Jon Edwards' Tax Dodge

While the Liberal Dynamic Duo rails against Benedict Arnold CEOs and other "rich" who don't pay their fair share, it appears that Edwards has been very successful in dogding paying his fair share. Don't hold your breath for the media to report this one. We alos don't know about the Kerry/Heinz taxes since she won't release her tax returns. Imagine the uproar if the media discovered Bush pulled this dodge? Kevin

Senator Edwards talks about the need to provide health care for all, but that didn't stop him from using a clever tax dodge to avoid paying $591,000 into the Medicare system. While making his fortune as a trial lawyer in 1995, he formed what is known as a "subchapter S" corporation, with himself as the sole shareholder.

Instead of taking his $26.9 million in earnings directly in the following four years, he paid himself a salary of $360,000 a year and took the rest as corporate dividends. Since salary is subject to 2.9% Medicare tax but dividends aren't, that meant he shielded more than 90% of his income. That's not necessarily illegal, but dodging such a large chunk of employment tax skates perilously close to the line.