Beefing up IRS enforcement may prove politically easier than raising taxes on the wealthy and corporations
The Treasury Department on Thursday announced a plan to raise an additional $700 billion through new tax compliance measures, a potentially key source of revenue for the Biden administration’s multitrillion-dollar spending proposals.
In a 22-page report, Treasury officials identified a number of policies to increase enforcement aimed at closing the “tax gap” between what taxpayers owe to the federal government and what they actually pay. These include increased reporting requirements, new tools for auditors, massively increasing the Internal Revenue Service’s budget, and new rules on cryptocurrency, among other measures.
Some of the changes — such as billions of dollars in additional spending at the IRS — would require congressional approval, and many Republicans have long tried to shrink the agency. But the White House said the proposed investments would pay off by allowing the agency to collect the taxes that are due. Continue reading.