United States President Joe Biden and Vice President Kamala Harris released their tax returns for 2020 on May 17. They divulged the incomes for themselves and their spouses for 2020 before their inauguration. The disclosure was made on Tax Day, which is the individual tax filing deadline for most Americans.
The president and vice president resumed a decades-long tradition by those sitting in the offices. Biden's swift release of his tax returns is in stark contrast with former President Donald Trump, who did not release his.
Biden, Harris Tax Returns
What in other years would possibly not be huge news is making headlines this 2021. According to the White House, "Today, the President released his 2020 federal income tax return, continuing an almost uninterrupted tradition," reported NPR.
Biden and the and presidential first lady Jill Biden have earnings of just over $600,000. They have an effective federal income tax rate of 25.9%, and 5% were allocated to charitable donations.
The previous president fought prosecutors in the courts to attempt and stop them from acquiring his financial and tax records. However, the Supreme Court ruled in February that NYC prosecutors could implement a subpoena to obtain them, reported Axios.
Former Vice President Mike Pence also broke with precedent and did not divulge his returns at any time of his tenure. Biden and the first lady reported paying $157,414 in federal income taxes, having an effective tax rate of 25.9 percent, reported The Hill.
Bidens' Earnings Down
The president and his wife's earnings went down from $985,223 in 2019. This was when they essentially earned money from speeches, book sales, and positions at the Northern Virginia Community College and University of Pennsylvania. Such income opportunities decreased due to the campaign.
Part of Biden's diminishing income could be attributed to earning less money in pass-through businesses. Following his stint as vice president during former President Barack Obama's tenure, it was where he routed book income. This enabled him to save major sums on self-employment taxes, a method touted as the Gingrich-Edwards loophole for former House Speaker Newt Gingrich and former presidential candidate John Edwards. They used similar non-corporate businesses to keep down their self-employment tax payments.
According to White House press secretary Jen Psaki at Monday's press briefing, she would expect they will continue to release Biden's tax returns as should be expected by all presidents of the US. The average income tax rate for all US citizens is 14.6%.
The Bidens reportedly donated $30,704 or around 5.1 percent of their total income to 10 charity organizations. The most massive reported gift to charity was $10,000 to the Beau Biden Foundation. This is a public charity committed to ensuring that all children are free from physical harm.
The deadline to file federal taxes was extended due to the COVID-19 pandemic. But under the 2017 tax law, they were merely allowed to knock the maximum $10,000 from their federal gross income.
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