President Biden could owe the Internal Revenue Services up to $500,000 for improperly avoiding paying Medicare taxes prior to taking office; this comes according to a report by a Congressional Research Service.
Representative Jim Banks, chairman of the conservative Republican Study Committee, was quick to criticize the president. Banks stated that Biden intends to raise taxes up to $2.1 trillion, while at the same time claiming that the rich has to pay a “fair share.”
However, back in 2017, Biden, whom Banks called a “multi-millionaire,” avoided paying his payroll taxes, the taxes that fund Obamacare and Medicare.
— The Daily Wire (@realDailyWire) September 23, 2021
Banks: Joe and Jill Biden improperly used “S Corporations” while they raked in $13 million
Banks added that according to the report by the Congressional Research Service, the president improperly utilized “S Corporations.” This happened while Biden and the first lady took home more than $13 million.
The money came from book sales and speaking fees during the years 2017 and 2018. Yet, they merely accounted less than $800,000 as salary, the same taxes that funds for Obamacare and Medicare.
Biden leads the movement to pass the $3.5 trillion bill which would aid in funding healthcare, education, and childcare. However, in order to fund the massive legislation, Biden calls to target tax avoidance.
At the same time, the president is pushing to increase taxes of people in the higher income bracket, while Biden claims they are not paying for their “fair share.”
Biden May Owe $500,000 in Taxes?#Biden routed $13M in speaking fees and book sales thru S corporations – counting less than $800,000 as salary eligible for the Medicare tax —
Thereby exempting the rest from what would have been a 3.8% rate.https://t.co/hwvhjY3iAf
— Tom T. ن® (@VRWCTexan) September 24, 2021
The draft of the bill has a provision that intends to close the loopholes, the same as the ones used by Biden to avoid paying taxes. However, despite said provision, Biden still owes the IRS taxes under the present rule.
Although the report did not specifically name Biden, it looked at instances where the IRS won cases against taxpayers who exploited and improperly used “S Corporations” in order to avoid paying Medicare taxes.
The Bidens saved up to $500,000 in 2017-2018 for avoiding to pay self employment tax
It can be noted that during the presidential campaign period when Joe and Jill Biden released their tax returns, it showed they saved up to $500,000 in taxes. This occurred through avoidance of paying 3.8% self-employment tax through S corporations.
At that time, the Biden campaign said in a statement that their tax rate in the years 2017-2018, which allegedly exceeded 33%, is “effective.” According to the Biden campaign, this reflects how the couple is committed in assuring that the public pay their “fair share.”
However, some experts believe the IRS does not have enough resources to conduct an investigation into all American taxpayers who might be abusing S Corporations in order to avoid paying for taxes.
A member of the Advisory Group of IRS Commissioner, John Bogdanski, claimed there are millions of S Corporations. He added there are probably around a half million being used for this kind of scheme.