Republican Study Committee chairman Rep. Jim Banks rebuked Biden for calling on the nation’s richest to pay their ‘fair share’ after the revelation of S Corp.
President Biden and First Lady Jill Biden They saved up to $500,000 by routing the $13 million they received Book sales and speeches through S Corporations in 2017 and 2018 were criticized by at least one Republican, according to a Congressional Research Service report.
It’s not uncommon for wealthy individuals and politicians to try and protect their income by using some call for tax loopholes, but what Republicans see as hypocrisy from the president has led to billionaires supporting tax proposals. . On Friday, the president told reporters, “I think it’s just about paying your fair share, for God’s sake.”
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Republican Study Committee chairman Rep. Jim Banks lashed out at Biden for asking the nation’s richest people to pay his “fair share” to help finance a $2.1 trillion infrastructure plan.
He said in 2017, “Multi-millionaire Joe Biden slashed his payroll taxes—the taxes that fund Medicare and Obamacare. According to the criteria CRS provided to my office, he’s hundreds behind the IRS and the American people.” Thousands of dollars are owed. Taxes. Every American should know about Joe Biden’s hypocrisy.”
Banks said reports indicated Biden improperly used “S Corporation” while he and his wife earned more than $13 million on speaking fees and book sales in 2017 and 2018, but This could have been calculated as a salary of less than $800,000. taxed for Medicare.
The CRS report may be new, but the Wall Street JournalImported on Biden’s use of the “tax-code loophole” [President] Obama tried to plug.”
Tony Nitty, an accountant at Rubinbrown LLP who reviewed the returns, told the paper in his 2019 report that “there’s no reason for these to be in an S corp — none other than to save on self-employment tax.”
The Biden campaign told the newspaper at the time that the couple had an effective federal tax rate of more than 33% in 2017 and 2018. The campaign said the Bidens are committed to ensuring that “all Americans pay their fair share.” The White House did not immediately respond to an after-hours email from Granthshala Business on Sunday night.
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The White House pointed to a campaign statement earlier this week that said salaries were “reasonable and determined in good faith, given the nature of the entities and the services they provide,” the statement states, the use of corporations as a “common way for taxpayers who have external sources of income to consolidate their income and expenses.”
The Journal said S-corp owners have the ability to avoid paying a 32.8% tax on their profits “as long as they pay themselves ‘reasonable compensation,’” which is difficult to define definitively.
Granthshala Business’ Michael Lee contributed to this report