As usual Novak has not properly researched his facts. Dividends are NOT deductible by corporations for Federal incomes tax purposes. Consequently Edwards would pay personal income taxes on the dividends at a higher rate than the Medicare tax that Novak is railing about, since Sub-Chapter S Corporations "pass through" income to stockholders. I don;t care for Edwards but he has done nothing wrong in this case.
To understand Novak’s point, look at your own pay stub. Deductions from your gross pay include federal & state taxes as well as Medicare tax on every dollar you earn. Forget about social security taxes because they stop after about $80,000.
So, if you collect $10,000,000 in ordinary income you pay federal, state AND Medicare taxes on the entire amount. However, if you pass the income through a Subchapter S corporation and pay yourself $100,000 in ordinary income and $9,900,000 in dividends you avoid paying Medicare taxes on the dividends because dividends are not subject to Medicare taxes.
The issue here is: is that legal? It sure isn’t ethical.