Biden’s back tax arrears may hit $500k, according to a new report. President Biden may have leveraged ‘S corporations‘ improperly to avoid paying taxes on speaking fees and book sales.
• According to a Congressional Research Service report, President Biden may have wrongfully avoided Medicare taxes before assuming office and may owe the IRS up to $500,000.
• In 2017 and 2018, Biden and First Lady Jill Biden netted more than $13 million in speaking fees and book sales but reported less than $800,000 of it as taxable income that could be taxed for Medicare.
• The couple saved up to $500,000 through S corporations and avoided the 3.8 percent self-employment tax.
• Some experts feel that the IRS lacks the resources necessary to investigate all taxpayers who may be abusing S corporations to avoid taxes.
According to a Congressional Research Service report, President Biden may have wrongfully avoided paying Medicare taxes before taking office and may owe the IRS up to $500,000.
“Joe Biden seeks to raise taxes by $2.1 trillion, arguing that the rich should pay their ‘fair share.’ However, Joe Biden, a multimillionaire, avoided payroll taxes in 2017 — the very taxes that fund Medicare and Obamacare, “Rep. Jim Banks, the conservative Republican Study Committee’s chair, stated.
Banks stated that the report indicated that Biden inappropriately exploited “S corporations” while making over $13 million in speaking fees and book sales in 2017 and 2018, but declaring less than $800,000 of it as taxable income that could be taxed for Medicare.
Biden’s Wealth Tax Proposal
President Biden urged Congress to hike taxes on the wealthiest Americans and corporations. According to him, the world’s richest people’s combined net worth ramped up by an astounding $1.8 trillion last year.
The House Ways & Means Committee voted to move the social safety net bill’s tax section. If implemented in its entirety, the new federal corporate income tax rate will be 26.5 percent, while the top individual income tax band will be 39.6 %.
The House Ways and Means Committee advanced the bill’s tax provisions, which the House Budget Committee will now consider. This is the first step in a race to a Sept. 27 deadline set by House Democrats for votes on the $1 trillion infrastructure bill approved by the Senate and the $3.5 trillion safety net bill.
Biden will require the support of every Democrat in the Senate, which is tied 50-50 between Democrats and Republicans. Thus far, public opinion seems to favor hiking taxes on the rich and corporations to widen benefits.
While Biden’s back tax arrears could hit $500K, the report makes no express mention of the president.
Biden is spearheading the push to enact a $3.5 trillion measure that would subsidize childcare, education, and health care. To help pay for the hefty legislation’s costs, Biden’s plan calls for pursuing tax avoidance while increasing taxes on those in the highest income brackets who, according to Biden, do not “pay their fair share.”
A draft of the proposal features a provision that would eliminate similar loopholes to those exploited by Biden. At the same time, the report implies that Biden would still owe taxes under current law.
The report does not mention the president, but it analyzes situations where the IRS won a judgment against taxpayers who misused S corporations to avoid paying Medicare taxes.
However, when the Bidens published their tax records during his presidential campaign, they revealed that they saved up to $500,000 by avoiding the 3.8 percent self-employment tax through the use of S corporations.
Biden’s back tax arrears could hit $500K even as IRS cannot investigate all tax avoidances.
“As shown by their effective federal tax rate exceeding 33% in 2017 and 2018, the Bidens are determined to seeing that all Americans pay their fair share,” the Biden campaign said at the time.
According to some experts, the IRS lacks the resources necessary to investigate all taxpayers who may misuse S corporations to avoid taxes.
“S corporations number in the millions – literally millions. Thus, there may be half a million S corporations involved in this game, “John Bogdanski, a former IRS Commissioner’s Advisory Group member, stated. “And the IRS lacks the resources necessary to bring a half-million cases each year.”