Biden News
Biden Wants IRS to Crack Down on Wealthy Taxpayers
President Joe Biden called on Congress to expand Internal Revenue Service funding so they go after wealthy taxpayers. A US Treasury Department report said many rich Americans hide their real income.
RELATED: Biden’s Great Economic Rebalancing
Raise $700 Billion From Wealthy Taxpayers
The Treasury Department reported that the Biden administration wants to raise $700 billion. This comes in the form of additional tax revenue over a decade. Specifically, the White House wants to improve the enforcement abilities of the IRS. However, Republican lawmakers criticized Biden’s high target. In particular, tax analysts said that the president’s estimate remains unrealistically high.
The additional revenue will help fund Biden's $4 trillion spending programs. Consequently, he wants to raise corporate taxes from 21% to 28%. In addition, he also wants wealthy taxpayers to pay more. They will shoulder the bulk of his proposed infrastructure and social programs.
Increased Transaction Reports
In addition, Biden called for additional IRS auditors and upgraded IT systems. This will allow them to increase their output auditing transactions. “The IRS will be able to deploy this new information to better target enforcement activities, increasing scrutiny of wealthy evaders and decreasing the likelihood that fully compliant taxpayers will be subject to costly audits,” the Treasury said of the proposed reporting requirements.
In addition, the Biden administration is increasingly targeting income from small businesses, rental properties, and other so-called pass-through entities. Reports estimate that the tax gap, or the difference between taxes owed and those paid, will reach $7 trillion by 2030.
GOP Warns Against Government Overreach
While both sides of Congress endorsed stronger tax enforcement, GOP lawmakers warned against government overreach. In particular, they called out the dangers of excessive account-flow reporting.
Meanwhile, congressional rules can limit the extent of applying Treasury estimates to Biden’s spending plans. At present, the Treasury wants to require banks and financial institutions to report account flows. This is information currently beyond the grasp of the IRS’s mandate. By allowing the IRS access to account flows, pass-through income, the IRS can now check if these are taxable like wages. In particular, the department estimates that taxpayers only report 45% of their income that remains invisible to the IRS. Meanwhile, 99% of employee wages are compliant with tax rates because the IRS requires employers to report it.
Well-positioned to Create Tax Shields
Additionally, the Treasury believes that wealthy taxpayers and their advisers are well-positioned to shield untaxed income. These include pass-through income, whose ultimate owner is difficult to trace. Also, capital income flowing to offshore accounts can also be difficult to trace. The gap between taxes owed and those paid for partnership, S-corporation, and proprietorship income is “estimated at around $200 billion annually with the net misreporting percentage for certain income categories exceeding 50%,” the Treasury said.
Funding For the IRS
To increase IRS audits, Biden wants additional funding of $80 billion to hire new specialized audit staff and upgrade IT systems. Consequently, the infusion will raise $320 billion in revenue long term. $80 billion will allow the agency to hire 87,000 new employees by 2031. This will virtually double the agency’s workforce.
Ultimately, the Treasury’s proposals will raise nearly all of Biden’s target of $700 billion this decade and $1.6 trillion by 2040. However, conservative estimates like the Penn Wharton Budget Model projects a much lower return at $480 billion over a decade.
Loading ...Do you support increased funding for the IRS? Do you agree that doubling the manpower of the IRS can raise the tax collection rate?
Let us know what you think about the Treasury’s proposal in increasing tax collection. Share your comments in the comment section below.
16 Comments
Americans are taxed to death. What type of idiot thinks that if you tax corporations more those cost will only increase the costs of goods down the line for the consumers. Everyone screaming to tax the rich need to be prepared for inflation.
I KNOW FOR A FACT BIDEN HAS A LOT MORE MONEY THEN MYSELF SO HE IS WILLING TO GO THE DISTANCE ON TAXES????? YEA RIGHT!!!!!
irs will never stop what happens when money runs out of other ppl money then they will come after our money irs has no business in my bank account if they can monitor account then they can take money out of accounts
Pure idiocy. Remember the Golden Rule. The man with the gold makes the rules. This is just another way to expand government. There is absolutely not one thing that the govt can do that can’t be done better in the private sector
The middle class will be stuck with the bill for the program, then the IRS will end up finding ways to take more money from the middle class and the “rich” will be untouched. If they want to get more from the rich and corporations, look at the tax laws revise them. 99% of that group legally avoids paying taxes by using the laws to their advantage.
So are they starting with members in government? Kamala and hubby own a lot of real estate they shield with trust accounts, Pelosi, Schumer and most of Congress and the Senate have way more money than they’re paid and EVERYBODY knows of Hunter’s hidden money and OUR SUCKY ILLIGIT PRESIDENT!! So investigate these crooks first!!
Of course the wealthy American Taxpayers won’t include Democrats . Joe and his cronies won’t be paying more and neither will Al Sharpton who still owes back taxes .
Doubling the man power in the IRS will only increase taxes for the lower income households. Also amazing that he cut off the amount that people can make before being taxed more above what himself and all other politicians make. Therefore they will not be paying higher taxes and the IRS will not be going after them and doing any audits there. Biden is the dumbest POS president I have seen in my 60+ years.
Go ahead, go after the rich just like France because it worked out so well for them. The rich just packed up and left France… With no tax revenue.
Fuck the IRS they are thieves!!!!’
Let’s start with biden first.
No no everybody is taxed enough they give give welfare and let our boarder let everyone in sending billions of tax dollars to every country let Our Americans sleep on the street. Stop big government stop 🛑 sending money out to other countries. Stop with all the big pockets / and Greedy stop l lobbyist in the goverment making people in the white
House Millionaires and Billionaires stop the spending now
It is unAmerican to use confiscation to fund the government. Taxes on a limited basis for military security and some other items are necessary but the dimocrats think nobody should keep what they earn from their hard work, drive, intelligence and risk taking. They only want to steal from us and feather their own nests.
Remember when voters would not vote for anyone who proposed massive tax hikes??? Well now we have became so goddamned stupid as a country that half of the idiots voting thinks over taxation is a good thing??? You absolutely cannot fix stupid!!
That’s correct no one can fix stupid because stupid voted for a rich man who only paid $750.00 taxes. Let the millionaires pay like poor people!!!! So stupid is as stupid talks
They go after the rich first. Don’t think for one minute that the middle class is next and then the poor. Oh yes the poor pay taxes. A lot. I should know, I am one.