In the letter that he sent to Congress, Rettig said that the $80 billion that will be granted to the IRS as part of the upcoming $740 billion Inflation Reduction Act is money that has been waiting a very long time to receive.
He stated that the resources will be directed to “big corporate and worldwide high-net-worth taxpayers” while also serving as an aid to average filers.
In his writing, he stated that “these resources are in no way about increasing audit scrutiny on small firms or middle-income Americans.”
“Other resources will be invested in workers and information technology systems, which will allow us to provide a better service to all taxpayers, especially taxpayers with small enterprises and taxpayers with middle incomes.
Enhanced information technology systems and taxpayer service will actually imply that honest taxpayers will be better able to comply with the tax laws, resulting in a lesser likelihood of being audited and a reduced burden on them.
According to data provided by the agency for the fiscal year 2021, the Internal Revenue Service (IRS) had over 79,000 full-time workers and reported having operating costs of $13.7 billion.
Rettig continued by saying, “As an enormously proud American, I’m appreciative of your support of the Internal Revenue Service and its committed staff.”
“I cannot emphasize the importance of the transformative nature of these resources enough for the organization or for the American taxpayers,” she said.
The new proposal has been criticized by several Republican politicians, who say it is an insult to the people who pay taxes in the United States.
During a news conference, Senator Lindsey Graham (R-South Carolina) remarked that he “couldn’t believe it when I read it,” referring to the fact that some of the college football stadiums in his state would not be able to accommodate the 87,000 new employees.
“They’re talking about doubling the size of the Internal Revenue Service… When you go to the football games this autumn, just pretend that everyone on your left and right is an agent of the Internal Revenue Service.
During a speech on the Senate floor, Senator Ted Cruz (R-Texas) claimed that there are a lot of bad things in this plan, but few are worse than the proposal by Democrats in this package to double the size of the Internal Revenue Service and add 87,000 new IRS agents.
Cruz made these statements. “I can assure you that residents of each and every one of our states if you were to ask them, ‘What do they want,’ they would respond that they did not want 87,000 extra IRS agents.
And they are not going to be created to conduct audits of billionaires or large enterprises. They are being developed to perform audits on you.”
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The Congressional Budget Office arrived at this conclusion after analyzing an earlier proposal to recruit 87,000 extra IRS agents.
The CBO found that audit rates “would climb for all taxpayers,” even though those with higher incomes “risk the biggest increase.”
According to members of the Republican caucus on the House Ways and Means Committee, the additional agents would have the capacity to conduct 1.2 million more individual audits each year, with roughly half of those audits affecting citizens of the United States earning less than $75,000.
In a similar vein, Vice President Joe Biden has stated that the Inflation Reduction Act would “have the richest firms pay their fair share without imposing extra taxes on people making under $400,000 a year.”
Despite this, the information presented by the impartial Joint Committee on Taxation last month suggested that the new legislation would result in a rise in taxation for all income brackets, except those with an annual income of between $10,000 and $30,000.
