compensation to their owners equivalent to the market rate for such services. That compensation would face payroll taxes, and any remaining profits would be considered active business income outside the payroll tax or an equivalent 3.8% tax on investment income.
at least you guys have us Claypool, Stan Rogers, and Gordon Lightfoot.
