Representative Peter DeFazio (D-OR) wants to double spending on the IRS, which he believes would help collections and service soar.
His new legislation would give the IRS an extra $11.8 billion annually for the next decade on top of existing funding, which amounts to $11.5 billion in the current fiscal year.
The Trump administration has requested $12 billion for the coming year. In return for ratcheting up IRS spending and staffing, DeFazio would mandate much higher audit rates on wealthy taxpayers and high-profit corporations than they presently face. The bill would require audits on half the individuals who earn $100 million or more and on 90 percent of corporations with gross income that exceeds $20 billion, and set additional audit requirements on lower individual and business income thresholds that would also eclipse current levels. The goal is to cut into the amount of taxes that are unpaid but nonetheless legally owed, known as the tax gap, which is officially estimated at $381 billion per year and predicted to grow.
Policy and Taxation Group is your voice in Washington on economic freedom. We advocate for policies that allow American families to fully enjoy the economic liberties and benefits of a robust free market unique to our nation. For over 25 years, we have been the loudest voice in the nation’s capital on eliminating the death tax. This ill-conceived tax has a destructive impact on families, family businesses, job creation, and the national economy.