In early May 2021, President Biden proposed an $80 billion increase in the Internal Revenue Service (IRS) budget over the next ten years. This proposal was then increased to $87 billion. The aim of this proposal is to increase funding for the IRS so that it can more effectively and efficiently collect taxes owed to the government. The proposal has been met with mixed reactions, but many experts believe that the increase in funding for the IRS is a good thing for taxpayers.
The increase in funding for the IRS will allow it to hire more staff, including auditors and tax collectors. This means that the IRS will be better equipped to go after individuals and corporations who are not paying their fair share of taxes. This is particularly important because the IRS has seen a decline in the number of auditors and tax collectors in recent years. This has resulted in a decrease in the number of audits conducted and an increase in the tax gap, which is the difference between the amount of taxes owed and the amount actually collected.
The tax gap is estimated to be as much as $1 trillion annually. This is a significant amount of money that the government is missing out on, and the increase in funding for the IRS will help to close this gap. By closing the tax gap, the government will be able to fund important programs and services that benefit taxpayers, such as infrastructure projects, education, and healthcare.
Another reason why the increase in funding for the IRS is a good thing for taxpayers is that it will help to level the playing field. Currently, the tax system is skewed in favor of the wealthy and corporations. They have the resources to hire teams of lawyers and accountants to help them avoid paying taxes. This leaves middle-class taxpayers and small businesses at a disadvantage. With more resources, the IRS will be able to go after those who are not paying their fair share of taxes, regardless of their wealth or power.
The increase in funding for the IRS will also help to reduce the burden on honest taxpayers. When individuals and corporations do not pay their fair share of taxes, it puts a greater burden on those who do. This is because the government has to make up the difference by cutting programs or raising taxes on everyone else. By closing the tax gap, the IRS will ensure that everyone is paying their fair share, reducing the burden on honest taxpayers.
Finally, the increase in funding for the IRS will help to restore faith in the tax system. When people see that others are not paying their fair share of taxes, it erodes trust in the system. This can lead to a decrease in voluntary compliance, as people feel that their tax dollars are not being used effectively. By closing the tax gap and ensuring that everyone is paying their fair share, the IRS will help to restore trust in the system.
In conclusion, the increase in funding for the IRS is a good thing for taxpayers. It will allow the IRS to hire more staff, close the tax gap, level the playing field, reduce the burden on honest taxpayers, and restore faith in the tax system. While some may be hesitant to support an increase in funding for the IRS, the benefits of doing so far outweigh any potential drawbacks.
Comments