Edward A. Lyon FOR IMMEDIATE RELEASE: August 23, 2016
Chief Tax Strategist
TaxCoach Software, a Financial Gravity Company
Clinton Tax Returns Reveal Massive Overpayments
Former president and current candidate miss legal opportunities to pay less
Cincinnati, Ohio: On August 12, Presidential candidate Hillary Clinton released her 2015 tax returns to the public. Most pundits focused on the contrast between her willingness to release her previous 40 years of returns and rival candidate Donald Trump’s refusal to release even a single year of his. But careful observers who examine the substance of the Clintons’ actual filings have realized that the couple has failed to take advantage of perfectly legal planning strategies to save hundreds of thousands or even millions of dollars in tax.
The Clintons’ return reveals $10,168,272 in net income from six business activities, mainly writing and speaking. But all six of those activities are organized as sole proprietorships, which generally result in the highest income and self-employment taxes of all business entities. The Clintons also missed the opportunity to defer up to $59,000 each in 401(k) contributions, and possibly hundreds of thousands more in defined benefit plan contributions. Finally, they failed to utilize advanced planning strategies like captive insurance companies and charitable trusts. Proactive planning in any of those areas could have legitimately slashed the amount of tax they owed. As Supreme Court Justice William Rehnquist famously said, “There is nothing wrong with a strategy to avoid the payment of tax. The Internal Revenue Code doesn’t prevent that.”
Financial Gravity is a Dallas-based company that specializes in helping business owners pay less tax – legally, morally, and ethically. Business owners can visit www.FinancialGravity.com for more information.
Edward A. Lyon is the Chief Tax Strategist for Financial Gravity and a nationally-recognized author and speaker. He has appeared on over 500 radio and television broadcasts, including CNN, CNBC, Fox News, and MSNBC, and Roseanne Barr’s short-lived talk show, which dubbed him “the funniest tax guy in America.”
(This is a mock press release, but the observations are accurate!)