A new bill seeks to codify the $400,000 income floor for targeting by IRS auditors. The bill’s language mirrors an amendment introduced by Sen. Crapo (R-ID), which the senate rejected 50-50 along party lines. Sen. Crapo said, “in light of recent proposals to massively expand the IRS, with unprecedented amounts of mandatory funding, and the IRS’s continued abuses of taxpayer rights and privacy, any additional IRS funding and monitoring of Americans’ private finances must come with guardrails to help protect against abuses.”
President Biden’s Inflation Reduction Act appropriates funds for a litany of left-wing priorities, including earmarking $80 billion for the IRS to hire 87,000 new staff. The army of auditors is growing in size just as low and middle-income Americans are recovering from the COVID lockdowns when millions of Americans were laid off and filed for unemployment. Meanwhile, housing costs and gas prices have risen to eye-popping levels.
Sen.Crapo’s two-page bill adds just 21 words to President Biden’s Inflation Reduction Act: “None of the funds appropriated under subsection (a)(1) may be used to audit taxpayers with taxable incomes below $400,000.”
The straight-forward edit to Biden’s law has been panned by democrats and the media as an attack on a necessary service, and needlessly divisive. Republicans are left to wonder why the bill lacks bipartisan support when IRS Commissioner Charles Rittig himself wrote in a letter to lawmakers in August promising that, “audit rates will not rise relative to recent years for households making under $400,000.”
Natasha Sarin, a counselor for tax policy and implementation at the Treasury Department echoed Rittig saying that “these resources are not raising audits on any small business or any household that makes under $400,000 a year.”
Senate Democrats claim the massive funding boost will allow the IRS to administer the tax code more fairly, thus paying for the left-wing priorities in the act. The White House’s own factsheet touts that the Inflation Reduction Act “is the most aggressive action we have taken to confront the climate crisis.”
President Biden signed The Federal Inflation Reduction Act into law on Tuesday, August 16. The law is a slimmed-down version of the Build Back Better bill that failed in the senate due to moderate Sen. Joe Manchin’s (D-WV) refusal of support.