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The report of a non-partisan congressional committee verified that President Joe Biden allegedly evaded more than $500,000 in Medicare taxes. The news comes as the president insists on passing a plan to fund Democratic government programs at a cost of $3.5 trillion, which he claims will be paid for by raising taxes on the wealthiest Americans.
The Congressional Research Service concluded that President Biden would have dodged paying taxes for more than three years by making use of loopholes in the American tax code.
During 2017, 2018, and 2019, the president and first lady, Jill Biden, reported income in excess of $13 million in two S corporations — CelticCapri Corporation and Giacoppa Corporation.
A corporation registered as an S corporation allows business income, losses, deductions and credits to be passed through to shareholders. They report income and losses on individual tax returns and pay taxes at ordinary tax rates.
Although there is nothing illegal about S corporations, apparently the income of President Biden and his wife could not have been reported under this modality, as explained by accounting expert Tony Nitty of RubinBorwn LLP, in an interview with The Wall Street Journal: “There is no reason for these to be in an S corps, none, other than to save on self-employment taxes”.
Schemes employed by President Biden and his wife included filing more than $200,000 in income in an S corporation, while the Biden’s accountant, David Watson, filed only $24,000 of taxable income with the IRS.
Biden allegedly evaded taxes with a scheme he now seeks to ban
The curious thing is that President Biden’s tax plan seeks to prohibit precisely this type of maneuvers that he and his wife would have used to evade taxes for years, as shown by the information provided by the IRS.
In addition, Biden seeks to expand Medicare coverage as well as revenue collection, as the service is currently experiencing significant budget shortfalls that are impacting its performance.
President Biden’s plan, in addition to considering a corporate tax increase, also seeks to raise taxes for individuals earning more than $400,000 a year and increase the mandatory medicare payment to 12.4 % of income for high earners.
“Joe Biden wants to raise taxes by $2.1 trillion while claiming the rich need to pay their ‘fair share.’ But in 2017, multimillionaire Joe Biden skirted his payroll taxes — the very taxes that fund Medicare and ObamaCare,” said Rep. Jim Banks (R, Ind).
The revelation calls into question the speech of President Biden, who has not only called himself “middle-class Joe” while making use of accounting maneuvers that an ordinary citizen would not have access to, but shows the hypocrisy behind the discourse that the “rich should pay their fair share,” as the President of the United States himself and his wife have not been willing to do so.
Economist, writer and liberal. With a focus on finance, the war on drugs, history, and geopolitics // Economista, escritor y liberal. Con enfoque en finanzas, guerra contra las drogas, historia y geopolítica