In their latest tax disclosures, President Joe Biden and his wife, Jill Biden, have ignited discussions around their tax strategies and benefit claims.
Recent tax returns reveal President Biden and First Lady Jill Biden minimized payroll taxes and claimed significant Social Security benefits. The Federalist noted that the Biden's took full advantage of loopholes to dodge as much tax liability as possible.
As part of an annual tradition, President Biden and First Lady Jill Biden released their income tax returns on Tax Day.This act of transparency, done by presidents and vice presidents since the Nixon administration, aims to offer a window into their financial practices and integrity.
S-Corporations have been the method through which the Bidens have funneled their earnings since 2017. This strategic choice primarily concerns their revenues from book sales and speaking engagements. By using these entities, the Bidens have successfully reduced their payroll tax liabilities, which are crucial for funding essential federal programs.
The use of S-corporations has notably saved the Bidens upwards of $523,000 in payroll taxes. These taxes directly support Medicare, Obamacare, and Social Security — programs that the president has vocally advocated strengthening in his public addresses.
In the most recent tax year, Jill Biden’s S-corporation, Giacoppa Corporation, reported earning $4,115. Jill's primary income, however, comes from her teaching position, which in 2023, amounted to $85,985. This salary figure stood well below the Social Security wage cap of $160,200.
Had the $4,115 been declared as personal income instead of corporate profits, an additional $666.63 in taxes would be due from the First Lady. This situation highlights a notable instance of how earnings channeled through S-corps can influence personal tax responsibility.
Though Joe Biden has generated millions since his tenure as Vice President, the couple claimed $64,254 in Social Security benefits in 2023 alone. Of this, $42,842 was allocated to Joe Biden with the remaining $21,412 going to Jill. Joe Biden began receiving these benefits in 2008, immediately after turning 66.
This claim has raised eyebrows, considering the Biden's substantial income from other sources, bringing into question the necessity of these benefits for their personal finances.
Amidst this financial backdrop, accusations of hypocrisy have emerged. Critics argue that the president's public stance on protecting and funding federal welfare programs does not align with his personal tax practices. This discrepancy was voiced in a comment noting, "For someone who spends much of his time purporting to defend Medicare and Social Security, Joe Biden hasn’t made any steps to put his own money where his mouth is."
Further complicating their fiscal image in 2023, the Bidens encountered penalties due to underestimating tax payments. The IRS imposed a $285 penalty on the couple for not making timely estimated tax installments. This oversight adds another layer to the ongoing discussion about their financial acumen and commitment to tax compliance.
The narrative around the Bidens' financial decisions is complex. It underscores the intricate mechanisms of the U.S. tax system, where legal routes can be used to minimize obligations while legally maximizing benefits — a tactic not unique to the Bidens but rather a common practice among high earners and politicians.
Comments from the public and experts have highlighted a broader discourse on the ethics of tax avoidance versus evasion. The situation raises questions about the balance between legal tax strategies and moral responsibility, especially for public figures.
The story of the Bidens' financial maneuvers reflects broader systemic issues and opens
the floor for an intense debate on reforming tax regulations to align more closely with the principles of fairness and equality advocated publically. This highlights the often complex relationship between one’s public advocacy and private financial practices.
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