The New York Times recently released a report about Donald Trump’s tax evasion and Joe Biden’s campaign team used it to their advantage.
However, Joe and his wife have been allegedly part of a similar scandal, according to The Wall Street Journal. Through several S Corps established in Delaware, the couple routed their income and managed to avoid paying taxes, which they would have to if they hadn’t exploited the loophole.
The Bidens generated over $13 million and only claimed $750,000 as their income from books and speeches. The remaining money was written off as a direct distribution to the Bidens which allowed them to evade the 15.3% tax rate.
The IRS also has clear guidelines on what counts as income and what is considered a distribution to the employee shareholder according to the nature of the business. Payment to employee shareholders is subject to employment taxes.
The Bidens are accused of using the Delaware corporate law as a cover to prevent their income from being investigated. The compensation received from the S corps is subjected to employment taxes.
The Bidens attacked Trump for paying little to no taxes in recent years, using an ad on their Twitter campaign page. However, many people are of the view that the Bidens tax evasion maneuvers should also be brought to light as well as the accusations on his son, Hunter Biden.
Trump claimed in a tweet that The New York Times is spreading false information about him as the elections are nearing. He further explains that he is entitled to depreciation and tax credits.
Most of Trump’s businesses are a part of the real estate industry and according to tax laws, tax credits, deductions and depreciation are applicable.
Trump’s oldest son also came to his defense supporting his father’s statement that he has paid millions in taxes, but he was exempt in some cases because of depreciation, write-offs, and historical tax credits.
He also mentioned the government contract to rebuild the Old Post Office Building, explaining the historical tax credits are used to offset tax payments for the risk associated with the project.
He further argues that although Trump’s federal tax income due is low, he has still actively paid property and payroll taxes. He also adds that his father’s businesses have increased employment rates, providing jobs to thousands of people who pay taxes as well.