President Biden constantly accuses others of not “paying their fair share” of taxes and even claims tax increases are “patriotic.” But Biden himself could owe up to $500,000 in unpaid taxes, according to a new report by the Congressional Research Service, published in the New York Post.
It is time for Biden to close his personal tax gap. Even the progressive Tax Policy Center called Biden’s maneuvers “pretty aggressive.”
In 2017 and 2018 Biden utilized several “S corporations” to avoid paying Medicare tax on speaking fees and book sales. These two S-corporations, the CelticCapri Corporation and the Giacoppa Corporation, allowed Biden to shield $13 million in income and avoid the 3.8 percent Medicare Payroll Tax, and the 0.9 percent Obamacare “Additional Medicare Tax.”
While Biden’s tax avoidance has been known for several years now, the CRS report analyzes cases in which the IRS won against taxpayers who used similar, aggressive tactics. As such, the report suggests that the IRS would also have a strong case that Biden owes $500,000 in taxes under current rules, as he improperly in 2017 and 2018.
As the report explains, courts have routinely determined that shareholder-employees are subject to employment taxes:
“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.”
Even Left-leaning tax experts have previously called out Biden for his “pretty aggressive” tax maneuvers, as reported by Richard Rubin of the Wall Street Journal:
“To the extent that the Bidens’ profits came directly from the couple’s consulting and public speaking, “to treat those as other than compensation is pretty aggressive,” said Steve Rosenthal, a senior fellow at the Tax Policy Center, a research group run by a former Obama administration official.”
This is clear hypocrisy as Biden supports expanding Obamacare and routinely says “the rich” need to pay their fair share. The Obama administration considered it a top priority to close this loophole. Further, Democrats’ $3.5 trillion reconciliation would prohibit this specific tactic.
Joe Biden has repeatedly railed against the “rich” using tax loopholes. For instance, during his speech at the 2020 Democrat National Committee he said loopholes should be repealed and the wealthy need to pay their fair share:
“We can pay for these investments by ending loopholes, unnecessary loopholes… Because we don’t need a tax code that rewards wealth more than it rewards work. I’m not looking to punish anyone. Far from it. But it’s long past time the wealthiest people and the biggest corporations in this country paid their fair share.”
President Biden has been championing the $3.5 trillion reconciliation bill, which includes the largest tax increase since 1968. These tax hikes will disproportionately hurt workers, retirees, consumers, and small businesses. However, they’ll be told that their involuntary sacrifice is “patriotic” and necessary. Meanwhile, politicians who impose these tax hikes, like Joe Biden, can and will use their infinite resources to avoid paying “their fair share.”
Biden needs to immediately send the IRS a $500,000 check to close his personal tax gap. Otherwise he has no moral authority to lecture and accuse everybody else.