Investing in IRS Can Help Pay for Biden’s Spending Plan
Number of the Day: The most relevant or interesting figure in personal finance
That’s how much unpaid tax the IRS may be able to recoup from tax evaders if more investments (like the kind the president proposed this week) are made in the tax collecting agency, according to a recent analysis.
Investing less than $100 billion in the IRS over a decade would generate $1.2 trillion to $1.4 trillion in additional tax revenue, primarily from high-income individuals who are most responsible for underpaying their taxes, according to an analysis by some former IRS and Treasury heavyweights published late last year.
President Joe Biden’s American Families Plan, unveiled Wednesday, includes spending roughly $80 billion to upgrade IRS technology and hire more staff to more aggressively pursue tax cheats, particularly those with the highest incomes. Biden would use the additional revenue to help fund a sweeping set of proposals to help make school and childcare more affordable, among other things.