The income from a company is derived from both services and from the investment of capital that its owners make. Capital can be money and/or goodwill.
The medicare tax is only on salary. If Newt was paid a fair salary for his services, there is no underpayment of tax.
Exactly. $444K is way, way more than a fair salary base for self-employment taxes. Non-story. Stupid author.
The medicare tax is only on salary. If Newt was paid a fair salary for his services, there is no underpayment of tax.
Exactly. If I invest my own capital in a business and take dividends from the profit, that is not salary.
BTW - tax evasion is illegal, tax avoidance is not (at least that’s the way it used to be).