I happen to be for the IRS actually targeting tax cheats. I know it's crazy, but that would be great IF that is what the money went to. Unfortunately we know they will target the low hanging fruit which is people who don't have the means to fight back.
I’m not an economist, but the measures in this bill don’t scream inflation reduction, to me. I’m not opposed to what they passed, but the name doesn’t really match up to the provisions. But… it’s possible that I’m missing the larger implications of the changes to the corporate tax laws.
Except that wasn't true before their budget was cut. The richest people were audited at higher levels initially. But when the staff was cut, their audit rate decreased by more than 2/3. Meanwhile, Republicans, who controlled their budget, pushed them to do EITC audits, which meant that the lower income groups only decreased by less than half. So the relative rates shifted. Read the article if you want to know more.
Likely will have a small effect because it lowers the deficit a bit. The budget deficit is inflationary. But it won't be a huge effect.
Cmon JJ... Usually posts about minorities being targets come from people leaning left. God forbid someone from the right point it out as well. A 76% minority county being the most targeted is a flag raiser at best.
This is why I mentioned politics and midterms. Yes this has been negotiated for a while, but there are the usual political games being played by all parties involved. Inflation is the buzzword du jour.
An IRS mistake left them owing me about $5k 16-17 years ago. I was a small business owner/self employed at the time and had our first born barely walking yet. $5k mattered. Took me almost 3 years to get the money. I was told time and time again it was in the "review" process. Had a person who knows the IRS better than me that told me they do that hoping you won't fight because you, a.) Dont have the means, b.) $5k isnt worth the cost. I just kept calling and sending letters, but never spent a dime of my money fighting it. All of a sudden I get a check for about $5700. (The $700 was interest that the IRS owed ME!) I say that all to say, that I believe without a doubt they fight the ones that are least likely to be able to fight back. Now what do you think would have happened if I took 3 years to give THEM money that I claimed I was "reviewing"?
Three things: 1. Unless I missed something in the actual bill, it looks like the $7500 credit for a new electric car purchase was reduced to $3750. 2. For those of us retired and receiving SSI, it looks like Medicare Part D will be going down next year. It would have probably gone down any way as they way overcharged us in 2022. It'll be interesting to see how that works in practice come January 2023 and 2024. 3. Said on page 2 that there were increased taxes for fossil fuel companies. The best I can say is these taxes are actually increased royalties paid which increases fossil fuels cost of doing business. Some of the costs per acre went up 5X. See starting on page 665.
As the article I posted stated, and Pro Publica has done the investigatory work on this, the reason is because while the budget of the IRS was being cut to the bone from 2011-2018, Republicans on the relevant committees kept pushing them to do EITC audits. In fact, they even introduced a bill that would have required yearly audits for all EITC recipients (although this, thankfully, didn't pass). House Budget Committee Proposal to Verify Incomes of All EITC Filers Would Delay Refunds, Raise Administrative Costs, and Divert IRS Resources | Center on Budget and Policy Priorities It is a little rich to cut their budget, push for them to audit the poor, then complain that the IRS is targeting the poor.
Hah hah. Cut federal spending by $14.5 billion. Let's say this came to fruition like everything we are promised by the elites in DC. $102 billion over 10 years? Currently we are $30 trillion in debt or almost 5x that if you were to include total unfunded Social Security and Medicare promises. If you watch the debt clock U.S. National Debt Clock : Real Time the 102 over 10 is like rearranging the deck chairs on the Titanic. The political class firmly had their foot on the neck of the middle class.
Are you really this gullible? It won't make any difference as long as China & India keep polluting the earth.
I think they have targeted those with less means for longer than that. This is a headline from 2010, though the article has been removed. The IRS's problem with minorities - Dec. 2, 2010 Also it needs to be mentioned that some of the gutting of the IRS was a response to Obama's IRS scandal.
As the article I posted pointed out, there pretty dramatic difference in audit rates by income in 2010, with higher income filers being more likely to be subject to an audit than lower income filers. Those differences have been diminished because of Republican's desires to cut the IRS's budget but, at the same time, audit EITC more. And yes, that was some of their stated motivation. But it continued for years later. And it was also a stated policy dating back to Gingrich. So it wasn't just that. Like I said, it is a bit rich to cut their budget, have Republicans demand that they audit the poor more, and then complain about expanding their budget because they did exactly what Republicans asked them to do.
That was a very politically slanted article originally posted in the Atlantic. Not disagreeing with it as I think an increase in audits for people making over $400k and chasing people not paying taxes at all should be the goal, just don't know how true everything is in the article. I just don't think they will do it. Easy money is targeting those who don't fight back and I think the IRS will stay with that route.
so it doesn't add to the gigantic deficit that ballooned under Trump when you ahd no problem with him spending like a drunken sailor. Got it
The first byline in that article is the exact same person that wrote the article you used as your evidence...from the exact same source (ProPublica). You believed them when you thought it helped your point.
Concerns about the EITC driving increased audits among the poor long pre-dates Obama. And FWIW, the main issue seems to involve divorced (or never married) couples claiming their kids' portion of the credit on both returns. I.R.S. MORE LIKELY TO AUDIT THE POOR AND NOT THE RICH (Published 2000) The intensified focus on low-income taxpayers resulted from pressure on the I.R.S. beginning in 1995. Newt Gingrich, who was then House speaker, and other Republican Congressional leaders were concerned about misuse of the earned income tax credit, a program that allows the working poor, especially those with children, to receive money from the government through a form of negative income tax. They proposed to sharply reduce the credit, prompting President Clinton to counter with a plan to bolster audits to reduce fraud and mistakes. *** Mr. Rossotti said that the only reason audit rates for the working poor had risen while the rates for wealthier taxpayers had declined was a mandate from the White House and Congress for close monitoring of the earned income credit. A couple without children can use the credit to eliminate all income tax liability and get back an additional $347, but working parents can wipe out their liability and collect as much as $3,816 more. Representative Bill Archer, the Texas Republican who heads the House Ways and Means Committee, said studies had showed that more than 20 percent of returns claiming the credit had misused it. But John Karl Scholz, a University of Wisconsin economist who studied the earned income credit in 1995 when he was a Clinton administration tax policy adviser, said that while fraud was a continuing problem, most of the issues uncovered in audits tended to be disputes over who got the credit when a couple with children had separated or divorced. Mr. Rossotti expressed the same view in an interview.
Here is Obama's former head IRS Commish: I guess throwing money at something won't cause inflation...
While I was pretty critical of the initial versions of the bill due to size, excess stimulus and financial shenanigans. From what I’ve read the structure and focus of the bill is good and I support most of what I’ve read.
