A Democrat who occupies the Oval Office could owe the federal government hundreds of thousands of dollars in back taxes, new documents revealed.
Joe Biden potentially avoided paying up to $500,000 in payroll tax before he came into office. That is one conclusion from an updated memorandum of Internal Revenue Service (IRS) audits of the president and “S corporations.”
The New York Post revealed the Democrat improperly used “S corporations” to avoid paying Medicare tax on speech and book income between 2017 and 2018. S corporations are entities that let owners to avoid paying self-employed workers certain taxes.
The Congressional Research Service (CRS) came up with the estimate from the updated memo, which did not mention Biden by name. The document analyzes cases where the IRS won a judgment against taxpayers who improperly used S corporations.
Rep. Jim Banks (R-Ind.) believes there is sufficient evidence to suggest the president improperly avoided paying taxes.
“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,” the Republican study committee chairman said according to the paper.
The congressman wants Biden to repay every cent he owes to the American people.
“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,” Banks said. “Every American should know about Joe Biden’s tax hypocrisy.”
The Wall Street Journal previously revealed Biden and First Lady Jill Biden routed more than $13 million through S corporations, and counted nearly $800,000 of it as salary eligible for the Medicare tax. This exempted the rest from the 3.8 percent rate.
The Democrat vigorously defended his tax return history.
“As demonstrated by their effective federal tax rate in 2017 and 2018–which exceeded 33 percent–the Bidens are committed to ensuring that all Americans pay their fair share,” the Biden campaign team said in a statement obtained by the Washington Times.
The Democratic Party is pushing for a massive $3.5 spending trillion bill to fund new child care, education, and health care benefits. It wants to achieve this through raising tax rates on the wealthy and corporations.
The president also wants to close tax loopholes similar to the one he allegedly used.