Juniper Research Group’s founder and CEO, Chris Jacobs, wrote an opinion piece published on July 13 by The Federalist pointing out why Congress should demand an audit of President Joe Biden’s taxes.
Jacobs points out that the current debate about the proposed infrastructure bill proposed by the Democrats for bipartisan approval should serve as the opportunity for a deeper discussion about the IRS generally and about Biden’s taxes specifically. Because the bill proposes an additional $40 billion allocation to the IRS, questions about the president and first lady’s taxes should also be addressed.
The Bidens characterized more than $13.6 million in income from 2017 through 2020 as profits from S-corporations rather than ordinary wages. It allowed them to avoid almost $517,000 in payroll taxes. Biden’s proposed budget includes provisions to close the same S-corporation loophole he and Jill Biden exploited for four years.
Even when using the loophole, tax regulations require that S-corporation owners must be paid “reasonable compensation” from the corporation’s income, which is in turn subject to ordinary payroll taxes. Biden spent himself less than 10 percent of corporate income during the relevant years as wages one year and only 1.45 percent in another.
Although Biden has regularly signaled his virtue by claiming an ethical attitude toward his taxes, Jacobs cites tax experts who have doubted the propriety of the last four years of Biden returns. Biden’s returns have been called “pretty aggressive,” and another analyst said that the only reason for the S-corporations was to avoid payroll taxes.
Biden’s tax returns from 2017 through 2020 are not automatically subject to audit, as they were filed between the time he left office as vice president and when he assumed president’s office. Given Biden’s willingness to expand the power of the IRS to audit others, it would fit for Congress to demand that he submit to a similar examination.
Jacobs points out that by adding the audit requirement to the infrastructure bill, Republican lawmakers could at least demand an up or down vote on the question of whether the president should have his returns audited.
If nothing else, the discussion may also serve to talk about why the IRS allocation is part of the nation’s “infrastructure” needs.