IRS GETTING AGGRESSIVE AGAIN
May 23, 2021 - Douglas Myser
IRS getting aggressive again. With the Biden Administration set to inject Trillions into a lackluster U.S. economy, the politics of debt financing have come home to roost. Under President Trump, Republicans didn't mind opening up the coffers of deficit spending to give tax breaks to the rich, but now have changed their ways and want Biden's plan paid for. Funny thing is so does President Biden. He is proposing a substantial increase in funding for the IRS, an agency which has been severely under funded for a decade. Its not just the rich that the IRS will be targeting, but also small business owners and because the Collection Division will see an increase as well, main street also. IRS getting aggressive again.
Due to the enormous size of the spending President Biden is proposing, investing in a crumbling infrastructure which is holding our competitive forces from growing the economy, seems necessary at this point in time. In fact the Congress has been debating and has stalled on this issue for a decade. President Biden seems intent to get it done and to pay for it, so as not to swell the deficit. The administration aims to pay for this plan by raising the top marginal income tax rate for wealthy Americans to 39.6 percent form 37 percent and raising capital gains tax rates for those who earn more than $1 million a year. President Biden will also seek to raise the tax rate on income that people earning more than $1 million per year receive through stock dividends, according to a person familiar with the proposal.
Administration officials have privately concluded that an aggressive crackdown on tax avoidance by corporations and the rich could raise at least $700 billion on net over 10 years, possible $1 trillion. The $80 billion in proposed funding would be an increase of two thirds over the agency's entire funding levels over the past decade. The back taxes that have accumulated will soon make it into the coffers to pay for an expanded U.S. economy. IRS getting aggressive again.
If the Covid Pandemic made it harder for you to pay your taxes, call us for Tax Resolution assistance. If you have Unfiled Tax Returns or a back tax debt, we can help. Our Tax Resolution Services include the filing of all IRS and State Revenue Department tax returns, then determining Tax Relief options in the tax codes, including the Offer In Compromise, Penalty Abatement, Payroll Taxes for business owners, Innocent Spouse, and if you live in San Diego, the San Diego IRS Fresh Start Program. We offer the Fresh Start Program both to every state and Internationally as well. Call before the IRS puts a Tax Levy on you. Our consultations are relaxed, call today. 1-888-689-7861