The new patriotism.
President Biden on Thursday again urged Congress to pass the $739 billion reconciliation package, vowing that it will “lower” the record-high inflation Americans are facing and cut the deficit as the U.S. grapples with a recession.
“My message to Congress is this: Listen to the American people,” Biden said. “This is the strongest bill you can pass to lower inflation, continue to cut the deficit, reduce health care costs, tackle a climate crisis and promote America’s energy security and reduce the burdens facing working-class and middle-class families.
“Pass it. Get it to my desk. Pass it for the American people. Pass it for businesses and workers. Pass it for America.”
Pass it for the Tesla electric car owners who are being subsidized to the tune of billions of dollars even while raising taxes on the middle class. And auditing them.
The pact between Sen. Joe Manchin and Majority Leader Chuck Schumer includes $80 billion in new funding for the tax man. Democrats claim this “investment” will yield more than $200 billion in revenue. That estimate is highly speculative, but if it’s anywhere close to right IRS auditors will soon be coming after tens of millions of Americans.
The $80 billion is more than six times the current annual IRS budget of $12.6 billion. The money will be ladled out over nine years and comes with few strings attached. The main Democratic command is for the tax agency to bring the hammer down on taxpayers.
The bill earmarks $45.6 billion for “enforcement,” including “litigation,” “criminal investigations,” “investigative technology,” “digital asset monitoring” and a new fleet of tax-collector cars. The result will be far more audits, civil suits and criminal referrals.
The main targets will by necessity be the middle- and upper-middle class because that’s where the money is. The Joint Committee on Taxation, Congress’s official tax scorekeeper, says that from 78% to 90% of the money raised from under-reported income would likely come from those making less than $200,000 a year. Only 4% to 9% would come from those making more than $500,000.
The IRS knows the super-wealthy employ lawyers and accountants who make litigation time-consuming and risky. It also knows that Democrats would howl if the agency pursues fraud in the earned-income tax credit program, despite what the IRS has estimated are $18 billion in improper payments each year.
Do it for the IRS auditors. Do it for the Tesla owners. Hike inflation some more with corrupt government spending. Americans haven’t suffered enough yet.