Robert A. Levine 5-14-12
With federal budget deficits and the national debt as major problems for the country going
forward, why have Republicans been unwilling to fund more I.R.S. agents to pursue tax cheats and increase federal revenue? The 2012 Obama budget asked for an increase in funding for the agency, much of which would have been dedicated to hiring more agents and enforcement initiatives. However, Congress in its infinite wisdom instead cut the I.R.S. budget, forcing the agency to offer buyouts to over 5000 of its employees.
A report by the internal monitor of the I.R.S. in January noted that the cuts in funding and an increased workload made the agency unable to adequately collect taxes or provide reasonable service to the public. In fact, staff reductions resulted in an inability to obtain billions of dollars annually owed to the government, but not paid. One estimate from I.R.S. data had tax cheating costing the federal government $3 trillion over the last decade. In addition, every tax filer has to pay an extra $2200 to the government to compensate for those taxes that are evaded. The great bulk of the tax avoidance is by wealthy individuals or small businesses. If with more agents I.R.S. audits rose significantly, much of the money now owed could flow into federal coffers, a good deal of it voluntarily through tax dodgers’ fears of being caught.
The recent GOP House budget proposal emphasized cutting tax rates, while closing loopholes and
deductions, but did not provide the I.R.S. with additional help to improve enforcement of the current tax laws. And in a cynical maneuver, the loopholes and deductions to be ended were not specified in the GOP bill, so that no estimate could be made of whether the revenue generated would be equivalent to what was lost with the tax cuts. Last year when the additional money was requested for the I.R.S., one Republican Congressman declared that no money would be forthcoming for “I.R.S. goons.” This is emblematic of the way many Republicans view the I.R.S; an agency whose powers should be reduced rather than expanded. And when service from the I.R.S. is not up to par, citizens’ hostility to the agency grows, which is probably what Republicans want.
One would think that in this time when shrinking the federal budget deficit is so important to both parties and the electorate, the idea of collecting more money from tax cheats would be a no-brainer for the deficit hawks in the GOP. Not only would it bring in additional revenue to reduce the deficit, but it’s also an issue of fairness for those who pay their share. And getting it done would be relatively painless. Do Republicans hate the I.R.S. so much that they are willing to let fraud go unpunished and tax-evaders keep their ill-gotten gains?
Republicans appear to be hostile to anything that has to do with taxes. While there’s little question that the tax code needs changing, the tax laws now in place need to be maximally enforced for the good of the nation. This should be done independently of cutting taxes, or reform of the tax code.
Resurrecting Democracy
www.robertlevinebooks.com
With federal budget deficits and the national debt as major problems for the country going
A report by the internal monitor of the I.R.S. in January noted that the cuts in funding and an increased workload made the agency unable to adequately collect taxes or provide reasonable service to the public. In fact, staff reductions resulted in an inability to obtain billions of dollars annually owed to the government, but not paid. One estimate from I.R.S. data had tax cheating costing the federal government $3 trillion over the last decade. In addition, every tax filer has to pay an extra $2200 to the government to compensate for those taxes that are evaded. The great bulk of the tax avoidance is by wealthy individuals or small businesses. If with more agents I.R.S. audits rose significantly, much of the money now owed could flow into federal coffers, a good deal of it voluntarily through tax dodgers’ fears of being caught.
The recent GOP House budget proposal emphasized cutting tax rates, while closing loopholes and
One would think that in this time when shrinking the federal budget deficit is so important to both parties and the electorate, the idea of collecting more money from tax cheats would be a no-brainer for the deficit hawks in the GOP. Not only would it bring in additional revenue to reduce the deficit, but it’s also an issue of fairness for those who pay their share. And getting it done would be relatively painless. Do Republicans hate the I.R.S. so much that they are willing to let fraud go unpunished and tax-evaders keep their ill-gotten gains?
Republicans appear to be hostile to anything that has to do with taxes. While there’s little question that the tax code needs changing, the tax laws now in place need to be maximally enforced for the good of the nation. This should be done independently of cutting taxes, or reform of the tax code.
Resurrecting Democracy
www.robertlevinebooks.com
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