Following Biden’s $3.5 trillion spending bill, the Democrats claimed before releasing the framework would include legislation that will prevent increased taxation on small businesses. Still, the actual budget passed does not include any such language.
Biden has advocated imposing taxes on millions of firms, the majority of which are small businesses. However, this is the same individual who has cut his family’s tax obligations by approximately $517,000 in the last four years. After assuming the presidency, a hypocritical individual is now attempting to tax the businesses that support most of the country’s economy. Even Senate Finance Committee Chairman Ron Wyden, D-Oregon, proposed to increase tax revenues identical to that of the Democrats. It is a classic illustration of how the government backs Democrats’ lavish spending bills, and the consequent tax hikes destroy the economy and the private sector.
For small businesses, the owner’s income gets passed through the owner’s tax returns. The salaries paid by the owner are subject to income and payroll taxes, while the profit distributions are exempt from taxes. Biden and his wife devised a clever strategy to avoid having to pay millions in payroll taxes. They formed two small corporations to characterize up to 13 million in profits and avoid wage taxes. This strategy helped Jill Biden avoid giving up $394,000 in Medicare payroll taxes and an additional $122,000 in payroll taxes imposed by Obamacare. Though this tactic may not be fraudulent, it is called the Gingrich Edwards loophole used by many corporations to avoid payroll taxes. It had helped Biden secure millions of dollars when his income was only in thousands.
An IRS audit may be alerted to look into Biden’s pre-presidency returns, but so far, the spending bill at hand being pushed by the Democrats has a problematic taxation framework and can crumble the already Covid stricken economy.