A new report from the Congressional Research Service claims President Biden may owe upwards of $500,000 to the IRS.
The US President may have improperly avoided paying Medicare taxes before he took office and could owe the IRS up to $500,000, according to a Congressional Research Service report.
“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.
Biden is pushing for a $3.5trillion bill to fund childcare, education, and health care by targeting tax fraud and increasing taxes on higher incomes so the ‘rich pay their fair share.’
A House Ways and Means Committee draft of the bill would end the tax-avoidance trick used by Biden as well as boost the IRS’ auditing budget.
However, the report drafted by the Congressional Research Service and obtained by Dailymail.com, suggests Biden owes taxes under current rules, according to the congressman who requested the research institute to look into the claim.
Banks said the 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.
The White House pointed to a Biden campaign statement that defended Biden’s actions.
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“The salaries earned by the Bidens are reasonable and were determined in good faith, considering the nature of the entities and the services they performed,” the statement said, calling the use of the corporations a “common method for taxpayers who have outside sources of income to consolidate their earnings and expenses.”
“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.”