Supersizing the IRS Will Hurt the Working Rich, Not Fat-Cat Tax Evaders
After months of acrimonious infighting, Sen. Joe Manchin (D–W.Va.) and Senate Majority Leader Chuck Schumer (D–N.Y.) have reached a deal on a spending bill, portrayed as a means of fighting inflation, that will devote federal money to climate change initiatives, clean energy, and reducing the deficit. The spending bill, called the Inflation Reduction Act of 2022, will pay for its ambitious proposals in part by doubling the size of the IRS, empowering the agency to reach its grubby little hands into ever more people’s pocketbooks.
“The Manchin-Schumer deal includes roughly $370 billion in energy and climate spending, $300 billion in deficit reduction, three years of subsidies for Affordable Care Act premiums, prescription drug reform and significant tax changes,” reports Politico.
“This is the action the American people have been waiting for,” President Joe Biden announced.
But the bill also beefs up IRS enforcement capabilities, allowing our tax cops to audit far more people than before—including many working-professional high earners, while the richest continue to employ teams of accountants to take advantage of every possible loophole (as they darn well should). Is this really what Biden thinks the American people have been waiting for?
The Democrats are about to DOUBLE the size of the IRS. Think again if you think they’re going to extract more revenue from the rich folks and corporations who already hire the smartest and costliest accountants. pic.twitter.com/W8waZylxBM
— Kyle Smith (@rkylesmith) July 28, 2022
Enrolled agent here. Someone who has seen a client’s field audit or two.
The IRS doesn’t go after the super rich with these audits. They go after the $500,000 – $1,000,000 self employed guy.
The audits are pure “gotcha” fishing expeditions against honest taxpayers.
— Ryan Ellis (@RyanLEllis) July 28, 2022
“Our major concern is that the IRS provisions of the bill contain no accountability provisions for the agency, no sort of significant oversight of its efforts to reform and improve its processes, not a ton of robust protections for taxpayers who have seen their privacy or the security of their information threatened,” Andrew Lautz, director of federal policy at the nonpartisan National Taxpayers Union, tells Reason.
The agency has been repeatedly criticized for failing to keep taxpayer information secure. In 2021, ProPublica obtained and published the private information of hundreds of the highest net worth taxpayers; it’s still unclear how the investigative journalism outlet got access to this sensitive information. In 2015, hackers s
Article from Reason.com