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"The researchers suggest that’s because the IRS set up systems that are more likely to flag tax returns with potential mistakes in how some tax credits, like th
by JPKab 3y ago
"The researchers suggest that’s because the IRS set up systems that are more likely to flag tax returns with potential mistakes in how some tax credits, like the earned-income tax credit (EITC), are claimed. There is no evidence that Blacks cheat on their taxes, but they do file at disproportionately higher rates the kinds of returns that the IRS approach targets."
Translation:
Lower income taxpayers who know to take advantage of specific programs are more likely to be audited, independent of race. Black Americans are more likely to use these programs, but saying that doesn't attract clicks the same way that "The IRS is racist!" does.
- atlasunshrugged 3y agoAgreed, it's somewhat hysterical reporting (but hey, blame the consumers, they're the ones that click on those headlines). However, in the end it is still pretty interesting that they are focused on looking for fraud at the lower end of the income spectrum rather than the higher end where I imagine the risk/reward ratio is much higher... if the IRS sends a claims letter to a poor family for 1k, they'll probably pay it or not have a way to fight it. If the IRS sends a claims letter to a wealthy person for 100K, they're going up against accountants and tax lawyers who are probably better equipped than the IRS itself.
- nonethewiser 3y agoThere is real demand for racism.
- runako 3y agoThe Civil Rights Acts stipulate that it's also illegal to use proxies for race as a means of targeting members of a racial group. (This hasn't gone to court, so we don't know whether this targeting was intentional or unintentional. Under the Acts, it likely does not matter. We see suits like this all the time, and this general rule is typically upheld. For a recent example with reasoning, look at the federal appeals court ruling against a North Carolina voter ID law.) We are likely to see the Supreme Court rule as much again this summer. Key search term here is "disparate impact" if you are curious. The key takeaway here is this conduct by the IRS is possibly illegal under federal law.
- benmmurphy 3y agoYou have to be careful with 'disparate impact' because it cuts both ways. For example let's say we live in some utopian world where there is no racial bias but for some random reasons different groups of people will break different laws at different rates but overall on average outcomes of the law are the same. If you wanted to introduce racial bias in this system in favour of some group then you could just find the laws that disproportionately effect your favoured group then argue for their removal under the theory of 'disparate impact'. Our world of course is much more complicated but I think it should be clear that 'disparate impact' can be a way to introduce more racial bias into the system.
- runako 3y agoI provided background information and toeholds for further research to underline the fact that this is not a topic that warrants armchair theorizing. Instead, this is a subject that has undergone extended scrutiny over the last 100 years or so, in academia, governing bodies, executive branches, and courts at the local, state, and federal levels. Your perspective has been considered and is present in the literature alongside situations when it may or may not be relevant. > let's say we live in some utopian world where there is no racial bias but for some random reasons different groups of people will break different laws at different rates but overall on average outcomes of the law are the same This scenario has zero relationship to anything in the article, at any level. I'm not sure why you introduced it here.
- DonHopkins 3y agoHey, how about first we improve society enough that we live in some utopian world, then we can worry about dealing with that edge case scenario from a better position than we're in now.
- NovemberWhiskey 3y agoI think the question is, reasonably, being asked why a government spending benefit that targets one racial group is legal when the audit activity that relates to the spending benefit is not, because the spending benefit targets one racial group.
- causi 3y agoRight, and the IRS does choose, for either budgetary or laziness reasons, to target people less likely to lawyer up.
- NovemberWhiskey 3y agoIRS targets non-compliance that's widespread and mechanically discoverable. It's the same reason why they'll just auto-fix your return for you if you make a numerical error etc.