The Truth Behind Joe Biden’s IRS Hiring Plans: Debunking Misconceptions

Introduction

The recent resurgence of misconceptions about Joe Biden's plans to hire IRS agents to audit individuals with an income of 25,000 or less has sparked a wave of skepticism. In reality, the Biden administration’s efforts to bolster the IRS are aimed at combatting significant tax evasion, particularly by large corporations and high-income individuals. This article will clarify the actual intentions behind the IRS hiring plan and highlight the misconceptions surrounding it.

Key Points to Clarify

The allegations that Joe Biden intends to hire enough IRS agents to audit every individual earning 25,000 or less annually are unfounded. To set the record straight, the new funding to the IRS is primarily aimed at recruiting and training 87,000 additional agents over the next decade. This expansion includes agents, administrators, and computer specialists to replace those whose positions are set to expire in the next five years. These new hires will not target individuals with an income of 25,000 or below, as most of these individuals do not have a tax obligation and receive their full tax refunds.

Funding and Focus of the IRS Expansion

Biden's administration has proposed an 80-billion-dollar increase in the IRS budget over the next ten years. The goal is to improve the IRS’s capabilities to detect and rectify underreporting and non-payment of taxes. The focus will predominantly be on individuals earning over 400,000 dollars annually, as it is believed they are more likely to engage in tax avoidance maneuvers. This includes high-net-worth individuals, wealthy corporations, and individuals involved in complex financial activities.

Challenges in Tax Compliance

The government estimates that between 500 billion and 1 trillion dollars in taxes have gone unpaid. These statistics underscore the necessity of enhancing IRS enforcement mechanisms to ensure better tax compliance. Joe Biden’s plan aims to address this issue head-on by identifying those who deliberately underpay or fail to pay taxes.

Focus Areas for the New IRS Agents

The primary focus of the additional IRS agents will be on several key areas:

Real Estate Sales and Low Capital Gain Sales: Real estate transactions and individuals taking advantage of low capital gains sales may come under increased scrutiny. Self-Employed Borrowers: Self-employed individuals and businesses may face more rigorous audits. Cash Transactions Over a Threshold: Cash transactions surpassing a certain amount will be disclosed to the IRS.

These changes are designed to maintain a level playing field and ensure that everyone pays their fair share of taxes.

Conclusion

The proposed IRS hiring plan is a strategic move to tackle tax evasion and promote fair tax collection. It does not target low-income individuals, as typically, they do not owe taxes and often receive larger refunds. The focus will be on high-income earners and large corporations, as they are more apt to engage in tax avoidance practices. Misconceptions about this plan should be addressed to ensure a more informed and constructive public discourse on tax policy.