Report: IRS Boost Will Rake In $20B Extra From Middle Class, Small Business

Report: IRS Boost Will Rake In $20B Extra From Middle Class, Small Business

( – The recent passage of the Inflation Reduction Act (IRA) will provide $80 billion in funding for the Internal Revenue Service (IRS) to more than double its workforce and hire an additional 87,000 agents. The preliminary assessment released by the Congressional Budget Office (CBO) makes it appear as though the IRS plans to bring in billions from small businesses and the middle class. Some Americans are now concerned the expansion will result in the agency auditing middle- and lower-class Americans.

According to a House Committee on Ways and Means press release, the CBO confirmed that $20 billion of the estimated $124 billion in additional revenue could end up coming from middle-income Americans. The same memo also directed attention to the fact that all Democrats in the Senate voted against an amendment Senator Mike Crapo (R-ID) suggested that would have protected people making less than $400,000 a year.

The Ways and Means Committee additionally mentioned that the IRS would be capable of conducting up to 1.2 million more audits per year. Around half of those will focus on Americans earning under $75,000 annually.

Biden campaigned on the promise that he would not increase taxes for individuals in those tax brackets, and the act doesn’t appear – on the surface – to break that promise. Many citizens are hesitant about what the IRS might do with that amount of power, though, and wonder if they can expect to experience the hassle of increased audits instead.

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