Is the Democrats’ IRS Expansion a Good Idea?
The Democrats’ Inflation Reduction Act contains almost $80 billion for the IRS to beef up its enforcement and collection. Is this a good idea?
If we’re going to collect taxes, the agency that does it should operate as efficiently and effectively as possible.
If we can agree on [that], it’s obvious that we ought to give the IRS the funding it needs to do its job.
Most of the money, though, is for stepped-up enforcement — to help the IRS collect more of the estimated $600 billion in taxes that go unpaid every year, much of it owed by rich people who under-report their income.
First, to be clear: This isn’t just about catching cheaters. Innocent, middle-class taxpayers get audited frequently — and the time, effort, and sometimes professional legal or accounting help needed to prove the original tax returns were correct can cost even more than the amount in dispute.