Democrats’ $80 billion wager: A bigger IRS will be a better IRS
Updated: Jun 19
By: Bella Lee
The Democratic Party has signed a new Inflation Reduction Act that bets on the success of the newly authorized Internal Revenue Service, which has historically been considered by Democrats an important part of improving health care, tax bills, and climate.
New funds for the IRS are collected for the federal government through high-income taxes. The funds for playing up the IRS comes from the Inflation Reduction Act, which will give $80 billion, and long-term goals of the Democrats will support in consolidating tax collection and administering corporations.
Additional money will go to the most expensive clean-energy technologies. Democrats want that with the money the government will bring in from the IRS, they will be able to help the lower- and middle-income families by using the money to buy the expensive technology.
Those lower- and middle-income taxpayers sometimes don’t pay their taxes, even in the smallest amounts, resulting in small debts that high-income families don’t usually have.
According to Washington Post writer Jacob Bogage, the IRS’s economic abilities “bring in on average better than $10 in revenue for every $1 spent pursuing audits.”
Those IRS workers are often the most well-educated economic taxpayers, though sometimes the taxpayers are the most vulnerable.