Bloomberg Opinion Today: Preparing for Life After Trump … there’s nothing to stop Biden from thinking about taxes, and for that Natasha Sarin has an idea: Empower the Internal Revenue Service to collect the tax money that wealthy Americans are supposed to be paying. Because Congress cut the IRS’s budget, it’s had fewer auditors capable of scrutinizing the labyrinthine finances of the ultra-rich. As a result, they get audited less, causing the IRS to miss out on lots of much-needed revenue.
< Chart showing 77% reduction in audit rate of incomes over $10 million >
Republicans have instead pressured the agency to focus on fraud among low-wage recipients of the Earned Income Tax Credit, which is peanuts compared to the more than $1 trillion that could be raised if the IRS were restored, Natasha writes.
Bonus Transition Reading: Biden is turning to younger economists who will bring big policy ideas backed by big data and pragmatism. — Noah Smith
No, take Trump with you…
Bloomberg Opinion Today: Preparing for Life After Trump … there’s nothing to stop Biden from thinking about taxes, and for that Natasha Sarin has an idea: Empower the Internal Revenue Service to collect the tax money that wealthy Americans are supposed to be paying. Because Congress cut the IRS’s budget, it’s had fewer auditors capable of scrutinizing the labyrinthine finances of the ultra-rich. As a result, they get audited less, causing the IRS to miss out on lots of much-needed revenue.
< Chart showing 77% reduction in audit rate of incomes over $10 million >
Republicans have instead pressured the agency to focus on fraud among low-wage recipients of the Earned Income Tax Credit, which is peanuts compared to the more than $1 trillion that could be raised if the IRS were restored, Natasha writes.
Bonus Transition Reading: Biden is turning to younger economists who will bring big policy ideas backed by big data and pragmatism. — Noah Smith