The GOP has done a number on the IRS.

One would think that the IRS was a Democratic Party stronghold by the way they’ve cut funding to the agency.  (I guess it’s like TheDonald alleging that the GOP members of Mueller’s investigatory staff all miraculously changed parties from the GOP to effect the investigation of TheDonald’s obstruction of justice.)

Yet, the IRS is the agency responsible for collecting virtually all the funds that the US uses to operate.

And, given that the funding the IRS is receiving is less than it had a few years ago (this year, the IRS budget is below that at the turn of the century, and 19% below its peak funding reached a decade [2010] later).  That is despite a new tax law and despite more tax forms being filed.  So, it’s not surprising that fewer taxes are being subjected to audit and verification.  (The number of auditors is down by 38% since 2010!  Since the average collection officer collects $ 2 million a year, that means we are not collecting some $ 3.3 billion in taxes from cheaters.)

Why?  Because the more money a taxpayer makes, the lower the chances for an audit.

Read that again.

The US government under TheDonald and his minions already adjusted the tax rate to benefit the rich at the expense of the rest of us.  Under TheDonald, the US has also developed regulations to protect the powerful and rich at the expense of the rest of us.  And, now the IRS is adjusting its powerful enforcement power to avoid bothering the rich, instead focusing on the rest of us.

If you look at the data the way the government wants to present it, you would think that the rich are the primary focus of the IRS audits, with their stated 14% and 8% audit rates.  Until you see that the total number of audits per year for those with taxable incomes above $ 5 million (around 2700) are not even 1/2 the hourly rate at which those making less than $ 200K are audited.

Which brings up the issue that Nina Olson, the National Taxpayer Advocate, has identified as the most serious tax problem in the US are the audits.  She commented  that correspondence audits (the ones where you get a letter requesting more information) are totally ineffective in promoting future compliance.  Too many taxpayers feel there is little justice in this program, as opposed to in-person audit.

Now that I griped, let me bring up a good thing TheDonald is doing.  (Yes, even a broken clock can be right twice a day.)   Before I go overboard, I need to qualify that- TheDonald is proposing this action; it’s not a fait accomplit.  He proposes an increase in IRS funding to the tune of $ 15 billion over the next decade.

Which should bring the IRS back up to the levels it was a decade ago.

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