Key Takeaways:
– Democrats’ plans of expanding the IRS with nearly $80 billion and hiring new tax auditors is under scrutiny.
– Claims that stepped-up enforcement would raise $1 trillion over 10 years have proven misleading.
– The additional audits have only raised close to $2 billion, falling greatly short of projected amount.
– The Biden administration’s last-minute costly rules and regulations have been seen as an assault on taxpayers.
– The proposed changes affect business partnerships and how taxable assets are treated, eroding tax fairness.
Funding the IRS: A Fierce Debate
The recent frenzy about democrat’s funding the IRS with approximately $80 billion has incited passionate discussions across the nation. They are allegedly employing thousands of new tax investigators. The real question is, can their mission be justified or is it an unwarranted financial burden on taxpayers and businesses?
Questionable Audit Outcomes
According to the IRS, the results don’t seem to justify the expenditures. The push for extra audits has remained mostly unfruitful, having brought in less than $2 billion. A far cry from the billions theoretically expected, right? The claim that this plan is essentially “paying for itself” raises on pretty substantial eyebrows.
A Political Tool?
Going beyond the realm of fiscal fairness, critics argue this move may be a disguised political weapon. Was the principal aim ever to secure tax equity for all? Or merely a scheme to funnel more into the government’s pocket for political use? A concerning thought.
The Audience Isn’t Buying the Sell
Were you convinced by the progressives’ claims that a beefed-up IRS would generate almost $1 trillion over a decade from the affluent and businesses? Looks like majority of American voters weren’t either! Their arguments seemed built on casting entrepreneurs and small businesses as tax evaders, putting everyone in the hot seat until proven innocent.
The Unveiling of Questionable Measures
What raised eyebrows even more were the proposed regulations. Does the idea of IRS having access to your personal bank accounts or needing to report income from basic Venmo payments amongst friends make you uncomfortable? It did for a majority. Those who earn income from tips or various transactions were also targeted.
Impact on Business Partnerships
Business partnerships are the backbone of the American economy. These outfits are a respected means of structuring private companies. Amidst all this, the IRS has been setting up new rules that could jeopardize the future survival of business partnerships. A worrying trend for the 4.5 million business partnerships across the US.
Effect on Tax Basis Adjustment
You may be wondering, why should I care about business partnerships? Basically, these changes to the tax rules could impact the common practice of tax basis adjustments or “basis shifting”. In layman’s terms, the IRS may now decide how to tax your assets should you decide to sell or transfer your interest in a firm. Seems pretty unfair, doesn’t it?
The Failing Promised Bounty
The much-touted treasure trove that the new IRS rules and enhanced enforcement were predicted to yield remains elusive. Two years in and only around $1 billion has been recovered. Quite the shocker given the Democrats pumping up the IRS with a hefty $80 billion with a promise to save the U.S Treasury.
A Call for Action
The general sentiment amongst taxpayers, employers, and workers seeks a stop to these rushed regulations. We don’t need more problems now. Pump the brakes, Bidens, it’s time to put your pencils down. If these rule changes proceed, the incoming Trump administration should ready to repeal them swiftly come January. Now there’s a change that’s sure to induce a cheer across the nation!