Mastodawn

silence7 Jul 11, 2024

I.R.S. Crackdown on Delinquent Millionaires Yields $1 Billion

https://slrpnk.net/post/11323757

I.R.S. Crackdown on Delinquent Millionaires Yields $1 Billion - SLRPNK

cross-posted from: https://sopuli.xyz/post/14698725 [https://sopuli.xyz/post/14698725]

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Twinkletoes Jul 11, 2024

Wait so we spent $80 billion dollars to recoup $1 billion dollars?! 😵‍💫

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AlternatePersonMan Jul 11, 2024

So far $5.7 billion has been spent. The total approved funds were actually $60 billion. That ratio does seem sketchy, but the article mentions the money will be spent on other upgrades as well, such as customer service, though it fails to go into much detail.

I recall reading that increasing IRS funds tend to yield significantly higher earnings, but the article doesn’t provide any depth there. The proposal mentions that they expect to bring in $200 billion. That sounds disappointingly low to me. I was hoping for something more like a 10-1 return, but I imagine auditing those armed to dodge taxes isn’t easy.

The Effects of Increased Funding for the IRS

CBO estimates that portions of the Administration’s proposal to increase funding for the IRS by $80 billion over the 2022–2031 period would increase revenues by approximately $200 billion over those 10 years.

Congressional Budget Office

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barkingspiders

It can take time too. One of the ways rich people skirt taxes is paying lawyers to drag things out in court. IRS doesn’t just have to hire new people to do complicated audits on rich people, they also have to pay lawyers to enforce their findings in the courts. Ramping up new agents to handle the audits and going through any court procedures can take years.