Paul L. Caron
Dean




Wednesday, August 10, 2022

Cato: IRS Funding Hypocrisy In The Inflation Reduction Act

Chris Edwards (Cato Institute), Senate Bill: IRS Funding Hypocrisy:

The Senate’s Inflation Reduction Act includes an $80 billion increase in the Internal Revenue Service budget over a decade, which would roughly double the agency’s budget by 2031. ...

Senators supporting the bill talk about “tax cheats” and “closing tax loopholes.” But this is a huge hypocrisy. The Senate bill itself creates new loopholes and tax breaks, and complicated breaks drive noncompliance with the tax system. The Senate bill would expand a slew of special‐​interest credits and other breaks within a $370 billion orgy of green subsidies and corporate welfare.

This chart illustrates the relationship between politicians and special‐​interest tax breaks:

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More aggressive IRS enforcement will mean more paperwork, more lawyer fees, more time wasted on tax planning, more anguish and uncertainty, less privacy, and less personal financial security. Government will win, but society will lose.

https://taxprof.typepad.com/taxprof_blog/2022/08/cato-irs-funding-hypocrisy-in-the-inflation-reduction-act.html

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