A stunning new congressional report exposed President Biden – who is publicly calling on the rich to ”pay their fair share” – may have cheated the system himself to avoid paying taxes and could owe the IRS up to $500,000.
“Joe Biden wants to raise taxes by $2.1 trillion while claiming the rich need to pay their ‘fair share.’ But in 2017, multi-millionaire Joe Biden skirted his payroll taxes — the very taxes that fund Medicare and Obamacare,” said Rep. Jim Banks, who chairs the conservative Republican Study Committee.
Banks said the non-partisan report indicated that Biden improperly used “S corporations” while he and first lady Jill Biden raked in over $13 million on speaking fees and book sales in 2017 and 2018, but counted less than $800,000 of it as a salary that could be taxed for Medicare.
Biden was elected on the platform of “taxing the rich” and is currently leading the charge to pass a $3.5 trillion bill that would help fund child care, education and health care by targeting tax avoidance and raising taxes on people in high-income brackets – which would include the president himself.
Banks continued, “According to the criteria CRS provided to my office, he owes the IRS and the American people hundreds of thousands of dollars in back taxes. Every American should know about Joe Biden’s tax hypocrisy.”
A draft of the bill includes a provision that would close loopholes similar to the one Biden used, though the report indicates that Biden would still owe taxes under the current rules, as well.
The report does not name the president explicitly, but it analyzes cases where the IRS won a judgment against taxpayers who improperly exploited the S corporations to avoid the Medicare tax.
But when the Bidens released their tax returns during his presidential campaign, they showed that the couple saved up to $500,000 by avoiding the 3.8% self-employment tax with the S corporations.
“As demonstrated by their effective federal tax rate in 2017 and 2018—which exceeded 33%—the Bidens are committed to ensuring that all Americans pay their fair share,” the Biden campaign said in a statement at the time.
Some experts believe that the IRS does not have the resources to investigate all the taxpayers who may abuse S corporations to avoid taxes.
“There are millions — literally millions — of S corporations. So there might be a half a million S corporations that are playing this game,” said John Bogdanski, who served as a member of the IRS Commissioner’s Advisory Group. “And the IRS doesn’t have anywhere near enough of a budget to bring a half a million cases every year.”
Biden, however, is trying to solve that issue by making the IRS even more powerful. The President is planning to beef up the IRS by a whopping $80 billion which according to one outlet, would result in a world where “every one of your noncash financial transactions—a restaurant meal, a Venmo transfer to a friend, maybe some bitcoin bought on the dips—was automatically reported to a beefed-up, audit-hungry IRS.”
“That dystopia will become a reality if President Joe Biden gets his way,” the outlet continued. “Biden, Treasury Secretary Janet Yellen, and key Capitol Hill allies such as Sen. Elizabeth Warren are pushing a vast, intrusive financial surveillance system in the name of closing the ‘tax gap.’”
Author: Kevin Murray