After President Joe Biden in a speech touting his infrastructure plan talked about the wealthiest Americans seeing their net worths soar in 2020 and said he was proposing “a plan for the nation that rewards work, not just rewards wealth” that would build a “fair economy that gives everyone a chance to succeed,” Republican lawmakers hit back. They went after him for talking about closing corporate loopholes and deductions, which they pointed out he has used to shelter millions of dollars.
In a letter signed by Rep. Jim Banks (R-IN), chair of the Republican Study Committee, the GOP called Biden’s statements “hypocrisy” and stated that he used a “tax shelter strategy derived by the left to avoid paying Obamacare taxes.”
“Over the past several years, you and the First Lady, through a legally dubious tax strategy, appear to have avoided payment of over $500,000 in payroll taxes. As you may know, these payroll taxes fund Medicare for our nation’s seniors, and were increased by President Obama’s Affordable Care Act.”
The letter noted that in 2017, 2018 and 2019, tax records reveal that Biden and his wife, Jill Biden, sheltered over $13 million of income in two S-corporations, which enabled them to protect book royalties and speaking appearance fees from self-employment payroll taxes. It stated that “tax experts have questioned the propriety of diverting funds raised from one’s own intellectual property through an S-corporation,” referencing an article in The Wall Street Journal which stated that the sole reason for doing so was to avoid paying self-employment taxes.
“Your hypocrisy is highlighted by the fact that Medicare faces significant funding shortfalls. Just this year, the Congressional Budget Office estimated its Hospital Insurance Trust Fund will face insolvency in the middle of fiscal year 2026,” said the letter.
The letter went on to remark on the hypocrisy of Biden saying during his presidential campaign that “Obamacare is personal to me.”
“According, we ask one simple question: Do you intend to undo your hypocrisy and pay these funds back to the American people?” Banks asked.