IRS plans to raise $50 billion over 10 years, closing loophole exploited by the wealthy

[BumRushDaShow]

Source: NBC News

June 17, 2024, 10:17 AM EDT


The IRS estimates it will raise more than $50 billion over the next decade by closing a loophole often exploited by wealthy filers seeking to avoid paying taxes.

The loophole allows such taxpayers, as well as businesses, to move assets between entities in a way that authorities say has no economic purpose. Deputy Treasury Secretary Wally Adeyemo called the practice “really just a shell game" in a statement.

The use of such pass-through businesses has nevertheless increased 70% from 2010 to 2019, and helped allow the top 1% avoid paying $160 billion in taxes, Treasury said. “Treasury and the IRS are focused on addressing high-end tax abuse from all angles, and the proposed rules released today will increase tax fairness and reduce the deficit,” U.S. Secretary of the Treasury Janet Yellen said in a statement.

The plan builds on ongoing IRS efforts to increase audits on the wealthiest taxpayers, large corporations and complex partnerships.“These tax shelters allow wealthy taxpayers to avoid paying what they owe,” IRS Commissioner Danny Werfel told reporters on a press call Friday.

Read more: https://www.nbcnews.com/business/taxes/irs-raise-50-billion-dollars-closing-loophole-exploited-wealthy-rcna157492

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Link to Treasury Department PRESS RELEASE - U.S. Department of the Treasury, IRS Announce New Initiative to Close Loopholes, Ensure Wealthiest Taxpayers Pay What They Owe

[Think. Again.]

1. K&R

[Stargazer99]

2. When a country allows you to become wealthy-you owe it something and stop the "poor me crap"

I can just hear the whining and threatening that this auditing of the rich will destroy the economy and other such crap. Watch out! the rich will try to defund the IRS auditing! Are you going to let them get away with it?

[marble falls]

3. Only $50billion in 10 years? Who wrote this program, the wealthy? Elon Musk alone "earns" that and more in one year.

[KPN]

7. Rec'd your post, but want to say that it's a start.

There’s still a long way to go to fix a government where corporations are people, money is speech, and “lobbying” includes writing federal legislation for legislators you support — with individual as well as special interest PAC campaign contributions — to push through. There’s a reason ee have “best government money can buy”.

[marble falls]

10. It is a start, weak tea that it also is.

[KPN]

12. No question. But it feels to me like the first real and concrete push back

against trickle-down by Democrats in forever. So for me, it’s a good sign. For Joe, this is a big step away from methods of his past (bi-partisan compromise — which btw from my middle class standpoint always seemed more like capitulation, meet in the middle, decorum, etc). This is a clear push back. And yes, we need much more of this. Trickle-down is the largest scam in history; it is and always was a giant “hoax”.

[twodogsbarking]

4. Fix the tax code. Stop trying to tweek it. Replace it.

[ZonkerHarris]

5. and uncap the Social Security collected from the rich and save that too.

[BComplex]

6. We have to keep Democrats in congress for the next 10 years, because republicans would put an end

to any IRS crackdown on billionaires. That's who owns the republicans, lock stock & barrel.

[Marthe48]

8. GOTV!

n/t

[Seinan Sensei]

9. "Every Billionaire represents a failure in policy"

Last edited Mon Jun 17, 2024, 06:48 PM - Edit history (1)

- AOC

[Traurigkeit]

11. I.R.S. going in the correct direction in closing holes that the rich openned over the decades

[70sEraVet]

13. So, the IRS has decided to take away any incentives to become a billionaire!

I'll show them -- I REFUSE to accumulate that level of wealth!

[pfitz59]

14. They need to stop the 'loan as salary' scam

and tax those 'loans'.