With inflation now at all-time highs and the economy still struggling, it appears that those lower-income earners are being targeted for audits.
Daily wire reports, a budget proposal submitted by the White House on Thursday would add $43 billion to the Internal Revenue Service, also known as IRS, months after the tax enforcement agency received $80 billion in the Inflation Reduction Act.
A press release from the House Ways and Means Committee reported that in addition to the $14.1 billion allocated to the IRS, the budget would provide another $29.1 billion in “mandatory funding for enforcement and operations.” Following the Inflation Reduction Act signed by President Joe Biden in August, the IRS received an $80 billion windfall.
The Treasury Secretary told the House Ways and Means Committee on Friday that the funds from the Inflation Reduction Act have resulted in “drastically improved customer service” as staffers have been able to answer “hundreds of thousands more phone calls this filing season than last year,” she said. Meanwhile, House Ways and Means Committee Chairman Jason Smith (R-MO) pressed the official about the increased tax enforcement allocation.
IRS officials have also said that the funds will make it easier for individuals and businesses to file their taxes. However, the Treasury Inspector General for Tax Administration stated in a report that enforcement activities will increase 69% over the next decade while taxpayer services will increase 9%.
According to Biden administration officials, more stringent tax enforcement enabled by additional IRS funds would improve the nation’s fiscal health. Over the next decade, the $43 billion allocated to the IRS would reduce the deficit by $134 billion.
This new funding for the IRS comes as the new IRS Chief is dodging questions about the new direction of the agency.
The Hill reports, Danny Werfel, President Biden’s nominee for IRS commissioner, was confirmed by the Senate on Thursday, 54-42. In an effort to get his nomination approved, Werfel testified before the Senate Finance Committee a few weeks earlier, on Feb. 15.
Despite Werfel’s start, there are still many questions about how he intends to improve the IRS’ numerous deficiencies, especially amid questions about political influence.
Werfel was questioned by senator Johnson regarding 90% of the tax gap in the United States being from those who make under 200k per year, and how he intends to close that gap.
It seems like an inflation joke is being played on us. President Biden has proposed adding $43 billion in additional funding for the IRS, only months after providing them with a massive windfall of $80 billion. What’s worse, half of the proposed budget increase goes exclusively to the agency’s enforcement and operations departments. Is this how the government plans on fixing inflation: going after lower income earners by providing more money to those who audit their taxes? This country is run by liars who care little about our economy, and they are taking advantage of inflation while punishing citizens instead of providing tangible solutions that will help everyone.