Report: Biden avoided $500,000 in Medicare, Obamacare taxes using the tax loopholes he complains about

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The following article contains editorial content written by a retired police chief and current contributing writer to Law Enforcement Today.

WASHINGTON, DC- During the presidential campaign, we often heard Joe Biden and Democrats accusing President Trump of failing to pay taxes on certain income.

All the while, however Biden himself had used the very tax loopholes he had criticized in order to shelter his own income, and in the process avoided paying Obamacare taxes, the New York Post is reporting.

Rep. Jim Banks (R-IN), Republican Study Committee Chairman, slammed Biden in a March 25 letter to the cognitively declining current occupant of the White House.

In 2017, 2018, and 2019, Biden and his wife, “DOCTOR” Jill Biden, who were then in the private sector slid around $13 million in book royalties and other income through to S-corporations—the CelticCapri Corp. and the Giacoppa Corp—in order to avoid paying tax on $13 million, Banks said, citing media reports.

The Post noted that S-corporations do not pay federal income taxes, and the payroll taxes which Biden avoided would have gone toward funding Medicare—or more accurately, Obamacare.

Banks claimed in the letter that the income funneled through the S-corps came from speaking fees, as well as the royalties from books written by the Bidens.

According to Breitbart, Biden complained while remarking about his national debt-exploding $2 trillion “infrastructure” scheme, saying “millions of Americans lost their jobs last year while the wealthiest one percent saw their net worth increase by $4 trillion,” going on to say “it just shows you how distorted and unfair our economy has become.”

Biden conveniently ignored during his remarks the fact that small mom and pop businesses were closed by power-hungry, primarily Democratic governors, which means that rich oligarchs like Amazon owner Jeff Bezos were able to pad their income.

Biden also conveniently forgot to mention that he and his wife had avoided paying taxes on that cool $13 million in income.

In his letter, Banks asked Biden if he would address the “legally dubious tax strategy” the Bidens had used in order to avoid paying roughly $500,000 in payroll taxes.

He went on to accuse the couple of using “S-corporations” in which “[Biden] and the First Lady sheltered over $13 million” rom taxes which are designed to support Medicare and the Affordable Care Act, i.e. Obamacare.

Banks wrote:

“Press reports indicate that you both directed revenue from book royalties and speaking appearance fees into these two corporations avoiding self-employment payroll tax liabilities that would have flowed to America’s Medicare program that provides care to over 60 million seniors.”

Banks referenced a Wall Street Journal article from July, 2019 where a Tax Policy Center analyst said:

“There’s no reason for these [earnings] to be in an S-Corp—none, other than to save on self-employment tax.”

A previous report in Breitbart noted that “on much of the income Joe and Jill Biden generated through the corporations they established to pay themselves—CelticCapri and Giacoppa are the names of the two so-called S-corporations—they did not have to pay payroll taxes collected to fund Social Security and Medicare.”

The Post noted that old “lunch bucket” Joe had written two memoirs—“Promises to Keep” in 2007, and “Promise Me, Dad” in 2017—while “DOCTOR” Jill wrote a 2012 children’s book, “Don’t Forget, God Bless Our Troops.”

Jill Biden also wrote a memoir in 2019, “Where the Light Enters,” and another children’s book last year, “Joey: The Story of Joe Biden.”  Allegedly, the proceeds from those books are not covered under the tax returns raised by Banks.

In an appearance on Fox News, Banks said:

“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,” while promising changes to come next year.

“When we take back the House in 2022,” Banks said, “Oversight [Committee] Republicans won’t forget about Biden’s legally dubious tax avoidance schemes.”

Banks slammed the Democrats, saying their “hypocrisy is limitless,” and noted their rhetoric about closing tax loopholes doesn’t necessarily apply to everyone.

“The ACA imposed higher taxes on millions of Americans, but not on Joe Biden. He paid $121,000 less in Obamacare taxes thanks to an obscure tax loophole. Talk about inside baseball,” Banks railed to Fox News.

“Joe Biden advocated for expanding Medicare, and is pushing to close tax loopholes and for a $3 trillion tax hike,” Banks continued.

“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.”

While the tax move is not illegal, it provides a bit of a political pickle for 46. He has spent years if not decades complaining about these tax loopholes, and since Obamacare was dumped on the American people by Barack Obama and Chief Justice John Roberts, Biden has been an ardent backer of Medicare and Obamacare.

When the Wall Street Journal report was released in 2019, Biden’s campaign defended his actions.

“The salaries earned by the Bidens are reasonable and were determined in good faith, considering the nature of the entities and the services they performed,” the statement said, while calling the scheme “a common method for taxpayers who have outside sources of income to consolidate their earnings and expenses.”

In his letter to Biden, Banks closed with:

“Do you intend to undo your hypocrisy and pay these taxes back to the American people?”

The Post reached out to Biden’s people for comment, however they did not respond.

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Last year, Law Enforcement Today reported on the Biden’s tax hijinks. For more on that, we invite you to:

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The following article contains editorial content written by a retired Chief of Police and current staff writer for Law Enforcement Today

WILMINGTON, DE- We have heard ad-nauseum Democrats claiming that President Trump has “avoided” paying income taxes and had only paid $750 in taxes, while ignoring the fact that the president had in fact paid millions of taxes in the form of the AMT or Alternative Minimum Tax.

