Biden proposes doubling IRS workforce as part of plan to snag tax cheats

[DonViejo]

Source: Politico



By BRIAN FALER

05/20/2021 12:20 PM EDT

Updated: 05/20/2021 01:35 PM EDT

President Joe Biden is proposing to double the size of the IRS, by hiring nearly 87,000 new workers over the next decade, as part of a sweeping plan to chase down tax cheats.

The hiring spree, part of a bid to increase IRS funding by $80 billion, would be phased in to give the department time to absorb the additional resources, the Treasury Department said in a report Thursday.

The agency’s workforce would never grow by more than a “manageable” 15 percent each year. And its total budget would increase by about 10 percent annually.

At the same time, the administration wants to require financial institutions and other businesses to report a lot more information about the money coursing through their customers’ accounts — a proposal designed to put the fear of the IRS in the hearts of tax scofflaws.





Read more: https://www.politico.com/news/2021/05/20/irs-funding-boost-489830

[soothsayer]

1. Kind of rather go to a flat tax or something

[yellowdogintexas]

3. if not done carefully, flat tax can cause great financial burden on

folks who can least afford it.

[soothsayer]

7. Had no idea! Hopefully no one will listen to me.

[DENVERPOPS]

10. A flat tax can be incredibly regressive

The rich would love it, they would be able to keep tons more........as well as being able to get rid of their tax attorneys and tax accountants which they loathe having to pay to do their accounting and returns......

[DanieRains]

21. Tax Wealth Not Wages Flat Tax Fine

If yer broke you pay no income tax

[EYESORE 9001]

5. HELL NO!

Do you really hate the poor that badly? Flat tax. Sheesh!

[soothsayer]

6. Oh. Didn't realize. Flat tax above a certain amount?

[Maggiemayhem]

12. That has been a right wing talking point for years.

[c_junk]

24. Decades!

Just found that that Right Wing (capitalist branch) legacy Steve Forbes has been pushing a flat tax since at least the Republican take-over of the House in the nineties...

Here's an article from then.

If they're pushing it, it's not good for the 99+%, but fabulous for them.

[oldsoftie]

34. Yes, it COULD work; no deductions & only tax above a certain amt

But I prefer a sales tax. Too much money goes untaxed & always WILL

And while we're at it, do away with the SS cap

[TexasBushwhacker]

22. Sure! But tax ALL income

That means all income would be subject to Social Security and Medicare taxes.

That means long term capital gains will be taxed as regular income AND subject to Social Security and Medicare taxes.

Th thing is, tax rates are only part of the problem. It's the deductions. Also, international corporations are able to deduct the taxes they pay in other countries from their US tax, even to the point of getting REFUNDS. I say no free lunch. If you do business in the US, there should be an Alternative Minimum Tax just like there is for personal income tax.

[Tree Lady]

37. On the other hand make social security

Not taxable unless you make over $75,000. We don't make that much but over limit so pay tax on 85% of it.

[TexasBushwhacker]

38. Yeah, they definitely need a COLA

It's exactly the same as when the law was passed during the Reagan administration. Singles have to pay tax on SS if they make over $25K. Couples have to if they make over $35K or so.

[Major Nikon]

23. A specious idea promoted by the right wing

Those at the bottom would see a dramatic tax increase while those at the top would see a dramatic tax decrease. Meanwhile inevitably those at the top would still find new ways to influence congress into granting them exceptions to lower their effective tax rate even more.

[soothsayer]

25. That's horrible.

[MichMan]

43. Don't the wealthy pay a much smaller % of their income than lower incomes due to all the loopholes?

A flat tax would take care of that

[Major Nikon]

46. You'd have to be high to think they won't still get loopholes

[MichMan]

48. Not if there were zero deductions allowed

[yellowdogintexas]

2. It's about time. The IRS has been understaffed and overworked for years

They do not have time to analyze those large complex tax files from rich people and corporations; of course it means they are not really auditing heavily at all.

[LiberalArkie]

13. I had an old friend a long time ago that was an auditor for the IRS. Even was on the audit team for

Nixon. After all the layoffs and stuff he said that the IRS could not afford to go after the wealthy as the legal expenses would be too great. He told me that is why they went after the poor and middle class.

[onetexan]

16. then i agree w Biden - staff up & go after the tax cheating wealthy

[Historic NY]

4. Great I'm still waiting for them to re-audit an old return

They disputed two tax preparers who were unable to find a mistake. I think they were too busy auditing Trump.

[Mickju]

8. You mean like Donald Trump?

[C_U_L8R]

9. Just make Trump pay

and you can fund the whole workforce

[soothsayer]

26. Does he actually have any money?

[C_U_L8R]

30. Good point.

I bet there's some stashed near fave Russian oligarch money laundering holes. Perhaps Wilbur Ross's Bank of Cyprus.

[MarcA]

11. Go after the highest accounts First and Foremost

No more going after people who have to live off of tips. Of course, if the IRS gets built up and the rethugs ever gain control again that is exactly what they would do.

