Joe Biden was labeled as “Tax Cheat” (Photo: CNBC)
Sen. Rick Scott released an ad labeling Biden a “tax cheat” after President Joe Biden took a veiled shot at him during the State of the Union address. Biden was first scrutinized in 2019 for using what one nonpartisan expert described as an “aggressive” but not illegal tactic on his 2017 and 2018 tax returns to avoid paying a Medicare tax.
The White House is using a new defense of that tax maneuver, which it claims the IRS approved, though some tax experts are skeptical.
Scott fired off his “tax cheat” allegation in an ad after Biden jabbed Republicans during the State of the Union, saying, “Instead of making the wealthy pay their fair share, some Republicans want Medicare and Social Security to sunset. I’m not claiming a majority.”
The line drew catcalls from some Republicans, including Rep. Marjorie Taylor Greene, who shouted “liar.” As we wrote, the president has exaggerated Republican support for a proposal from Scott that said: “All federal legislation sunsets in 5 years. If a law is worth keeping, Congress can pass it again.” Scott, the former chairman of the National Republican Senatorial Committee, has stated that his goal is to “fix” the programs rather than eliminate them.
As previously stated, the claims about cutting $280 billion from Medicare and funding “80,000 new IRS agents” are false.
READ ALSO: Here’s How To Appeal Your Results Of A Tax Audits
Joe Biden was labeled as “Tax Cheat” (Photo: New York Post)
S Corporations of Biden
The Wall Street Journal first raised the issue of Biden’s taxes in July 2019, when he was running for president, shortly after Biden released federal and State tax returns for 2016, 2017, and 2018 on his campaign website.
Biden Attempts to Close ‘Loophole’
Whatever one thinks of the Bidens’ strategy, it is worth noting, as the Wall Street Journal did, that the Obama administration attempted, but failed, to close this tax “loophole.”
The technique of forming S corporations to avoid paying payroll taxes became known as the “Gingrich/Edwards” tax loophole because it was used by Newt Gingrich, a former House Speaker and Republican presidential candidate, and John Edwards before he became a senator and Democratic vice presidential nominee.
New White House Security
However, the Biden administration is now making a different case. According to a White House official, the IRS reviewed the Bidens’ S corporation income, including whether the 3.8% Medicare tax should apply, during an audit of their 2021 tax return.
‘Cuts’ to Medicare and IRS Agents
Regarding the other claims in Scott’s ad that Biden is a tax cheat, this isn’t the first time Scott has claimed that the Democrats’ Inflation Reduction Act would cut Medicare by $280 billion. However, as previously stated, this is deceptive. The law aims to reduce prescription drug costs by allowing Medicare to negotiate some drug prices.
READ ALSO: Billionaires Like Elon Musk Might be Needing to Pay More Taxes in Biden’s Administration
