The IRS plans to end a major tax loophole for wealthy taxpayers that could raise more than $50 billion in revenue over the next decade, the U.S. Treasury Department says.
The guidance and ruling being announced Monday includes plans to essentially stop “partnership basis shifting” — a process by which a business or person can move assets among a series of related parties to avoid paying taxes.
Biden administration officials said after evaluating the practice that there are no economic grounds for these transactions, with Deputy Treasury Secretary Wally Adeyemo calling it “really just a shell game.” The officials said the additional IRS funding provided through the 2022 Inflation Reduction Act had enabled increased oversight and greater awareness of the practice.
“These tax shelters allow wealthy taxpayers to avoid paying what they owe,” IRS commissioner Danny Werfel said.
Do it!
The officials said the additional IRS funding provided through the 2022 Inflation Reduction Act had enabled increased oversight and greater awareness of the practice.
Thank goodness for that!
And, yes, do it!
This is the way.
Indeed. Also, Republicans have already proposed dramatic cuts to the IRS, so we should be under no illusions about what will happen to this loophole and Direct File if Trump & Co. take control in November.
Every dollar invested in the IRS give more than that in taxes from cheaters. Worth it
Yeah, it’s a whopping 600% in general and DOUBLE that for auditing the top 10%!
If you’re for the government being fiscally responsible (rather than pretending that macroeconomic systems are identical to household budgets) you want rule changes like the one mentioned in the headline as well as more funding for auditing and other enforcement of existing IRS rules.
… for rich people.
Because historically it’s been the middle class and poor that get audited, never the rich.
In fact the IRS could just drop every investigation into those and focus on the rich every time.
After watching Finding The Money, terms like “raise” and “revenue” applied to taxes seem deliberately misleading.
I’m not sure. I’m not a wordsmith or an economist. But I would expect it to be something that conveys a sense that the money is being decommissioned rather than mobilized, or annihilated rather than gathered.
But the sense of deactivation or destruction is usually a negative feeling, so I would want to find a word that puts a slight positive spin on it. This is a happy conclusion to the money’s journey. Its task is done and the inflationary pressure associated with its work is now relieved.
But I would expect it to be something that conveys a sense that the money is being decommissioned rather than mobilized, or annihilated rather than gathered.
We have those already in economics and government spending when money is actually being decommissioned or destroyed. Quantitative tightening is one. That is when currency is being removed from the economy raising the value of each dollar remaining in the economy. However neither that or any other destruction method of money is whats happening here. That you’re choosing to see the action of taxation and spending of tax revenue as negative is more of a reflection of your personal preferences or politics.
But the sense of deactivation or destruction is usually a negative feeling, so I would want to find a word that puts a slight positive spin on it. This is a happy conclusion to the money’s journey. Its task is done and the inflationary pressure associated with its work is now relieved.
You’re not telling the whole story with that, and even worse, leaving off the most beneficial part of spending of tax revenue. You’re missing the Multiplier Effect. The reason spending of tax dollars is a good thing besides the obvious benefits to society of working roads, fire departments, education, and food supply guarantees, etc, is that each $1 dollar of taxes spent get spent again and again by those that receive it. If $1 of tax revenue is spent on building a road, that $1 goes to pay salaries of workers that then pay for food, which the store and eventually the farmer receive a portion of to feed their families and expand their businesses, which goes into pay other workers. Also each time this $1 is spent it is taxed, so a portion of that revenue drives more spending on society.
The spending of a tax dollar is the beginning, not the end, of the benefit.
What say you, “no new taxes, just close loopholes” Republicans?
Kick ass, IRS. Between this, tye free filing program and the new automatic taxes, I’m ecstatic about cheering them on.
I’ve already given mine. Why should rich people give less than their proportional share?
Easy to cheer them on when they’re forcing tax avoiders to pay taxes like the rest of the population.
Easy to cheer them on when they’re fixing loopholes constructed and exploited by the wealthy.
Easy to cheer them on when they’re streamlining a woefully archaic tax system.
They are using far more of the courts, currency, and infrastructure than we are. They are getting police protection of their property instead of having their pets murdered. They are getting massive government handouts that we are not.
They can start paying their fair share.