[dobleremolque]

17. Nice idea but

the problem is lowest hanging fruit & path of least resistance. A bulked up IRS will go after the people least able to afford tax lawyers to dispute a collection effort.

It's easier to go after 10-million ordinary people for $1,000 each than to go after 1,000 billionaires for $10-million each. Same outcome, less effort. Going after the little guy is a MUCH surer bet.

[soothsayer]

31. This is my fear... but I think Biden will urge them to do otherwise

[SheltieLover]

14. Excellent! 👏👏👏👏

Ty, Joe!

[Pepsidog]

15. If they do go after the right people, not the easy targets.

[soothsayer]

27. That's my hope (and fear). I do know Joe is aware that the little guy is getting slammed

So hopefully this bodes well for going after the big guys.

[bucolic_frolic]

18. Simplify

A dividend is a dividend. Not a qualified dividend.

A trader is a trader. It's income for people now. No special tax treatment.

An IRA is an IRA. It was supposed to be simple. It costs more for accountants than a working stiff can put aside.

A taxable gain is a taxable gain. 365 days doesn't matter. Only rich people hold past the 365 exclusion.

It's a tax code to pay for the government. It's not designed to serve corporations. Corporations make off with all the money, then tax code adjustments are made to lessen the pain for workers. When did this start?

Banking information? Cash is almost not used anymore so go after bitcorn. And stop the accounting tricks. A deposit is a deposit. No more cashing checks off the books which is what rich people do.

[soothsayer]

29. Yes, this kind of thing. Simplification!

It came out as flat tax and I was righteously pummeled, but I think simplification is what I had in mind.

[bucolic_frolic]

32. Still awaiting simplification from the Paperwork Reduction Act of 1977.

And let me emphasize. A guy told me that a rich guy told him, 60 years ago, that you hide income by cashing checks against your account rather than depositing it, because it doesn't show up on your account ledger. I don't know if this is true, but it sounds right. And probably all the better if you're tight with the teller. Is this how banks operate? Maybe some who understand it better can weigh in.

[soothsayer]

33. Ah, I wanted to ask how on earth you cash checks off the books

They’re cunning, these folks

[Joinfortmill]

19. Sounds like a plan.

[ailsagirl]

20. A great plan!!! I'm all for it!!

Last edited Fri Jun 11, 2021, 01:12 AM - Edit history (2)

[airmid]

28. That's fine but I hope they will be going after the fat cats who are the biggest

cheats.

https://finance.yahoo.com/news/column-biggest-tax-cheats-1-193339793.html

[oldsoftie]

35. There's SO MUCH income that the IRS knows nothing about

Good luck with more people to find what isnt reported.

If its not 1099 or W2 income, its very hard to find it

We need a sales tax similar to what most other countries use. Trillions go untaxed and much of it is from high earners

People just dont understand how the "income world" really works. I guess if you've always worked for a paycheck you just dont see it

[tonekat]

47. $90M Dollars

That's what I read the underground economy in the US rakes in, and that was several years ago. Might have been $90B!

I'd like to see the IRS go after churches that enjoy a tax exemption but blatantly push a right wing message from the pulpit.

[oldsoftie]

49. That number is LAUGHABLE.

Whenever someone mentions the "underground economy" criminal money comes to mind. And maybe that number is only referring to criminal income. But the BIG money is simply unreported income. There's NO WAY to accurately estimate that number. Here's a short list of professions who likely never report ALL their income. They're certainly not "underground" workers. I've dealt with almost all of them & have first hand knowledge on how its done.

Painters, mechanics, AC repair, construction, lawyers, accountants, doctors, therapists, all forms of real estate, tree service, masons, roofers, ATM owners, convenience store owners, fast food, shop owners, plumbers, electricians

[PoliticAverse]

36. I'm extremely curious as to how this plan will poll with the general public. n/t

[ffr]

39. This could have real ramifications for election reform.

To ask, what your your sources of income and what expense items do you deduct.

[Yo_Mama_Been_Loggin]

40. Good

Understaffing the IRS has been SOP from the GQP playbook.

[ffr]

41. Crypto currencies are also targeted, in case anyone was wondering.

That'll help scale back the murderers for hire on the Dark Web and all the trash T----ster money laundering, unless they can keep it below $10,000.

Financial institutions would have to report the gross inflows and outflows on all business and personal accounts. So-called payment settlement entities, like PayPal, foreign financial institutions and cryptocurrency exchanges would also be subject to additional reporting requirements. Businesses would have to alert the IRS to cryptocurrency transactions worth more than $10,000.

[tclambert]

42. Do any of these tax cheats look like a walrus spray painted orange?

[honest.abe]

44. Super!! As long as they dont come after me..

Not that I cheat but I might make a mistake here and there.

[SwannieK]

45. Go after the orange menace first...after all, he says the IRS has been auditing him for years!

They need to go after El Corrupto first...at least half the national debt could be repaid if they collected all the taxes he failed to report and pay in the past 40 years.