THERE IS SOMETHING irresistibly appealing to certain politicians about the idea of giving more money to the IRS. Like the king in “Rumpelstiltskin,” they thrust fistfuls of straw at the tax collection agency and demand that it be spun into gold. Also like the king, they do not care to look too closely at where exactly the gold is coming from, or at what eventual price.
In August, the Inflation Reduction Act allocated $80 billion in new funds to the IRS. A massive sum, but one carrying the weight of outsized political promises: Enough to hire 87,000 workers, increase the agency’s enforcement budget by 69 percent, and surgically punish rich tax cheats yet somehow leave small businesses and everyone who earns less than $400,000 a year unmolested—all while raking in a hefty return in federal revenue by closing the “tax gap” created by evasion.
The Congressional Budget
