Democratic senators have called on Congress to increase the IRS funding to combat tax loopholes.
IRS funding increase (Photo: Oregon Public Broadcasting)
Republicans Urged Congress to Increase IRS Funding
According to UPI, Republicans proposed a bill last week, cutting $14.5 billion to the agency in exchange for $14.3 billion in support to Israel as its conflict with Hamas intensifies. The bill also provides $80 billion in IRS funding over 10 years to bolster agency functions, such as customer service, taxpayer assistance, and criminal investigations. However, President Joe Biden has threatened to veto the bill.
Democratic senators, like Sen. Thomas Carper, D-Del., stated that the IRS funding must be increased for better technology and more auditors to enforce tax compliance.
Increasing IRS Funding Combats Tax Fraud
According to Politico, the senators focused on the tax avoidance strategy known as “buy, borrow, die,” wherein wealthy individuals accumulate assets while skipping out on the taxes that they owe. Chairman Bob Wyden, D-Ore. stated that tax laws did not apply to rich Americans and that they were avoiding their fair share of taxes.
The chair of Patriotic Millionaires, Morris Pearl, also stated that the way the rich Americans value their money and wealth was the original sin of the tax code, and additionally stated that the IRS funding should be increased.
