A new Democratic spending plan will expand the US Internal Revenue Service (IRS) in a bid to boost government revenue and fight inflation.
In a bill Democrats are calling ‘The Cut Inflation Act of 2022’, the size of the IRS could grow significantly as part of a broader effort to boost ‘taxpayer compliance’ , according to the text of the bill that references a 2021 U.S. Department of the Treasury Report. The bill will increase IRS spending by nearly $80 billion over the next 10 years, on top of its current budget of $13.7 billion, to hire thousands of new IRS officers. IRS and expand agency operations, facilities and services.
The IRS will get $45 billion to hire more auditors and attorneys to increase its ability to collect taxes and punish those who don’t pay what they owe. The service will also spend more than $25 billion to cover growing operating expenses, including office rent and transportation costs.
However, in testimony before the Senate Finance Committee in April, IRS Commissioner Charles Rettig said more than half of the agency’s employees work full-time from home. Additionally, the service’s fleet of vehicles was already considered bloated and the federal agency was unable to certify that its vehicles were only used for official business purposes, according to an inspector’s report. general of 2021.
The spending package will also include $5 billion and an additional $3 billion for “Business Systems Modernization” and “Taxpayer Services.” According to the bill’s Democratic summary, the move aims to generate $124 billion through better “tax enforcement” measures and to fight inflation.
Democrats are seeking to boost government revenue to fund their spending program that will cost a total of $430 billion in a time of economic malaise and falling audit rates.
An IRS spokesperson told DCNF that the service is not commenting on the proposed legislation.
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