Biden Sacrifices Ethics to Prove a Point re Loop Holess
Apr 5, 2021 19:50:56 GMT
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Post by icemandios on Apr 5, 2021 19:50:56 GMT
Republicans Slam 'Hypocritical' Biden For Funneling $13 Million Through Tax Loopholes
BY TYLER DURDEN
MONDAY, APR 05, 2021 - 12:46 PM
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 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 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."
In a statement to Fox News, Banks said that "House Democrats used their oversight power to subpoena Trump for his tax returns, but they’ve completely ignored Joe Biden’s abuse of our tax code," adding "When we take back the House in 2022, Oversight [Committee] Republicans won’t forget about Biden’s legally dubious tax avoidance schemes."
In the minority, congressional Republicans – many of whom have called for oversight of Biden’s handling of the border crisis or of potential conflicts of interest regarding his son Hunter Biden’s overseas business – lack the authority to compel Biden or his administration to provide information on any matter. But, as Americans witnessed during the previous administration, the issues Democrats continuously talked about in 2017 and 2018 – including President Trump’s taxes – became fodder for investigative hearings after Democrats held a House majority beginning in 2019.
The Biden tax savings demonstrate "Democrat hypocrisy is limitless," Banks said, contrasting this with both the president’s public policies and the working-class image Biden cultivated throughout his political career.
"The ACA imposed higher taxes on millions of Americans, but not Joe Biden. He paid $121,000 less in ObamaCare taxes thanks to an obscure tax loophole. Talk about inside baseball," Banks told Fox News. "Joe Biden advocated for expanding Medicare, and is pushing to close tax loopholes and for a $3 trillion tax hike. At the same time, ‘Amtrak Joe’ made $13 million through speaking fees in just three years, then skimped over $500,000 from Medicare recipients through tax loopholes." -Fox News
The Bidens' technically legal tax scheme was first reported by the Wall Street Journal in July, when the outlet noted the $500,000 in savings after the Bidens avoided paying 3.8% in Medicare payroll taxes by shifting book royalties and speaking-related income into their S-corporations.
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."
BY TYLER DURDEN
MONDAY, APR 05, 2021 - 12:46 PM
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 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 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."
In a statement to Fox News, Banks said that "House Democrats used their oversight power to subpoena Trump for his tax returns, but they’ve completely ignored Joe Biden’s abuse of our tax code," adding "When we take back the House in 2022, Oversight [Committee] Republicans won’t forget about Biden’s legally dubious tax avoidance schemes."
In the minority, congressional Republicans – many of whom have called for oversight of Biden’s handling of the border crisis or of potential conflicts of interest regarding his son Hunter Biden’s overseas business – lack the authority to compel Biden or his administration to provide information on any matter. But, as Americans witnessed during the previous administration, the issues Democrats continuously talked about in 2017 and 2018 – including President Trump’s taxes – became fodder for investigative hearings after Democrats held a House majority beginning in 2019.
The Biden tax savings demonstrate "Democrat hypocrisy is limitless," Banks said, contrasting this with both the president’s public policies and the working-class image Biden cultivated throughout his political career.
"The ACA imposed higher taxes on millions of Americans, but not Joe Biden. He paid $121,000 less in ObamaCare taxes thanks to an obscure tax loophole. Talk about inside baseball," Banks told Fox News. "Joe Biden advocated for expanding Medicare, and is pushing to close tax loopholes and for a $3 trillion tax hike. At the same time, ‘Amtrak Joe’ made $13 million through speaking fees in just three years, then skimped over $500,000 from Medicare recipients through tax loopholes." -Fox News
The Bidens' technically legal tax scheme was first reported by the Wall Street Journal in July, when the outlet noted the $500,000 in savings after the Bidens avoided paying 3.8% in Medicare payroll taxes by shifting book royalties and speaking-related income into their S-corporations.
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."
