AMAC Signs Coalition Letter Opposing New IRS Funding – AMAC
Additional funding from the IRS would lead to targeting middle-class taxpayers and small businesses, and would be a down payment on Democrats’ broader plan to expand the agency and give it more power.
March 7, 2022
We write against any increase in IRS funding in any government funding legislation. Democrats have called for increasing the IRS budget, arguing that the agency’s inability to do its job is due to long-term underfunding. However, the real reason the IRS struggles to fulfill its core responsibilities is a long history of incompetence, incompetence, and corruption.
New funding would be a down payment on the left’s goal of giving the IRS $80 billion in new funds to hire 87,000 new officers who will audit and harass American taxpayers. Sen. Chris Van Hollen (D-Md.), head of the Senate Subcommittee on Financial Services and General Government Appropriations noted his panel was considering including $13.6 billion in funding to the IRS, an increase of 14%. 15 Democratic senators led by Elizabeth Warren (D-Mass.) and Jeff Merkley (D-Ore.) wrote a letter calling for increasing IRS funding by at least 14% this year and passing the $80 billion in new IRS funding into the left’s Build Back Better (BBB) Act.
It would be a mistake. The IRS has proven that it wants to target middle class taxpayers and has also proven that it cannot do its current job.
The left wants to increase IRS funding to target middle-class Americans and small businesses for more audits. The new IRS enforcement will fall on American families and small businesses, not the “rich.” The wealthy and big corporations already have armies of lawyers and accountants making sure they legally take advantage of the plethora of credits and deductions offered by the tax code.
The IRS plans to to augment 50% small business audits and IRS funding included in the BBB would result in another 1.2 million per year IRS Audits, about half of which would affect households earning less than $75,000. Funding for the IRS “application” in BBB was 23 times bigger than the amount allocated to “taxpayer services”.
Democrats also want the IRS to spy on virtually every American. Specifically, Democrats included in their Build Back Better Act a “comprehensive financial account information reporting regime” to track withdrawals and deposits from bank accounts, investment accounts, and Venmo, PayPal, and CashApp accounts. American individuals and businesses. This proposal would clearly hurt Americans earning less than $400,000 a year, despite reassurances from the left. It would affect 87 to 134 million Americans earning less than $400,000 a year, according to a To analyse by the joint tax committee (JCT).
The left even wants the IRS to create and administer a new government tax filing and preparation system. The policy, which has long been a pet project of progressives, would replace the existing system of voluntary compliance, where Americans are responsible for filing their own tax returns, with one where the government assesses and files taxes for Americans.
At best, it would force the IRS to collect more personal data to properly assess taxes. A recent report by the Progressive Policy Institute Noted that the IRS does not currently have the information it needs to prepare US family tax returns, especially the refundable tax credits claimed by millions of low-income taxpayers.
At worst, it would give the IRS more power to interfere in the lives of Americans and create a strong conflict of interest. Americans barely understand the tax code as it is. Sixty-five percent think the tax code is too complicatedagainst 7% who think it’s too simple.
The IRS is already wasting an immense amount of Taxpayer Funded Union Time (TFUT). In fiscal year 2019, 1,421 Treasury employees consumed 353,820 hours of TFUT. Claims costs for this period were $17.27 million. Additionally, individuals on TFUT can freely use government property, a cost of $2.5 million. The IRS syndicate also shovels 97 percent of their money into the Democratic campaign coffers. During the 2019-20 campaign cycle, the National Union of Treasury Employees (NTEU) Political Action Committee raised $838,288. Of $609,000 spent on federal candidates, an overwhelming 97.04% went to Democrats.
The IRS has also proven that it cannot protect taxpayer data. Last year, thousands of US taxpayer records were stolen and several tax documents were released by the progressive news outlet ProPublica to advance their own political agenda. More than six months later, the IRS has not provided no substantial response to this scandal.
While concerning, this is not the only instance where the IRS has failed to protect taxpayer data. For example, a 2016 TIGTA report found that the IRS had lost track of 1,000 laptops containing sensitive taxpayer data that contract employees were using. Similarly, in 2015, hackers stole the personal data of 330,000 taxpayers. Reports indicated that the hackers did not use any suspicious tactics, but instead managed to steal data by browsing the website and posing as ordinary people filing their taxes.
We urge you to reject any effort to increase the IRS budget in any government funding legislation. Any new IRS funding will be just a down payment on the left’s goal to give the IRS $80 billion and hire 87,000 agents to audit and harass middle-class families and small businesses.
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