The largest offset in the Build Back Better Act is not a tax increase. Instead, it is an $80 billion investment to restore a depleted IRS.
@USTreasury expects this transformative investment to generate $480 B — $400 B net — in addtl tax collections over course of next decade.
@USTreasury expects this transformative investment to generate $480 B — $400 B net — in addtl tax collections over course of next decade.
https://twitter.com/PostOpinions/status/1461138101313675265
That is a large sum. But it's important to put it into context given the scope of the tax evasion problem faced by fed govt. Over next 10 yrs, IRS is on track to collect $7 T less than is owed. This enormous tax gap is around 3% of gross domestic product on an annualized basis
Today, the IRS has about the same number of auditors as it did during World War II, and the IRS can answer fewer than 30 percent of the phone calls it receives from taxpayers with questions.
IRS technology is woefully outdated, and it fails to allow for even simple data analytics to identify evaders. Providing the IRS the resources it needs will go a long way towards shrinking the tax gap.
Yet the Congressional Budget Office is soon to release its estimate of these efforts, which it is likely to score at netting less than half the Treasury number — some experts expect the final CBO estimate to be around $150 billion.
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