The so-called Inflation Reduction Act of 2022 could very well be called the Internal Revenue Service on Steroids Act. The agency is set to get 87,000 new agents and nearly $80 billion more in funding over the next decade.
The Senate rammed it through without one sliver of Republican support, and the House is expected to do the same by the weekend. It will then go to President Joe Biden’s desk where it will be signed in record time.
Supporters of the spending bill that throws money at climate change like no other in U.S. history claim it will reduce the deficit.
They point towards the 15% minimum corporate tax on large businesses and the 1% excise tax on stock buybacks. Tax increases.
Out of touch Senate democrats think electric cars, solar panels & hiring 87000 new IRS agents is more important than dealing with high prices, crime and an open border
— Marco Rubio (@marcorubio) August 7, 2022
What they are remarkably silent on are the measures that bulk up the IRS to levels the agency has never seen. Some lip service is given to clearing up a backlog of refunds, but that does nothing for the deficit.
What will achieve the Democrats’ goals are audits and legal actions against filers. These will include working families and small businesses who are struggling to get by in Biden’s inflationary economy.
Democrats deny this and say that they are primarily going after wealthy individuals. But with $46 billion of the new funds targeted for audits, critics say that the process largely captures average working Americans in its nets.
Ben Wilkerson of North Mississippi Legal Services points out that many of the targets are actually low-income workers. He is a managing attorney with the firm that assists families in lower brackets who are audited by the IRS.
These are the powerless who cannot afford high-priced lawyers and years of litigation. That means that cases are wrapped up quickly and put in the “win” column. Others may take years and resources that the agency would rather avoid.
Syracuse University conducted a study recently that flew in the face of Democrats’ claims. The poorest U.S. families are five times as likely to be audited than everyone else, and that’s not all.
Merely 2% of millionaires faced an IRS audit in 2021.
Syracuse professor Dr. Susan Long sees an upside to the IRS’ additional workforce and budget. She called it ‘revolutionary” and said that the agency has been “starving for resources” to change its focus.
Maybe. But squeezing hard-working taxpayers more is not the most efficient way to correct damage Democrats have wrought onto the economy. And it’s certainly not sound fiscal policy to base hundreds of billions in wasteful spending on.