This is one of the most poorly reasoned diatribes I have ever read. It is an outrage that this dirtbag traitor would resort to outright lies.
This is a classic Subchapter "S" corporation devised to shelter income, mainly for professionals such as lawyers (and also syndicated columnists, but not me). It is one of the last loopholes left in the Internal Revenue Code, and it is a big one.
The S corporation is in no way, shape or form a tax shelter. Every penny of profit gets taxed. It is intended to avoid the double taxation resulting from a C corporation, and is used by pretty much every mom-and-pop business in the nation.
The government's position is that dummy corporations such as John R. Edwards, P.A., must pay its sole employee a "reasonable" salary. Tax practitioners told me that paying a $1.1 million salary out of $11.1 million net income may not pass the "reasonable" test.
A P.A. is not a "dummy" corporation, you despicable scoundrel, it is a corporation like any other, except with less favorable asset protection features.
There have been thousands of cases determining what is "reasonable" compensation. Given that in the case of C corporations it is very much in the IRS's favor to argue the business owner paid himself too much the case law tends to support paying yourself a low salary and taking the rest as dividends.
There is no record that Edwards, during his six years in the Senate, ever even considered legislation to close the giant loophole of the personal corporation.
Because proposing such a thing would bring howls of protest from the small business community, and any politician who did so would be ridden out of town on a rail. |
