According to a Congressional Research Service report, President Joe Biden has used a tax avoidance trick in order not to pay Medicare tax before he was inaugurated and could owe the IRS up to $500,000. Biden also skirted his payroll taxes- the very taxes that fund Medicare and ObamaCare. Let’s dig into some key facts to know whether Biden owes taxes or not.
His economic agenda on the line, Biden prepares to fight to raise taxes on the wealthy
After a hard summer, President Joe Biden is ready to spend the fall fighting for higher taxes on the rich and corporations.
Now, Biden is turning his attention back to passing a once-in-a-generation expansion of the social safety net and infrastructure package.
Biden made a statement Thursday at the White House about why Congress needs to increase tax rates on the richest citizens and corporations to fund his “Build Back Better” agenda.
His statement came a week after Senate Ways and Means Committee chairman Mike Pederson published plans to introduce tax measures to help taxpayers.
The plan boosts the top corporate tax rate to 5.5 percentage points and the top personal tax rate to 2.6 percentage points, respectively. If it is passed as written, the new federal corporate income tax rate will be 26.5% and the new top personal income tax section will be 39.6%.
The plan also includes a 3% surtax on individual income over $5 million and a capital gains tax of 25%.
Biden and Harris release federal tax returns
Multi millionaire Joe Biden and Vice President Kamala Harris published their 2020 tax returns, reflecting their income from last year before they took office.
President and first lady Jill Biden reported an adjusted gross income of $607,336. They reported paying $157,414 in federal income taxes, a rate of 25.9%.
Harris and her husband, attorney Doug Emhoff reported an adjusted gross income of $1,695,225. They paid $621,893 in federal taxes. With higher income, the effective tax rate is higher: the second couple’s effective federal tax rate was 36.7%.
Biden used a tax code loophole to targeting tax avoidance
Democratic presidential candidate Joe Biden used tax loopholes that the Obama administration tried and failed to close, to reduce his tax bill dramatically. Biden and his wife, Dr. Jill Biden, directed their book and speech income through S corporations, according to tax returns the pair published. They paid income tax on those gains, but the strategy had the couple avoid the 3.8% self employment tax they would have paid if they were compensated directly rather than through S corporations.
They paid income taxes on those profits, but the strategy let the couple avoid the 3.8% self employment tax they would have paid if they received more than their share directly instead of through the S corporations.
The biggest tax savings for Obama are estimated at around $54 million, compared to what Biden and first lady Jill Biden owed directly or if Obama’s proposal had become law.
Does Joe Biden owe back taxes?
According to a nonpartisan government report, that Biden could owe the IRS up to $500,000 in back taxes after it was reported that he avoided paying Medicare tax through a tax loophole for years.
Multi millionaire Joe Biden is pushing for a $3.5 trillion bill that would help fund child care, education, and health care. In order to help pay for the cost of the huge act, Biden’s plan calls for targeting tax fraud while raising taxes on those with high-income brackets so the ‘rich pay their fair share.’
House Democrats enacted tax increases law that would scale back some of President Biden’s key proposals as they work to craft a huge social spending package that could take the vote to become. the law.
Biden, who regularly names himself as ‘Middle-Class Joe,’ has repeatedly said that the rich must ‘pay their fair share.’ The Biden campaign declared that all Americans pay their fair share.
A House Ways and Means Committee draft of the law that would end the accounting trick possibly used by Biden and boost the IRS’ auditing funds.
However, the CRS report drafted by the nonpartisan Congressional Research Service indicates that Biden would owe taxes under current rules, according to the congressman who asked the research institute to review the claim.
The report doesn’t name the present U.S President, but it does analyze cases where the IRS won a judgment against taxpayers who report suspiciously low salaries from S corporations and claim most of their income as “distributions” are exempt from Medicare taxes.
But when Biden and his wife published their tax returns during his presidential campaign, they pointed that the pair saved as much as $500,000 by avoiding a 3.8% self employment tax with the S corporations.
According to the Wall Street Journal, the Bidens transferred more than $13 million in combined profits in 2017 and 2018 through S corporations while those companies paid less than $800,000 of that as income eligible for Medicare taxes – exempting the rest at a rate of 3, 8%.
“Courts have agreed with the IRS that shareholder-employees are subject to employment taxes when shareholders take distributions, dividends, or other forms of compensation in lieu of reasonable compensation,” the report read.
The report cites a number of examples, including one involving an accountant named David Watson, who raked in $200,000 a year in his company’s revenue through an S corporation while mentioning only $24,000 of it as a taxable salary. Courts concluded he deliberately paid lower taxes.
The report also showed that that the presidential tax returns are only checked automatically for the period of the four-year presidential term.
What do people say about Biden’s tax fraud?
Representative Jim Banks, chairman of the conservative Republican Study Committee shared his opinion about the narrative that Biden owes up to $500 in black taxes, “Joe Biden wants to raise taxes by $2.1 trillion while claiming the rich need to pay their ‘fair share.’ But in 2017, millionaire Joe Biden skirted his payroll taxes — the very taxes that fund Medicare and ObamaCare.”
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.” He added, “Every American should know about Joe Biden’s tax hypocrisy.”
He also revealed that the report indicates Biden took advantage of ‘S corporations’ to reduce his Medicare tax on speaking fees and book sales in 2017 and 2018.
New York Congressman Chris Jacobs said, “Given that the liberal Tax Policy Center and the nonpartisan Congressional Research Service both have raised questions about the way Biden handled his taxes, why doesn’t he ask for his own taxes to get audited first?’
Jacobs continued, “Biden doesn’t really believe in expanding programs like Medicare and ObamaCare, because he thought buying a second multimillion-dollar mansion, and renting a third, was more important than helping to fund those laws.”
John Bogdanski, who worked as a member of the IRS Commissioner’s Advisory Group said, “There are millions — literally millions — of S corporations. So there might be a half a million S corporations that are playing this game.” “And the IRS doesn’t have anywhere near enough of a budget to bring a half a million cases every year.”
Bogdanski believed that Biden wouldn’t have to pay Medicare taxes for the income made off by others, which could be complex to determine. He said that the rich often made assumptions in their favor and ignore them.
Biden should pay a price for tax avoidance trick
Biden multi million dollar mansion avoided paying Medicare tax, millionaire Joe Biden skirted his payroll taxes, the rich paying their fair share, Biden used ‘S corporation’ to avoid taxes that fund Medicare on speaking fees and book sales. What do you think about these matters?
For me, it wouldn’t be acceptable if the president owed back taxes. What shameful! Biden represents the United States so he should set a good example for Americans.
The rise of the Covid-19 delta variant, the US withdrawal from Afghanistan, wildfires, hurricanes, a wave of crime sweeping in Portland, evictions, inflation, and now is the narrative of Biden owing back taxes gone viral on the Internet and flooded social media. All these issues have all beaten Biden’s approval ratings, made him lose points for in the eyes of others, and made White House staffers exhausted. That’s why hundreds of anti-Biden items are produced to show disappointment and objection to the president. Here are some notable ones:
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