We all know why. They know the IRS will go after everyone but the rich.
The Internal “Revenue” Service (IRS) will hire 87,000 new agents, doubling its size. More audits!
Of course, non-leftists have concerns the IRS will target them. We have legit reasons to have those worries.
The Biden Administration tries to tell us that no one will target us. The IRS will only go after those millionaires and billionaires!
We’re not stupid. We know the rich have fantastic accountants who can spot every deduction and write-off in the tax code, so they don’t pay their supposed “fair share.”
Therefore, we know the IRS will come after everyone else. Those making $0-$50,000 will be hit the hardest.
The Joint Committee on Taxation (JCT) estimated that 70-90% of the new “revenue” from new audits would come from those making under $200,000. They should take “$206 billion over the 2022-31 budget window.”
Thomas Barthold, Chief of Staff of the JCT, wrote, “As the table shows, more than half of the assessed amounts are estimated to come from taxpayers with reported income between zero and $50,000.”
But CNN told me that Treasury Secretary Janet Yellen directed the IRS not to use any of its new funds “to increase the chances of Americans making less than $400,000 a year getting audited.” You can read the letter here.
CNN included a paragraph in which Yellen contradicted herself:
“Specifically, I direct that any additional resources—including any new personnel or auditors that are hired—shall not be used to increase the share of small business or households below the $400,000 threshold that are audited relative to historical levels,” Yellen wrote in the letter to Rettig. “This means that, contrary to the misinformation from opponents of this legislation, small business or households earning $400,000 per year or less will not see an increase in the chances that they are audited.”
So, as Isabelle Morales at Americans for Tax Reform points out, the share of audits won’t change:
Yellen claims that “small business[es] or households earning $400,000 per year or less will not see an increase in the chances that they are audited.”
However, in the same letter, she clarifies that it is the share of audits that will not change:
“Specifically, I direct that any additional resources—including any new personnel or auditors that are hired—shall not be used to increase the share of small business or households below the $400,000 threshold that are audited relative to historical levels.”
Evidently, these claims cannot both be true. If the share of audits on small businesses, for example, remains constant and the IRS doubles the number of audits (as it plans to do), then twice the amount of small businesses will be audited. Certainly, this does increase the chances that companies and individuals making less than $400,000 per year will be audited.
Further, how would the agency differentiate between its use of existing resources and new resources? Is Secretary Yellen suggesting that existing funding has unlimited audit potential? The money allocated to the Treasury is all in one account. Announcing that additional resources will not be used in this way means nothing unless the agency bars all of its funds from going towards increased audits on entities and individuals below the $400,000 threshold.
The White House cannot provide a straight answer to these concerns because the simple truth is that 87,000 new IRS agents will be sicced on small businesses and working families.
Yellen also contradicted Press Secretary Karine Jean-Pierre, who said, “Very clear, no,” when asked to clarify that there won’t be new audits on those making under $400,000.
Change the tax code. If you want these rich people to pay their “fair share,” get rid of those deductions and write-offs. If I had that money, you better believe I would hire someone who could make sure I wouldn’t pay a lot in taxes.
After all, taxation is theft.
Stop spending. Taxation is theft. Repeal the 16th Amendment.DONATE
Donations tax deductible
to the full extent allowed by law.