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Originally Posted by davew
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I can tell plenty by looking at that 1040.
1. If he really had $13 million of income in those two S-corps he paid a shit ton of expenses because the net on those companies is only 228,703.
2. The big issue in the original news story was the payroll taxes, but what most don't know is that there is a cap on payroll taxes, once you pay yourself a certain amount you don't have to pay them anymore. In 2020 this cap was $137,700. So once a person's wages go over that, payroll taxes are not collected. In this example you can see that because of his income through the corp and the University of Pennsylvania he actually over paid Social Security tax (you can see where he got the overage refunded on Schedule 3 line 11).
Overall it's a very clean looking tax return, there isn't much that would raise a red flag, this is the way most politicians do their taxes (Obama's were about as boring as it gets). They play it very conservatively so as to not have it come back to bite them. Biden is even making sure to cover the taxes on his housekeeper or gardener or some kind of household worker, which not everyone will do properly.
It also shows that his effective federal tax rate is 30.38%, so everyone that thinks there is all these loopholes to get people out of paying 30-40% to the federal government can **** right off. It's bullshit. When someone comes in my office, made a million dollars and asks what their tax rate, be I tell them 33%. They bitch, they moan, they tell me about some shit their neighbor told them or some horseshit they heard on the radio about tax loopholes. I laugh, it's fun times.
