According to a recently released Congressional Research Service Report, President Joe Biden may have avoided paying Medicare taxes prior to taking office. As a result, Biden could owe the IRS upwards of $500,000.
Rep. Jim Banks, who serves as the Republican Study Committee Chair, commented upon the irony of such a release, noting that the Biden administration is interesting in increasing taxes by $2.1T, all while claiming that the rich are must pay up their “fair share.”
“But in 2017, multi-millionaire [Biden] skirted his payroll taxes,” Banks continued, adding that those payroll taxes are “the very taxes that fund Medicare and Obamacare.”
Banks also observed other interesting revelations from the report, including the fact that Biden harnessed “S corporations” inappropriately as he and his wife, the first lady Jill Biden, earned over $13M in book sales in speaking fees in 2017 and 2018. However, the Biden family counted under $800,000 as a salary, which can be taxed for Medicare purposes.
Currently, Biden is heavily promoting the passage of a $3.5T spending bill designed for funding health care, child care, and education. Given the enormous tax revenues needed to sustain trillions in spending, the Biden admin is calling for fiercely targeting tax avoidance while also increasing taxes on individuals in higher-income tax brackets, all of whom Biden accuses of not paying their “fair share.”
A current draft of the multi-trillion dollar spending bill also includes provisions that would remove loopholes similar to the ones Biden himself recently used. Moreover, the same report also reveals that Biden would continue owing taxes even under the current rules.
To further support its assertions, the report provides instances of cases where the IRS won judgments against taxpayers who exploited S corporation loopholes to avoid paying Medicare tax.
When the Biden family released their tax returns over the course of the presidential campaign, it was revealed that they saved upwards of $500,000 by not paying the 3.8 percent self-employment tax associated with S-corporations.
At the time, the Biden campaign claimed that the Biden family’s “effective tax rate … exceeded 33 percent” in 2017 and 2018, which presumably proved that Biden is “committed to ensuring that all Americans pay their fair share.”
However, many experts believe that the IRS does not have sufficient resources for investigating all the taxpayers who may create S corporations and subsequently abuse loopholes in order to avoid paying taxes.
According to John Bogdanski, who has previously served as a member of the IRS Commissioner’s Advisory Group, multiple millions upon millions of S corporations exist, and upwards of 500,000 of the S corporations may be “playing this game.”
“The IRS doesn’t have anywhere near enough of a budget to bring half a million cases every year,” Bogdanski remarked.