Polina Tankilevitch / Pexels President Joe Biden’s administration does not fall asleep pears in the ashes. A few days ago (August 12), the US Congress passed a new law designed to fight inflation. However, it seems that the ruling Democrats decided to wage war on the average American citizen. The new law is to be used – and quite openly – to control taxpayers earning less than 400,000. dollars a year, which is actually the vast majority of Americans. Micro, small and medium-sized enterprises are also to be prosecuted, which is no longer surprising when observing how entrepreneurs and entrepreneurship are “strangled” in various ways in different countries.
The tax office in action
If you do not know where to get the money to save the state and its budget, reach deeper for the taxpayer. By creating a story about how the government tries to help citizens and supports entrepreneurship. And about how bravely he fights tax evasion and tax credit fraudsters. Increased control of households with average incomes will be carried out by the Internal Revenue Service (IRS) – the equivalent of our tax chamber. The IRS will verify that US citizens have correctly calculated their tax liabilities by identifying any underpayments. In recent years (2010-2019), this office especially controlled taxpayers with incomes below PLN 25,000. dollars a year, and – as he claims – earning more than 500 thousand. dollars. On his website, he admits that so far checks earning 200,000. dollars and more were rare. Now he suddenly estimated that individual taxpayers only in 2011-2013 underestimated their income tax receivables by an average of USD 245 billion and were “guilty” of a tax gap in the US budget. The IRS will be financially strengthened to hire new employees and increase the number of tax audits. The amount of the office’s funding reaches 80 billion dollars. President Biden’s administration has calculated that the increased control, which will be carried out in 2022-2031, will bring the budget over $ 200 billion in additional revenues.
An army of officials is coming for you
The new idea of harassing average Americans with tax controls (700,000 a year!), Who are already struggling with ubiquitous high prices, caused considerable consternation in the US and – not surprisingly – lively public debate. Elon Musk commented ironically on Twitter: “When a country that rebelled against taxes hires 87,000 new IRS agents,” this is the caption on the meme with a picture of a laughing British army officer. “They want to take $ 80 billion from taxpayers and hire an army of 87,000. bureaucrats in the IRS. They go for small businesses. The IRS itself says it intends to radically increase interest in independent contractors and small businesses, and not, for example, in General Motors, ”comments Grover Norquist, president of the Americans for Tax Reform association, in an interview with Fox News. And let this summary also serve as our commentary.