(PatrioticPost.com)- Elon Musk mocked Democrats’ efforts to give the IRS $80 billion amid fears the money would be used to target middle-income Americans with tax audits.
Musk’s meme was placed above a shot of a laughing British Army officer from a movie.
Musk’s caption says, “Fate 🖤Irony.” His message appears to say that expanding financing for tax authorities—part of which would be utilized for enforcement—violates basic principles like freedom from government intrusion.
Biden administration officials have insisted that the Inflation Reduction Act’s cash boost for the IRS won’t be utilized to enhance audit rates among American households making less than $400,000 annually.
Republicans say the money would pay tens of thousands of IRS officers to target average Americans.
“Washington Democrats propose to hire 87,000 IRS agents to audit more Americans like you. That’s more than the population of [President] Joe Biden’s hometown of Scranton, Rep. Kevin McCarthy (R-Calif.) stated in an Aug. 11 statement, as House Democrats prepare to approve the $700 billion spending bill.
A Treasury Department assessment from May 2021 indicated that an investment similar to the Inflation Reduction Act would allow the IRS to hire 87,000 people by 2031.
Grover Norquist, president of Americans for Tax Reform, cited the 87,000 statistic on Fox News.
The IRS claims they’ll go after independent contractors and small firms, not GM, smaller businesses.”
Janet Yellen says Republican accusations that tax auditors will target middle-income Americans are incorrect and partisan.
In a letter to IRS Commissioner Charles Rettig dated Aug. 10, she claimed the “much-needed” funds would be used to replace antiquated technology, improve taxpayer service, and enforce tax laws against high-earners and giant corporations that don’t pay taxes.
Yellen promised audit rates wouldn’t rise for households making less than $400,000 annually.
Yellen said any additional resources, including new people or auditors, should not be used to examine more small businesses or households under $400,000 than in the past.
In a letter to senators on Aug. 4, the IRS commissioner said the agency would “absolutely not” investigate small firms or middle-income Americans (pdf).
Democrats say the money is essential to catch wealthy tax evaders.
The CBO thinks the IRS spending rise will generate $203.7 billion from 2022 to 2031.
