President Biden plans to increase the budget for the Internal Revenue Service (IRS) by $80 billion and to expand the authority of the IRS, according to government officials. The New York Times reports that in recent years, the IRS budget increase not only failed to keep up with inflation, but also faced a budget crunch, making the situation even worse, and the tax investigation actions for the wealthy often hit a wall.
The New York Times reported that two officials with knowledge of the situation revealed that Biden needs a huge budget base to promote the next phase of economic policy, and one of the ways to raise budget sources is to provide more resources to the IRS, so that the IRS for the evasion of federal income tax companies and individuals to strengthen the recovery of taxes.
Officials pointed out that the IRS to recover tax money will be used to do for the size of 1.5 trillion “American Families Plan” (American Families Plan) funds. Biden 28 speech to a joint session of Congress, will announce the “American Families Plan” details. The “American Families Plan” program includes a national preschool (universal pre-kindergarten), expanded child care assistance, free community college, and paid parental leave for workers.
The “American Family Plan” is mainly funded by a tax increase on wealthy people earning more than a million dollars a year, and raising the capital gains tax on investments bought and sold by wealthy people.
The report pointed out that the government officials pointed out that the federal government will strengthen the tax investigation of enterprises and the rich, in the next 10 years to let at least 700 billion originally may be evaded tax money indeed into the account; Biden intends to increase the budget for the IRS 80 billion, so that the IRS has sufficient resources to carry out tax investigation operations.
For how to make up for the “tax gap” between the tax receivable and the tax collected, previous administrations have discussed. IRS Commissioner Rettig (Charles Rettig) said earlier this month at a Senate hearing that the tax evasion problem has cost the government at least $1 trillion a year, but the IRS lacks the resources to detect tax evasion.
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