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Perhaps the previous paragraph of context helps: > IRS Funding Decisions Fail to Take Into Account “Return on Investment.” On a budget of $11.8 billion, the IR
by elihu 8y ago
Perhaps the previous paragraph of context helps:
> IRS Funding Decisions Fail to Take Into Account “Return on Investment.” On a budget of $11.8 billion, the IRS collected $2.52 trillion in FY 2012. That translates to an average return-on-investment (ROI) of about 214:1. Yet the appropriations process treats the IRS like any other discretionary spending program, with no explicit recognition that each dollar appropriated for the IRS generates substantially more than one dollar in additional revenue. Last year, the IRS Commissioner estimated in a letter to Congress that proposed reductions in the IRS budget would cause tax collections to fall seven times as much.
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> “No business would fail to fund a unit that, on average, brought in $7 for every dollar spent. Shareholders would rebel and bring lawsuits, or at least oust the management or board of directors,” Olson wrote in her preface to the report. “Yet this is precisely what we are doing with the IRS budget.”
- dragonwriter 8y ago> No business would fail to fund a unit that, on average, brought in $7 for every dollar spent. Shareholders would rebel Even if the money it brought in came mostly from the shareholders, and disproportionately those most engaged in corporate governance?
- SamReidHughes 8y agoI read the paragraph. It says the marginal return is 7:1. And that's only counting the IRS's side of the costs.