This is gonna be a reverse of Republicans efforts to starve the tax collecting agency of its ability to collect taxes after it went after Conservative non-profits back a decade or so before….
Biden will get little support on this from Republicans in Congress….
Remember…
In the end?
Congress writes the tax code….
Not the President….
President Joe Biden will seek $80 billion to fund enhanced Internal Revenue Service enforcement of high-earners to help pay for his American Families Plan, which he is set to unveil later this week, two sources briefed on the proposal told CNN.
The administration believes the enhanced measures to crack down on tax evasion will increase revenue for the government by $700 billion, although some outside experts are skeptical and the Congressional Budget Office — the accepted scorekeeper — is unlikely to project that much revenue.
As CNN has reported, this is a component of how Biden plans to finance his proposal, with the tax increases on the individual side for the wealthy making up a more significant and tangible chunk.
Previous administrations have touted beefing up IRS enforcement to raise money, and while there are definitely large sums that can be pulled in, it remains to be seen whether it will be as much as Biden’s team thinks….
…
In addition to the enhanced IRS enforcement, the financing of the plan includes raising the top marginal rate to 39.6% from 37% — back to the top rate prior to the 2017 tax cuts — and raising the capital gains rate for people making more than $1 million to 39.6%, from 20%. The 3.8% Affordable Care Act surtax would still apply, which would push the number north of 43%.
The plan will be the second part of a proposal to help the nation’s economy recover from the coronavirus pandemic. Biden unveiled the first part, his infrastructure and jobs proposal, last month.
The American Jobs Plan would heavily invest in rebuilding the nation’s crumbling infrastructure and shift to greener energy over the next eight years. The President says he plans to pay for his proposal by raising corporate taxes and eliminating tax breaks for fossil fuels, which was one of his core campaign promises.
Biden would raise the corporate income tax rate to 28%, up from 21%. The rate had been as high as 35% before former President Donald Trump and congressional Republicans cut taxes in 2017. The White House says this corporate tax hike would raise more than $2 trillion over the next 15 years….
Note…
One wonders how taxing the rich will play come political donation time for Democrats from the rich?
It should help them with small, not so rich, tax paying donors, though…
I don’t give a damn how much the poor multi millionaires and billionaires pay in taxes.
However I’m surprised the well known” blue collar” Republican Party would oppose something like this.
Surprised, eh?
A friend of mine works for the IRS and there was an article published a few months a go indicating that there is over a trillion dollars of unpaid taxes out there that the IRS has let go uncollected during the Trump years. Congress doesn’t have to write any tax codes to get the IRS to go out and collect the money owed…even if they get a quarter or a half, that will be a tremendous amount of money added to the treasury (of course the IRS will keep a lot of that money in hours, support, salary, hires, etc)…
No doubt on the uncollected….
Again….
Republicans and Trump hated the tax collecting agency….
Let’s see if Biden can get Congress to give him the money ….
Remember….
Congress NOT the President decides on were the money goes mostly…
Reality on the IRS getting Billions from the rich…
Increased IRS Enforcement Will Take Years for Results
Bloomberg: “The Biden administration has proposed a more than 10% funding increase for the Internal Revenue Service for the next fiscal year and an overall investment of $80 billion over the next 10 years to beef up the agency’s depleted auditing staff and outdated technology.”
“But some former IRS officials said it will take several years to produce significant results, especially after accounting for the time it takes to hire and train new employees and to complete audits of highly complex returns.”
“Moreover, such audits are prone to appeals and litigation that could tie up any payments for additional years, and past efforts to recoup unpaid taxes have returned a tiny fraction of what Biden envisions.”
Going after the unpaid taxes of the very wealthy also creates the added advantage of incentivizing people to be more honest on their taxes.
If people know about the law, they will be less likely to make fraudulent tax deduction claims – such as their hobby is actually a business.
Good point.
James,as we all know ,has for years basically taken the position that you just don’t mess with rich people.A very Republican like position I might add.