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Higher Taxes, More Audits Coming
Some potential impacts of the Inflation Reduction Act
Note: I source my data. To see the source, click on bolded and underlined text, which provides a link.
The Inflation Reduction Act, passed in the Senate on Sunday. It is also known as the Schumer-Manchin tax bill. According to the Wall Street Journal, it will put the IRS into “beast mode”.
One reason I feel wary of the bill — Bernie Sanders has spoken out against it. He pointed out that, according to the Congressional Budget Office, the bill would “have a minimal impact on inflation”. It also would not, according to Sanders, provide enough help for affordable health care, child care, and housing.
What is unusual in this political climate — Sanders was in agreement with Senate Republicans who cited a a Penn Wharton analysis that stated the bill would have a negligible impact on inflation.
Another potentially troubling aspect of the bill — it would provide more funding for the IRS.
The bill provides an additional $80 billion to the IRS budget and provides for the hiring of up to 80,000 more auditors and agents. The $80 billion is more than six times the current IRS budget of $12.6 billion.
