Jim Banks: Joe Biden Skirting Taxes While Pushing for Higher Taxes
Rep.
Jim Banks (R-IN) said Friday a government report suggested that President Joe Biden avoided paying payroll taxes; Biden’s $3.5 trillion infrastructure bill would raise taxes on Americans making over $50,000 per year. Banks, the chairman of the RSC, said that a Congressional Research Service (CRS) report implied that Biden improperly avoided paying Medicare taxes. This might raise the possibility that Biden could owe the IRS as much as $500,000 in back taxes. Biden and first lady Jill Biden put more than $13 million in income through S corporations and counted less than $800,000 of it as eligible for Medicare taxes, the Wall Street Journal reported in 2019. “The CRS report doesn’t name Biden but analyzes cases in which the IRS won a judgment against taxpayers who paid themselves suspiciously low salaries from S corporations and counted most of the revenue as “distributions” exempt from the Medicare tax,” the New York Post noted.
The report follows as Biden and congressional Democrats continue to push their $3.5 trillion infrastructure bill, which according to the Joint Committee on Taxation (JCT), would raise taxes on Americans making more than $50,000 annually.
The House Ways and Means Committee draft of the bill would end Biden’s use of S corporations to avoid Medicare taxes. Rep. Jim Banks (R-IN), the chairman of the House Republican Study Committee (RSC), said Friday: 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. “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. Every American should know about Joe Biden’s tax hypocrisy,” the Hoosier conservative added.
The CRS report found, “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 White House has said that the Bidens’ S corporations are dormant, meaning that the IRS would not automatically review his use of those corporations to potentially skirt Medicare taxes. Sean Moran is a congressional reporter for Breitbart News. Follow him on Twitter @SeanMoran3.
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