According to this story on MarketWatch …
Mr. Biden and his wife, Dr. Jill Biden, routed their book and speech income through S corporations, according to tax returns the couple released this week. They paid income taxes on those profits, but the strategy let the couple avoid the 3.8% self-employment tax they would have paid had they been compensated directly instead of through the S corporations.
The tax savings were as much as $500,000, compared to what the Bidens would have owed if paid directly or if the Obama proposal had become law.
“There’s no reason for these to be in an S corp — none, other than to save on self-employment tax,” said Tony Nitti, an accountant at RubinBrown LLP who reviewed the returns.
So if they saved $500k by not paying a 3,8% tax, I figure their taxable income from book and speech income was about $13 million (i.e., 500,000/0.038). Yes? No?
But no worries …
“As demonstrated by their effective federal tax rate in 2017 and 2018 — which exceeded 33% —the Bidens are committed to ensuring that all Americans pay their fair share,” the Biden campaign said in a statement Wednesday.
Yeah, they paid plenty. Just not that measly $500k. That Obama would have wanted him to pay.