In an effort to pay for a number of new trillion-dollar spending proposals, US President Joe Biden is set to request $80 billion in additional funding for the Internal Revenue Agency, in an effort to curb tax evasion by wealthy corporations and high earners.
On Tuesday, The New York Times reported that the Biden administration is expected to increase the IRS budget by $80 billion and grant more authority over the next decade to crack down on tax evasion, citing individuals familiar with the matter. The earmarked funding would amount to an increase of two-thirds of the agency’s budget for the past ten years.
The latest proposal would also consist of new disclosure requirements for small businesses not classified as corporations, as well as high-income individuals who may be masking their earnings from the IRS. In addition, those using pass-through corporations, or those keeping their wealth in ‘opaque structures’ would also be targeted by new reporting requirements.
The Biden administration’s latest efforts — combined with previously-announced corporate and capital gains taxes — will serve as a new way to level the tax playing field between America’s middle class workers and the country’s wealthiest, many of whom go to sophisticated lengths to reduce or avoid taxation.
It is projected that by increasing the IRS budget, some $700 billion in tax revenues would be recovered over the next decade, which will be directed towards Biden’s next stimulus plan — dubbed the “American Families Plan,” which comes with a price tag of $1.5 trillion. It follows the administration’s $2.3 trillion infrastructure package, which follows the some-$5.3 trillion already passed as pandemic relief.
The Biden administration’s latest efforts would also give the IRS a robust stream of funding, giving the agency additional resources for enforcement practices without fears of budget cuts.
Information for this briefing was found via The NYT. Thee author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.