Right-wing political advocacy groups funded by wealthy Americans and big corporations are reportedly mobilizing against a bipartisan agreement to add $ 40 billion to IRS funding, money that would be used to crack down on wealthy tax evaders killed by the Republican gutting the agency Party have benefited over the past few years.
The proposed increase in the IRS budget – which was cut by an estimated 20% between 2010 and 2018 – is part of an infrastructure package negotiated by a bipartisan group of Senators and President Joe Biden that originally raised $ 80 billion in additional IRS Funds had requested over the next decade.
The $ 40 billion increase proposed by the bipartisan group is presented as a way to “reduce the IRS tax gap,” the difference between taxes owed and taxes actually collected by the federal government. Treasury Secretary Janet Yellen suggested in May that the gap could be as high as $ 7 trillion.
As the Washington Post reported on Wednesday, the IRS’s deployment of the bipartisan infrastructure plan is meeting “opposition from well-funded conservative groups who are strongly opposed to expanding the reach of a tax collection agency they have long claimed to be politically motivated” .
“Among the conservative groups leading the opposition are the Committee to Unleash Prosperity, FreedomWorks, the Conservative Action Project and the Leadership Institute,” the Post noted. “They are preparing a letter warning Republicans not to negotiate with the White House unless they agree not to fund ‘any additional funding for the Internal Revenue Service’.”
You can’t raise taxes, you can’t raise taxes that have just been lowered, and you can’t enforce existing tax laws -… https://t.co/v8vByWTnkE
– Taniel (@Taniel) 1625707075.0
The groups are expected to send their letter to Senate minority leader Mitch McConnell (R-Ky.), Who has not yet approved the bipartisan framework and has threatened his Democratic counterparts with a “hell of a fight” over their infrastructure priorities lead – and signs that he might be open to calling on the conservative groups.
Last month, McConnell blamed “someone at the IRS” for passing the tax returns of some of the richest people in the US to investigative agency ProPublica, which used the documents to publish a series of stories detailing the ubiquitous tax evasion of the rich describe.
“Our tax returns are legally confidential because of these kinds of gimmicks,” McConnell said in an interview. “These people, whoever did this, should be hunted down and thrown in jail.”
Deep cuts to the IRS budget over the past decade have resulted in a sharp drop in enforcement, a trend that has mainly rewarded wealthy and large corporations. Between 2010 and 2018, according to the Center on Budget and Policy Priorities, the IRS review rates for the largest U.S. corporations and American millionaires fell 51% and 61%, respectively.
In 2019, ProPublica reported that due to insufficient funding and the resulting lack of staff, the IRS “is now screening poor Americans at about the same rate as the top 1%.”
Well-heeled conservative organizations have long resisted efforts to repair the damage caused by the Republican-cited budget cuts to the IRS. In May, Politico reported that right-wing groups “have launched a campaign of television advertising, social media messages and emails to critical supporters”. [Biden’s earlier] Proposal to hire nearly 87,000 new IRS employees over the next decade to raise money from tax fraudsters. “
“So you are telling me that you are against tax evaders?” asked Rep. Ro Khanna (D-Calif.) mockingly in response to the right wing campaign. “Quite a brave move, GOP.”
According to the Post, among the organizations leading recent efforts to prevent IRS scores from increasing include “those who have received funds from large Conservative donors, including the Mercer Family Foundation, the Sarah Scaife Foundation and Donors Trust, one of the donors.” advised fund, the conservative and libertarian reasons. “
“One signatory to the letter, Phil Kerpen of American Commitment, worked for five years with Americans for Prosperity, the main political arm of the influential Koch network,” the Post reported.