Treasury Sec. Directs IRS to Not Increase Audits on Middle-Income Americans

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    The Facts

    • Treasury Sec. Janet Yellen on Wed. directed the Internal Revenue Service (IRS) not to use its additional funding from the Inflation Reduction Act to increase its level of audits for Americans earning $400K a year or less.

    • In a letter to IRS Commissioner Charles Rettig, Yellen argued that the $80B over the next 10 years, including hiring 87K new IRS employees, will be used to "improve taxpayer service," and not target middle-income Americans.


    The Spin

    Democratic narrative

    Despite the hyperbolic allegations made by Republicans, what this bill actually does is empower the IRS to enforce tax laws already on the books. While a small number of lower income tax evaders may face more scrutiny, the far larger target will be extremely wealthy people who have not paid their fair share - in the millions and billions - for years.

    Republican narrative

    The Democrats knew that, and probably wanted, middle- and low-income taxpayers to face more audits when they all voted against a Republican amendment to exclude such practices. On top of that, 99% of Americans earn less than $400k, so it would be silly to think the IRS wouldn't use their new agents to go after these hard-working Americans.


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