Harrison Bergeron said:
Waco1947 said:
The GOP's first policy bill would defund President Joe Biden's efforts to help the Internal Revenue Service crack down on tax cheats. It's a bill that's predicated on disinformation, whose only real constituency is wealthy people who don't want to pay their fair share. And it underscores how the Republican Party's so-called populism isn't about empowering the working class it's about exploiting them
What group of taxpayers are the most targeted for audits?
The bottom 20% of earners get audited about 5x more than the upper 20%.
But that's not all because of targeting or enforcement (or a lack thereof). A lot of that is because the upper 20% are spending a crap ton on CPAs and can avoid the audits with a lot of fancy accounting work. The bottom 20% don't know how to properly fill out a Schedule C, creating flags all over their file.
To me, the conversation is simple:
1. There is a tax gap (what should be collected vs what is) and the IRS does need additional labor + tech to address this.
2. The IRS does need money to upgrade systems so they can be more efficient (which should lessen the demand on physical labor)
3. It doesn't take $90B to accomplish those things. It shouldn't take half that much, even.
4. We need a simpler tax system. The complexity of our tax code should be embarrassing. CPAs- who do this full time- spend as much time (or more) researching and understanding the tax code they deal with daily vs actually preparing returns.
I'm not opposed to a flat tax based on sales but there would have to be a lot of work done. You'd have to eliminate a large basket of goods so those with much less disposable income weren't hurt more by it and you'd have to still have a lot of tax rules to grab the taxes of the wealthy that are making substantial income but not necessarily spending them on goods.