4 ms·

This but non-sarcastically, and at institutional scale. The non-action of the IRS vs the .1% is quite well documented: https://www.gq.com/story/no-irs-audits-f

This but non-sarcastically, and at institutional scale. The non-action of the IRS vs the .1% is quite well documented: https://www.gq.com/story/no-irs-audits-for-the-rich https://www.gq.com/story/no-irs-audits-for-the-rich > "ProPublica estimates that as a result, the U.S. is losing at least $18 billion dollars in revenue each year. In a letter to Congress, Rettig told Democratic senator Ron Wyden of Oregon that he and the agency are well aware that it would be far more lucrative and productive to pursue tax fraud and evasion of the wealthiest Americans, but without Congress restoring its budget, there's no way to make that happen." I have no doubt that $18 billion figure is wildly underestimated. In Ireland we lose at least 10 billion euro a year to tax evasion by the wealthiest, with only 5 million people.

refurb 5y ago
One reason why low income tax payers are so commonly audited is due to the earned income tax credit (EITC). It’s a direct cash transfers from the government to low income earners and easily abused.
- jessaustin 5y ago
  If it were "abused" by 100% of filers, it would almost be a UBI. Which would be a good thing. (It would be even better if the procedure for receiving it were "be a human living in USA", rather than submitting complicated bureaucratic forms on a particular schedule.) The problem with EITC and other similar benefits such as those instituted temporarily in response to Covid pandemic is that such benefits invariably have complicated means tests. Without that, not only would IRS examiners have more time to go after the big evaders, not only would more of the "deserving poor" actually receive the benefit, but also it would be great for the economy.
- mandmandam 5y ago
  Direct cash transfers to low income earners are exactly what America needs. Inequality is at record levels, because the whole economic and justice system is ridiculously rigged. The EITC helped 28 million families at an estimated net cost of 17% of $70 billion - 12 billion dollars [0]. That's quite a bit less than the at least 18 billion easily recoupable, as mentioned. If the EITC is abused, then by all means fund the IRS so they can fight the abuse (which they seem to be doing already). And again - it helped 28 million families, rather than some oily tax accountant, offshore goons, and private jet company shareholders. I'd like to see America start punching up instead of down - it's really the countries only hope of being somewhere worth raising children in. [0] https://www.pgpf.org/budget-basics/what-is-the-earned-income-tax-credit https://www.pgpf.org/budget-basics/what-is-the-earned-income...

refurb 5y ago

One reason why low income tax payers are so commonly audited is due to the earned income tax credit (EITC). It’s a direct cash transfers from the government to low income earners and easily abused.

jessaustin 5y ago
If it were "abused" by 100% of filers, it would almost be a UBI. Which would be a good thing. (It would be even better if the procedure for receiving it were "be a human living in USA", rather than submitting complicated bureaucratic forms on a particular schedule.) The problem with EITC and other similar benefits such as those instituted temporarily in response to Covid pandemic is that such benefits invariably have complicated means tests. Without that, not only would IRS examiners have more time to go after the big evaders, not only would more of the "deserving poor" actually receive the benefit, but also it would be great for the economy.
mandmandam 5y ago
Direct cash transfers to low income earners are exactly what America needs. Inequality is at record levels, because the whole economic and justice system is ridiculously rigged. The EITC helped 28 million families at an estimated net cost of 17% of $70 billion - 12 billion dollars [0]. That's quite a bit less than the at least 18 billion easily recoupable, as mentioned. If the EITC is abused, then by all means fund the IRS so they can fight the abuse (which they seem to be doing already). And again - it helped 28 million families, rather than some oily tax accountant, offshore goons, and private jet company shareholders. I'd like to see America start punching up instead of down - it's really the countries only hope of being somewhere worth raising children in. [0] https://www.pgpf.org/budget-basics/what-is-the-earned-income-tax-credit https://www.pgpf.org/budget-basics/what-is-the-earned-income...