A $290,000 Question for Edwards (the end of Edwards as VP?)

[Nancy Waterman]

I think the story in this Novak column spells the end of any chance of Edwards running for VP. It ran in the Wash Post today as well.

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.

<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.

[SaveElmer]

1. This is bogus

Everything Edwards did was legal, and well established procedure for the self-employed and small business...this is just an old hack political writer trying to stir up publicity for himself to draw attention away from his own ethical failings!!!

on edit: I had a stronger subject line, but didn't want to get deleted

[libview]

3. just because it's legal don't make it right.

I have a thing about trusting lawyers anyway, this doesn't help.

[cosmokramer]

2. He would never be VP anyway

He has no foreign policy experience, and little legislative experience.

The Kerry camp already said they would choose a southern democrat with STRONG foreign policy skills, and that it would not be a current legislator (Senator or Representative).

Edwards has no chance to be VP.

I hope he enjoys his ambulance chasing tax shelters for years to come.

[LandOLincoln]

6. Boy, that's a pretty strong hint, isn't it? Do you have a link? n/t

[katieforeman]

14. I hope that's not true becuase I'll have to move to

Canada. Kerry/Clark would have no chance in November.

[cosmokramer]

7. Was on CNN with Kerry spokesperson.

I heard the same thing from my State Kerry Chair.

[LandOLincoln]

8. So--who fits that description? or maybe I should ask,

who else fits that description?

Aside from the guy Kerry said would be "standing beside" him throughout his campaign, I mean. :bounce:

[cosmokramer]

9. Ummm...

Max Cleland. Though I don't think VP would be where he is most appreciated. He would be outstanding for Homeland Security, and it would absolutely STING the GOP that he gets that position...Cleland lost when the GOP attacked him on the homeland security issues, so it would be oh-so-sweet revenge.

There is definitely a 'Band of Brothers' thing going on in the Kerry camp. Very nice, and very good for the party. Glad our General Clark is part of it.

[LandOLincoln]

10. Or Cleland for SecDef, especially since he's eligible

and Clark isn't (hasn't been out of the Army long enough).

Way to stick it to those chickenhawk swine!

[cosmokramer]

12. Astonishing how many folks don't know that

...Clark cannot be Sec of Def. Astounding, really.

[Kolesar]

4. find me a mega-money professional who does not use such shelters

...and I will show you a fool. Have members of the Bush administration been reviewed for using such Chapter "S" corporations?

[papau]

5. No problem for Edwards - DU prior thread on this - link below

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=415249&mesg_id=415249

[katieforeman]

11. this just shows how desperate Republicans are to

make sure Kerry is the nominee!

[cosmokramer]

13. Fercrippessake...

...not everything is a GOP conspiracy theory!

The Media didn't kill Dean, and the GOP isn't praying for Kerry.

They are praying for Edwards--wipe the floor with no FP experience candidate.

[katieforeman]

15. How is this a conspiracy?

Robert Novak writes an influential column. He wants Bush to win in November. He obviously doesn't want Edwards to win on Tues. the timing is perfect to hurt Edwards-just in time to raise doubts in primary voters minds but not enough time for Edwards to defend it. This information has been out there since Edwards ran for the Senate. Why bring it up now?

Novak could have used his column to defend Bush or attack Kerry. However, he put a higher priority on attacking Edwards than Kerry. What does that tell you?