Spending

Matt Welch on Democratic Taxes and Spending

The climate, health care and tax bill known as the Curbing Inflation Act, recently passed in the Senate, allocates $80 billion to expand the Internal Revenue Service (IRS) in the goal of generating hundreds of billions of dollars in additional tax revenue.

Just over half of the $80 billion is for increased tax enforcement, and some estimates suggest it will be used to hire nearly 87,000 IRS officers over the next decade, though all these hires will not represent additional new positions.

Democrats say the goal is to generate $200 billion in additional revenue through more aggressive tax enforcement, which they say will be focused on the wealthy. Additionally, they say the new enforcement measures won’t affect taxpayers who earn less than $400,000 a year, even though Democrats explicitly rejected an amendment that would have enshrined the policy in law.

So is this really just a plan to spend more money to catch rich tax cheats? Or will the agency’s new enforcement budget and increased staffing inevitably lead to more audits of low- and middle-income taxpayers?

That’s the subject of this week’s episode of Summary of Reason with Peter Sudermanwith Raison Managing Editor at Large Matt Welch.

Mentioned in this podcast:

“The IRS Controversially Says Hiring 87,000 New Officers Won’t Mean a Higher Audit Rate for the Middle Class”, by Liz Wolfe

“Democrats Want To Soak The Rich By Spying On The Poor”, by Matt Welch

“Biden’s Total Financial Surveillance”, by Matt Welch

“Biden Won’t Close the ‘Fiscal Gap’, But He Will Spy on Your Bank Statements”, by Matt Welch

Audio production and editing by Ian Keyser; produced by Hunt Beaty