Deductions for megamansions and Ferraris: The IRS details tax dodges by the ultra-wealthy and says it recently squeezed 100 millionaires for $122 million in missing taxes
Business InsiderNov 02, 2023
IRS Collects Over $520M in Back Taxes From Millionaires
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The Facts
The US Internal Revenue Service (IRS) said on Friday that it has collected more than $520M in back taxes from millionaire Americans over the past year.
The IRS credited the Inflation Reduction Act for helping it speed up efforts to scrutinize large corporations, high-income individuals, and complex partnerships not paying taxes.
The Spin
Democratic narrative
The IRS is doing a phenomenal job of reversing the historically low audit rates and ensuring that the ultra-rich pay what is legally owed under federal law. The funding has allowed the IRS to target wealthy tax dodgers, ensuring it recaptures hundreds of billions of dollars in revenue, which can then be reinvested into the country.
Republican narrative
The federal government is facing an economic crisis, and budget cuts are needed across the board. Exorbitant funding of the IRS doesn't have the impact that Democrats think it does, and targets the middle class more than the ultra-rich. Rather than using the funds to address the plethora of mismanagement issues within the department, the beefed-up IRS has wasted it on a reckless number of new auditors.