(TJVNEWS.COM) President Biden has come under fire by House Republicans for ‘hypocritically’ using an IRS loophole to avoid paying taxes on $13 million in income for tax years 2017 and 2018, while slamming wealthy Americans for using similar schemes to minimize their tax burden, according to Fox News.
In a scathing letter(LINK) from the leader of a House conservative caucus Rep. Jim Banks (R-IN), the Bidens’ used two S-corporations, the CelticCapri Corporation and the Giacoppa Corporation, to funnel proceeds from book royalties and speaking appearances, “avoiding self-employment payroll tax liabilities that would have flowed to America’s Medicare program that provides care to over 60 million seniors.”
“Tax experts have questioned the propriety of diverting funds raised from one’s own intellectual property through an S-corporation,” the letter continues. “Even your own failed OMB nominee, Neera Tanden, while she was running the Center for American Progress, described this practice as a “loophole.”
“Your hypocrisy is highlighted by the fact that Medicare faces significant funding shortfalls,” Banks continues in the March 25 letter. “Just this year, the Congressional Budget Office estimated its Hospital Insurance Trust Fund will face insolvency in the middle of the Fiscal Year 2026—roughly five years from now.”
“Moreover, during the presidential campaign, you said ‘ObamaCare is personal to me,” the letter adds. “And your administration has sought to expand ObamaCare wherever possible. Yet, you and your wife avoided paying $121,000 in Obamacare payroll taxes.”
Here comes the irony, as Zero Hedge pointed out
Under IRS rules, an S-corporation – a partnership with fewer than 100 shareholders – may pass income directly to shareholders to avoid double taxation. The Bidens, through CelticCapri and Giacoppa Corps. reported $13 million that wasn’t subject to self-employment taxes, while paying the Bidens under $800,000 in salaries.
During his 2020 Democratic National Convention acceptance speech in August, Biden specifically called for ending tax loopholes used by the wealthy.
“Because we don’t need a tax code that rewards wealth more than it rewards work. I’m not looking to punish anyone,” said Biden. “Far from it. But it’s long past time the wealthiest people and the biggest corporations in this country paid their fair share.”