In 1995, When He Was Still A Practicing Personal Injury Lawyer, Edwards Avoided Paying $591,112 In Medicare Taxes By Setting Up A Tax Shelter.” The Tax Shelter Edwards Setup Kept Him From Paying Medicare Taxes On $5 Million In Corporate Dividends. Edwards, a trial lawyer, set up a professional corporation in 1995, in which he was the sole employee and shareholder. Edwards then paid himself a salary of $ 600,000 and $ 540,000 in 1996 and 1997, according to a personal disclosure statement he was required to file with the secretary of the Senate. At the same time he collected $ 5 million each year in dividends from his corporation. Edwards was required to pay Medicare taxes on his salary, but under this arrangement he was not required to pay Medicare taxes on his corporate dividends.