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Dear Friends,

For many years now, the attempts by the progressive movement to fundamentally change the United States and implement a far left agenda have been stymied. That all changed last week when President Biden signed into law the Inflation Reduction Act. Not only will this bill raise taxes on the middle class and subsidize green energy programs, but many analysts agree it will not lower inflation. Perhaps the provision that should be most concerning regards the Internal Revenue Service.

With nearly $80 billion in additional funding, which includes $45 billion for “enforcement” plus the addition of 87,000 new agents you can bet that means more audits, particularly on small business. Mike Levin and the Democrats claim that this new funding will allow the IRS to go after the “rich tax dodgers.” Don’t buy what they are selling you. There is no epidemic of tax delinquency. As a matter of fact, the U.S. has one of the highest tax compliance rates in the world at 88%. Certainly higher than Western Europe. While the IRS does need some funding increase to improve its tax return and customer service areas, as well as upgrade its technology, only a minuscule amount of this new funding will go towards that.

The Joint Committee on Taxation estimates that 90% of money raised through new audits will come from those making less than $200,000. Not only can these audits bring repeated visits from IRS agents over a long period but they also demand a trove of documents. Most people, particularly small businesses, cannot afford the accountants and lawyers needed to help walk them through this bureaucratic process. This is exactly what Mike Levin and the Democrats want. They want you to buckle under the pressure of an ever increasingly powerful government machine.

Oh, and let’s not forget that 87,000 new IRS agents means a big boost in membership for the National Treasury Employees Union. Currently, there are 70,000 members of the union who are employed by the IRS. You can bet some of the new agents will be joining their ranks. I’m sure Mike Levin is going to be thrilled he just acquired some new donors!

We must put a stop to this nonsense.

Brian

Sources

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