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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Captain Jack who wrote (75305)	10/7/2004 12:33:34 PM
From: Ilaine	Read Replies (1) \| Respond to of 793897

>>I read somewhere his medicare tax avoidence was around $591K. Speaking from personal experience, there is something that feels profoundly unfair about paying FICA and FUTA after Social Security tops out around $70K. There's no cap on FICA and FUTA. Lots of small business owners do what Edwards did, set up an S corporation in order to pay themselves a reasonable salary, and then declare the rest as a dividend. There are other tax benefits to doing that, not just avoiding FICA and FUTA. In case you're wondering, I don't have a corporation, but maybe I should. Law income is "feast or famine," some years you make a little, some years you make a lot. This seems like a way of evening things out. Otherwise, one year you pay yourself a salary of, say, $40K and the next, $800K. I see inherent problems in that, too. Paying yourself a dividend seems more accurate to what actually happened.