Dr. Mehmet Oz may have skirted paying Medicare and Social Security taxes, Democrats say

Dr. Mehmet Oz, U.S. President Donald Trump's pick to lead the Centers for Medicare and Medicaid Services, testifies at his confirmation hearing before the Senate Finance Committee, on Capitol Hill in Washington, Friday, March 14. (Ben Curtis/AP via CNN Newsource)

Dr. Mehmet Oz, who is U.S. President Donald Trump’s nominee to lead the Centers for Medicare and Medicaid Services, may have “significantly underpaid his Social Security and Medicare taxes” in recent years, according to a memo prepared by Democratic staff on the Senate Finance Committee and obtained by CNN.

A spokesperson for Oz pushed back on the claim from Democrats, saying that the doctor is compliance with the law.

Oz, who appeared before the committee Friday for his confirmation hearing, paid “negligible” Social Security or Medicare taxes in 2022 and no such taxes in 2023 – avoiding US$440,000 in levies, according to the memo and Sen. Ron Wyden, the committee’s ranking member.

The celebrity doctor would be responsible for overseeing Medicare if he is confirmed. CMS provides health care coverage to more than 160 million Americans through Medicare, Medicaid and the Affordable Care Act health insurance exchanges.

Oz took the position that he was not liable for certain taxes – including a self-employment tax, known as SECA – on income from his media entity Oz Property Holdings, the memo said.

“What that means is the person who is nominated to run Medicare thinks that it’s acceptable not to pay his taxes into Social Security and Medicare, like nurses and firefights do out of every paycheck,” Wyden said at the hearing.

Oz’s accountant told the committee’s Democratic staff that the doctor was relying on the limited partner exception, which allows certain income to be excluded from self-employment earnings. But Democratic staffers contend that he was actively involved in the company that bears his name, noting that “Dr. Oz’s position is counter to the position of the Department of Treasury.”

Oz, however, told the staffers he would not amend his tax returns.

“The Office of Government Ethics has conducted an extensive review of Dr. Oz’s finances as part of the regular vetting process. OGE has transmitted to the Senate a letter indicating that any potential conflicts have been resolved, and he is in compliance with the law,” Christopher Krepich, a spokesman for Oz, said in a statement to CNN.

At least one tax expert said that Oz’s action is not against the law. “Dr. Oz’s position is aggressive, and one that I would not recommend. I would label Dr. Oz’s a dodge, but not illegal,” said Steve Rosenthal, a former senior fellow with the Urban-Brookings Tax Policy Center.

The White House did not immediately return a request for comment.

Article written by Tami Luhby, CNN