As one might expect, news of the incoming Treasury secretary making millions from Wall Street institutions, many of which she would regulate, caused concern among the progressive left. But given the way she paid taxes on those speaking fees, Yellen’s actions raise as many concerns about the actions of the man who appointed her: Joe Biden.
But Yellen’s financial disclosure also contains a noteworthy omission, revealing that she did not funnel those speaking fees through an S-corporation to avoid paying payroll taxes on her earnings. By contrast, Biden’s financial disclosure forms list him as the president of the CelticCapri Corporation, and Jill Biden’s involvement with the Giacoppa Corporation.
The fact that Yellen will have jurisdiction over tax policy—and the Internal Revenue Service—adds to the drama. If Yellen felt uncomfortable using an S-corporation to avoid payroll taxes on her speaking fees from Wall Street, does that mean she believes Biden violated tax laws by doing so himself? If so, will she ask the IRS’s career civil servants to consider an audit of Biden’s returns?
Count Yellen’s speeches, and the potential conflicts they pose, as fair game in her confirmation hearings. But so too should senators ask Yellen why she didn’t use an S-corporation to avoid payroll taxes on her speech income, and what she thinks of Biden’s use of this loophole. If Yellen has the ethical standards the Biden transition team says she does, perhaps Hunter won’t be the only Biden facing an investigation about his taxes.
