Trump cleverly used business losses to reduce the tax burden on his individual income.
Biden cleverly used a business structure to avoid onerous Social Security and Medicare taxes.
Trump and Biden correctly understood that it would be better to have income stay in their families rather than surrendering it to the IRS, where it would be then be transferred to – and misspent – by the nation’s most short-sighted and wasteful people.
I’m revisiting this topic today because Lauren Weber has a story in the Washington Post about one of President’ Trump’s appointees using the Biden strategy to protect his money from wasteful politicians.
Here are some excerpts.
Mehmet Oz, President Donald Trump’s nominee to lead the Centers for Medicare and Medicaid Services, avoided paying some Medicare and Social Security taxes over the course of three years by leveraging an accounting tactic… Senate Finance Committee Democratic tax…staffers allege he would have avoided over $440,000 in taxes for programs by executing a tax exemption related to limited partnerships. …Four tax experts The Post spoke to said…many do use the law in this way… Sen. Elizabeth Warren (D-Massachusetts), a member of the Finance Committee, argued that the findings undercut Oz’s nomination. “Not only does Dr. Oz want to gut Medicare, but he evidently cheated on his Medicare taxes. …Senate Republicans will be held accountable if they support this health care-cutting, tax-dodging nominee.”
Other than applauding anyone who protects their income from greedy government, I have two points to make.
It’s very curious that the Post‘s reporter did not mention that Mr. Oz apparently used the exact same strategy as Joe Biden. That would seem to be a relevant factoid.
It’s rather ironic that Elizabeth Warren, who is worth millions of dollars, is criticizing Mr. Oz for not voluntarily paying extra tax when she has done the same thing.
By the way, none of this is to argue that Oz is a good appointee. I have no idea whether he supports good policy or bad policy.
But I’ll defend almost anyone who strives to keep their income out of the grasping hand of government.
P.P.S. I also have utmost disdain for wealthy leftists who say they want to pay more tax, yet change their minds when given the opportunity to back their words with action.
Dan Mitchell is co-founder of the Center for Freedom and Prosperity and Chairman of the Board. He is an expert in international tax competition and supply-side tax policy.
