Says beefed up enforcement funding cannot be used to target those making less than $400,000 per year
Washington, D.C.--U.S. Senate Finance Committee Ranking Member Mike Crapo (R-Idaho) filed an amendment to the Democrats’ misleadingly-named “Inflation Reduction Act of 2022” to prevent the IRS from using its massive, $80 billion cash infusion on enforcement actions designed to squeeze more revenue out of American taxpayers who earn less than $400,000 per year.
“My colleagues claim this massive funding boost will allow the IRS to go after millionaires, billionaires and so-called rich ‘tax cheats,’ but the reality is a significant portion raised from their IRS funding bloat would come from taxpayers with income below $400,000,” said Crapo. “Otherwise, why would the legislative text say the funding isn’t intended to target taxpayers below that threshold? My colleagues and Americans know the real answer: small business owners, cash-heavy businesses and those who can’t afford legal teams are easy targets for the new IRS agents and their audits. My amendment would ensure the Democrats’ supersized-IRS proposal cannot violate the President’s pledge to not raise taxes on those making less than $400,000.”
Senator Crapo’s amendment would prevent the IRS from using any of the supersized $80 billion of funding for audits on hard-working American taxpayers, including individuals and small businesses, with taxable incomes below $400.000.
The amendment has teeth, in contrast to the Democrats’ bill containing merely an unenforceable statement of intention to not squeeze more revenue out of the middle class.
Senate Democrats voted the amendment down along party lines, 50-50.