This one’s a doozy!
It was obvious Jen Psaki was not on the top of her game on Tuesday, especially when she was asked about Biden’s tax hypocrisy and the rich “paying their fair share.”
A reporter asked the White House Eva Braun about recent reports that Joe Biden and his wife Jill cheated on their taxes, hiding hundreds of thousands of dollars in income to avoid paying Uncle Sam.
Psaki attempted to dodge the question by claiming that such reports had been “debunked”; she provided no references.
— Jim Banks (@RepJimBanks) October 12, 2021
Back in 2019, the Wall Street Journal reported that Joe Biden and his wife “Dr.” Jill avoided more than $500,000 in taxes by reporting income as an S corporation rather than as individual taxpayers, thereby dodging Medicare and Obamacare taxes.
The hypocrisy here goes without saying, but Obamacare taxes were something Biden himself fought tooth and nail to pass during his time as Vice President.
The Bidens routed their book and speech income through S corporations, according to tax returns the couple released this week. They paid income taxes on those profits, but the strategy let the couple avoid the 3.8% self-employment tax they would have paid had they been compensated directly instead of through the S corporations.
The tax savings were as much as $500,000, compared to what the Bidens would have owed if paid directly or if the Obama proposal had become law.
Biden has since decried these loopholes, now saying all income of this nature should be taxed and used for various social services and welfare programs.
In other words, this story is far from being “debunked” despite Psaki’s claim of the opposite.
In 2021, the nonpartisan Congressional Research Service (CRS), which works for Congress, sent a memorandum to Indiana Republican Rep. Jim Banks, suggesting that taxpayers who used the Bidens’ method could owe back taxes to the Internal Revenue Service.
The CRS report did not mention Biden specifically, but the memorandum was never “debunked.”
Psaki noted that Biden had released several years of his tax returns; President Donald Trump declined to release his own, saying they were under audit.
Author: Sebastian Hayworth