As senate Democrats say they now have the votes to pass the Inflation Reduction Act, one component will include a great funding boost for the IRS.
IRS Commissioner Charles Retting stated that if they receive the $80 billion funds it would get the agency back on track. This includes closely monitoring big corporate and global high net worth taxpayers.
The IRS aims to review pass through “entities and multinational taxpayers with international tax” problems. Thus, Retting stated that it is necessary for the agency to use more efficient teams to comb through these complex features. His says the number of employees at the IRS have decreased since the 1970s.
The new bill seeks $80 billion in funds to go after tax cheats. This is expected to generate $200 billion in new revenue that would lead to a total gain of $124 billion over the next ten years. A 1% execise tax on stock buybacks and a business minimum tax would also be a part of the package.
Critics of the bill say that it goes against President Biden’s vow not to raise taxes on those who earn $400,000 or less. This comes after Republicans highlighted a new review showing that the corporate minimum tax component could increase taxes for those earning $200,000 or less.