You are being lied to about the IRS
The IRS will get its biggest funding increase in years thanks to the Inflation Reduction Act.
Do you know who should be worried about this?
Wealthy Americans who evade taxes.
Recent figures estimate that the richest 1 percent is hiding more than 20 percent of their income from the IRS, accounting for more than a third of all unpaid federal taxes.
Some estimates show that collecting all unpaid federal income taxes from the wealthiest Americans could net anywhere from $200 trillion to $1.75 trillion over the decade.
So why hasn’t our government been able to collect all the untaxed money from the richest of the rich? Because the IRS is underfunded and severely understaffed — thanks in large part to a decade-long Republican campaign to transfer fortunes to the top.
In the last 10 years, the IRS budget has been reduced by about 20%. Staffing levels are at their highest level since 1973, even though America’s population is now about a third larger.
Additionally, the tax returns of the wealthy are very difficult, time-consuming, and incredibly expensive to audit — and wealthy taxpayers often have traits of lawyers and accountants protecting them from tax debt.
Without adequate resources, the IRS has a harder time prosecuting the wealthiest Americans who avoid paying their fair share.
As a result, just 2% of the wealthiest Americans had their taxes audited in 2019, up from 16% in 2010.
Meanwhile, the poorest Americans — who often claim a tax break known as an earned income tax credit — are five times more likely to be audited because their tax returns are less complex and because Republicans in Congress are pressuring to root out false payments of the tax credit.
When the IRS can’t function properly, not all taxpayers are equally off the hook — and the result is a tax system stuck in a cycle in which the working class takes the brunt while the rich hoard wealth that is used to invest in America could become .
So don’t believe the lies coming from the oligarchs and their propaganda machine – it’s all scaremongering. The 1% have an incentive to keep the IRS tied down and unable to dig up their hidden wealth.
They also know the public is against them — increasing the IRS budget to bolster tax enforcement for high-income taxpayers is a popular policy, supported by more than two-thirds of registered voters.
IRS funding is a good thing. It means the agency can finally target America’s real freeloaders: the super-rich.