That point was ignored by Fox News’ Chris Wallace in the first presidential debate in September. What Wallace should have been doing is investigating Joe Biden’s own skirting of paying taxes. We’ll explain.

Prior to the debate, Biden conveniently released his 2019 tax returns. This was of course a publicity stunt, so Biden could say that he made his tax returns public. However, as always, the devil is in the details.

Christopher Jacobs in The Federalist, however found those details. If you’ve been following Biden’s “campaign,” one common theme that he’s been complaining about is a claim that President Trump is going to gut Obamacare.

Biden has continuously claimed  to be a strong supporter of the so-called Affordable Care Act. However, Jacobs found out that Biden does not put his money where his mouth is.

Jacobs had noted in 2019 that based on Biden’s 2017 and 2018 tax returns, the Biden’s implemented a tax avoidance strategy which enabled them to avoid over half a million dollars in Medicare and Obamacare taxes. After digging in to the Biden’s 2019 tax returns, they did the same thing last year.

For all of Biden’s wailing about President Trump not paying taxes, he has his own tax avoidance strategies to answer for. So, how did this work?

According to Jacobs, Joe and Jill Biden took income from book royalties and speaking fees and channeled it through two S-corps—CelticCapri Corporation and Giacoppa Corporation. The Biden’s made sure to pay themselves small, modest salaries through the corporations and paid Social Security and Medicare taxes on that modest income.

The book and speech income—which amounted to over $13.5 million—was taken not as wages, but as profits from the two corporations. What did that accomplish? It allowed the Biden’s to avoid paying payroll taxes on that $13.5 million. Pretty nice little windfall. It works as follows.

Social Security taxes, Jacobs says, is only applied to the first $132,900 of income in the year 2019, they didn’t avoid paying taxes that fund SS.

However, Medicare taxes apply to ALL income, as well as the 0.9% “high-income” tax which was created in Section 9015 of Obamacare, which is levied on all wage income over $200,000 for an individual, $250,000 for a family.

By taking their income as corporate profits, Jacobs said, Joe and Jill Biden avoided paying the combined payroll tax of 3.8% on the $13.5 million in income received between 2017 through 2019.

Report: Biden avoided 0,000 in Medicare, Obamacare taxes using the tax loopholes he complains about
Biden 2017-2019 Taxes Avoided info obtained https://thefederalist.com/2020/09/30/why-doesnt-anyone-ask-joe-biden-why-hes-dodging-obamacare-taxes/

The reason for the apparent significant drop last year is likely attributed, Jacobs says, to reduced speaking fees after Biden began his presidential campaign.

So, for all Biden’s whining and moaning about President Trump not paying “income tax,” and trying to gut Obamacare, Joe and Jill Biden have been avoiding paying into Obamacare like the rest of Americans are stuck with.

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As Jacobs notes, over three years the Biden’s avoided paying over half-a-million dollars in taxes, a significant amount.

In laymen’s terms, the Biden’s avoided $391,912 in Medicare taxes between 2017-2018, while the Urban Institute found a couple with average earnings, retiring this year would pay a combined $161,000 in Medicare taxes during their working career.

The above graph should be run by the Trump campaign twice an hour, every hour on every major network in the country. Americans are getting played by the Democrats and the Biden campaign about the tax issue when Biden himself has been gaming the system.

Still, the Biden campaign, Jacobs said, continues to run ads in which Biden claims that Obamacare “is personal to me.”

Democrats are hoping to create fear in people by claiming the Supreme Court will overturn the ACA and Biden has given the illusion that the act is “personal” to him. If that is truly the case, Jacobs posits, why did the Biden’s go out of their way to avoid paying Obamacare taxes?

Democrats have been demanding the release of Trump’s tax returns and the attorney general in New York filed suit in order to gain access. They claim it is for what they call “nonpartisan oversight purposes,” however where is the call for an IRS audit of Biden’s taxes?

In 2017, Biden earned $10 million in corporate profits, yet paid himself a measly salary, which Jacobs notes might actually be a violation of IRS compensation guidelines.

Biden has also been making the claim that President Trump is attempting to “gut” Social Security. When the president implemented a partial suspension of the payroll tax earlier this year, Biden called it:

“…the first shot in a new, reckless war on Social Security. Our seniors and millions of Americans with disabilities are under enough stress without Trump putting their hard-earned Social Security benefits in doubt.”

As Jacobs noted in a Wall Street Journal op-ed in August, the maximum payroll tax that would have been $1984—which was less than 1/250th the amount Biden circumvented in 2017-2018.

Jacobs said that in 2017 and 2018, Social Security tax only applied to the first $127,200 of income in 2017 and $128,400 in 2018. Under Biden’s tax plan the 12.4% Social Security tax would apply on income over $400,000, which means the same loophole he used in 2017-2018 would protect him from his own tax. How convenient.  

Biden is a hypocrite, plain and simple. He takes the typical “good for thee, but not for me” mantra and applies it to his taxes. He wants everyone else to pay for Social Security, Medicare, and Obamacare but not he and his wife.

Unfortunately, we do not have a media who is interested in facts and truth. They are only interested in propping up Biden, a clearly cognitively declining man who should be sailing into the sunset of his years instead of running for the most important position in the world. They focus on the president’s tax returns and ignore Biden’s. And that is a crime.

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