Congressional Research Service report shows Democrat may owe $500k to IRS
Democrat Joe Biden could owe the IRS up to half a million dollars in unpaid back taxes, according to a new report from a top government agency.
According to a Congressional Research Service (CRS) report, Biden may have improperly avoided paying Medicare taxes before he took office.
If the CRS report is accurate, Joe Biden and his wife Jill Biden could be hit with a staggering $500,000 tax bill from the IRS.
“Joe Biden wants to raise taxes by $2.1 trillion while claiming the rich need to pay their ‘fair share’,” said Rep. Jim Banks, who chairs the conservative Republican Study Committee.
“But in 2017, multi-millionaire Joe Biden skirted his payroll taxes — the very taxes that fund Medicare and Obamacare.”
Banks said the report indicated that Hunter Biden‘s father improperly used “S corporations” while he and Jill Biden raked in over $13 million on speaking fees and book sales in 2017 and 2018.
However, the pair counted less than $800,000 of it as a salary that could be taxed for Medicare, accoridng to Fox News.
Biden is leading the charge to pass 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 massive legislation, Biden’s plan calls for targeting tax avoidance while raising taxes on people in high-income brackets who Biden claims don’t “pay their fair share.”
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, 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,” said John Bogdanski, who served as a member of the IRS Commissioner’s Advisory Group.
“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.”