A $290,000 question for Edwards

[redqueen]

Novakula going after Edwards, it seems.

http://www.suntimes.com/output/novak/cst-edt-novak011.html

Sen. John Edwards got through last Thursday night's debate in Los Angeles, as he has his entire presidential campaign, without being asked an embarrassing question. How can he explain setting up a dummy corporation to avoid paying an estimated $290,000 in Medicare taxes in the two years before he ran for the Senate? It would be an embarrassing question for a self-described populist inveighing against privileges for the rich and powerful.

There were plenty of opportunities for Sen. John Kerry to bring this up during the debate's extended discussion of health care. Some of Kerry's key advisers worked on the 1998 North Carolina Senate campaign won by Edwards, when this issue was raised. But with Kerry on the brink of collecting a majority of delegates to guarantee the Democratic presidential nomination, he does not want to risk trouble with negative campaigning against his sole remaining serious opponent.

(snip)

At 9 a.m. on June 28, 1995, articles of incorporation were filed with the North Carolina secretary of state for John R. Edwards, P.A. (professional association), of Raleigh, N.C. The new corporation was authorized to issue 100,000 shares of common stock -- all owned by Edwards, who is its only employee. This is a classic Subchapter ''S'' corporation devised to shelter income, mainly for professionals such as lawyers. It is one of the last loopholes in the Internal Revenue Code, and it is a big one.

Edwards put his own little corporation to good use in his last two years as a personal accident lawyer before becoming a full-time politician. He paid himself salaries of $600,000 in 1996 and $540,000 in 1997, on which he paid Medicare taxes. As the sole stockholder, Edwards received dividends of $5 million for each of those years -- all of it free from Medicare taxes. That saved the future senator around $290,000.

[Cuban_Liberal]

1. *GASP!* JE set up a Subchapter S corporation????

Lord have mercy, what's next---- an IRA? An tax-exempt college-savings account for the kids?
:eyes:

[redqueen]

2. lol

Well, it is Novakula writing this, after all.

Just thought the Edwards camp might want a heads-up on what's headed his way today! (Saw this posted in editorials.)

[Cuban_Liberal]

3. Hehe!

I'd already seen it. Nofacts at his best! :P

[efront]

4. He didn't do anything illegal

He simply took advantage of a permissible concept to save he and his family nearly $300,000. Could anyone on this forum honestly say they wouldn't do the exact same thing? Further, Edwards fully admits that he is currently part of the "other America" that can afford the best accountants and attorneys to take advantage of all the tax breaks available. It's not unjust that Edwards himself has taken advantage of these in the past, but rather that all these loopholes exist at all. That is consistent with Edwards' message on the campaign trail.

[NNN0LHI]

5. Probably wouldn't have hurt to mention this was from Novak in the title

Nothing against you but this guys has got nothing to say I want to hear about. Not trying to attack the messenger here to avoid the message either but Novak really has been pretty pathetic lately. He should retire before he hits rock bottom.

Don

[rucky]

7. Novakula!

first word in the post.

I vant to suck yer blood!

[rucky]

6. Dontcha wish we knew how many Repugs have offshore accounts

they're so much better at hiding their money

[redqueen]

9. lol

He probably knows dozens just in his own little circle of friends!

But he's not paid to badmouth them!

[Kolesar]

8. Oopsie Dupsie

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