There is a possibility that President Joe Biden has improperly avoided paying for Medicare taxes prior to taking office. With this, he could owe up to $500,000 to the IRC, per a Congressional Research Service report.
According to Rep. Jim Banks, the chairperson of the Republican Study Committee, the president aims to increase taxes by $2.1 trillion while saying the rich have to pay their “fair share.” However, the representative pointed out that the president, who is a multi-millionaire, dodged paying his payroll taxes that fund Medicare and Obamacare.
Biden Used “S Corporation” Loophole to Avoid Taxes
Banks mentioned that the report shows Biden improperly using “S corporations” when he and first lady Jill Biden earned over $13 million from speeches and book sales back in 2017 and 2018. However, they counted below $800,000 as salary that they could be taxed for in terms of Medicare.
RUT ROH!@JoeBiden may owe up to $500K in back taxes
Biden may have improperly used 'S corporations' to avoid taxes on speaking fees and book saleshttps://t.co/KayrVuxgUk#JoeBiden pic.twitter.com/kqS7g7UWSm
— Larry Elder (@larryelder) September 24, 2021
The president leads the effort to pass a bill worth $3.5 trillion that aims to provide funding for health care, child care, and education. To pay for this legislation, Biden’s proposal calls to target tax avoidance all while increasing taxes on people who belong to high-income brackets.
A draft of the said proposal contains provisions that would block loopholes like the one Biden used, but the report says the president would still owe the IRS taxes based on the current rules.
The report doesn’t directly name the president. However, it analyzes cases in which the IRS won cases against taxpayers who exploited S corporations to skirt around Medicare taxes.
Although, when the Bidens published their tax returns during the president’s campaign, they should that the two of them saved nearly $500,000 by avoiding the self-employment tax worth 3.8% by using S corporations
A number of experts believe the IRS doesn’t have the necessary resources to look into every taxpayer who could abuse S corporations to avoid taxes.
According to John Bogdanski, who formerly served as a member of the IRS Commissioner’s Advisory Group, millions of S corporations exist, so it’s possible to have half a million of such corporations “playing this game.” With this, he said the IRS doesn’t have enough funding to look into half a million cases annually.