During the previous week, Democrats repeatedly asserted that their proposal to strengthen the Internal Revenue Service would only hurt wealthy earners.
It took the Congressional Budget Office just a few days to debunk that myth, which shows how quickly they work.
The budget scorer’s fast analysis backs up the assertion that the middle class will be caught up in the expanded auditing efforts.
In a letter dated August 12 and addressed to Senator Mike Crapo, who had been attempting to bind Democrats to their vow to limit audits to high incomes, the CBO made this point clear.
If the idea to expand the Internal Revenue Service “is not about those who make less than $400,000,” as the press secretary for the White House, Karine Jean-Pierre, stated, then why not make it obvious in the bill?
Mr Crapo suggested an amendment to assure that taxpayers earning less than $400,000 would be excluded from any further audits, but Democrats voted against it by a margin of 51 to 50.
After that, Mr Crapo contacted the CBO and requested that they determine the impact that his amendment would have had.
According to the findings of the agency, increased scrutiny on filers earning less than $400,000 would account for $20 billion over 10 years.
This is out of a total of approximately $204 billion that Democrats hope to collect through a larger, more powerful IRS.
In other words, the expansion of the IRS’s auditing of middle-class taxpayers as it is currently conceived may bring in billions of dollars in additional income.
The Congressional Budget Office (CBO) made this point abundantly clear in a letter that was dated August 12 and addressed to Senator Mike Crapo. Senator Crapo had been attempting to bind Democrats to their pledge to restrict audits to individuals with high incomes.
Why not make it very clear in the legislation that the proposal to expand the Internal Revenue Service “is not about those who make less than $400,000,” as the press secretary for the White House, Karine Jean-Pierre, stated?
An amendment was proposed by Mr Crapo to ensure that taxpayers earning less than $400,000 would be excluded from any further audits. However, Democrats voted against it by a margin of 51 to 50, so it was ultimately rejected.
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The problem is that the Internal Revenue Service (IRS) uncovers one person who cheated on their taxes, and then numerous more law-abiding taxpayers are targeted for unnecessary scrutiny as a result.
Many of the hundreds of thousands of people who are audited each year are chosen at random, and the vast majority of taxpayers do not have the financial means to hire an attorney to represent them in Tax Court to dispute claims made by the Internal Revenue Service (IRS) regarding their tax liability.
Whether or not they believe the IRS’s pursuit is justified, they go ahead and write the cheque to put an end to it.
