The Government Just Admitted It Doesn't Really Try to Collect Rich People's Taxes

[Crtcl Rice Theory 2,432]

https://www.newsweek.com/government-just-admitted-it-doesnt-really-try-collect-rich-peoples-taxes-1577610

 

By some estimates, the wealthiest 1 percent of Americans manage to avoid paying about a quarter-trillion dollars of owed taxes every single year. Now, new government data show that audits of the super-rich and large corporations have hit a new low, leaving billions of dollars of uncollected taxes at precisely a moment when lawmakers say new revenue is needed to fund infrastructure and climate investments.

 

In response, two progressive Democratic lawmakers have authored legislation cracking down on tax evasion.

The new Internal Revenue Service figures compiled by Syracuse University researchers show that in the last eight years, there has been a 72 percent drop in the number of audits of those making more than $1 million. In all, 98 percent of those making more than $1 million did not face an audit last year.

 

There has also been a 55 percent drop in the number of audits of America's largest corporations. In 2012, almost all corporate giants were audited. In 2020, however, almost two thirds of those corporations were not subjected to audits.

[Dashinka 24,941]

So why did the IRS reduce the audits?  Btw, I loved the glossed over math that shows a $400 billion budget boost over ten years to the IRS would bring in an additional $100 billion in revenue.  Not a very good return.  Other than that, the story was what would be expected.

[Steeleballz 7,550]

17 minutes ago, CanAm1980 said:

https://www.newsweek.com/government-just-admitted-it-doesnt-really-try-collect-rich-peoples-taxes-1577610

 

By some estimates, the wealthiest 1 percent of Americans manage to avoid paying about a quarter-trillion dollars of owed taxes every single year. Now, new government data show that audits of the super-rich and large corporations have hit a new low, leaving billions of dollars of uncollected taxes at precisely a moment when lawmakers say new revenue is needed to fund infrastructure and climate investments.

 

In response, two progressive Democratic lawmakers have authored legislation cracking down on tax evasion.

The new Internal Revenue Service figures compiled by Syracuse University researchers show that in the last eight years, there has been a 72 percent drop in the number of audits of those making more than $1 million. In all, 98 percent of those making more than $1 million did not face an audit last year.

 

There has also been a 55 percent drop in the number of audits of America's largest corporations. In 2012, almost all corporate giants were audited. In 2020, however, almost two thirds of those corporations were not subjected to audits.

 

   It's called the trickle up theory. It's actually working as intended. The payout to corporate executives from the Trump tax cuts has been $1.35 trillion so far, but we all get an extra $25 a paycheck too, so everyone can be happy.

[Dashinka 24,941]

14 minutes ago, Steeleballz said:

 

   It's called the trickle up theory. It's actually working as intended. The payout to corporate executives from the Trump tax cuts has been $1.35 trillion so far, but we all get an extra $25 a paycheck too, so everyone can be happy.

Payout?  So you are saying it is all the government's money, and they graciously sent it to rich people?

[Steeleballz 7,550]

Just now, Dashinka said:

Payout?  So you are saying it is all the government's money, and they graciously sent it to rich people?

 

  It wasn't ever the governments money but it didn't start out as corporations money either.

 

  Do you donate $1000 a year to your favorite corporation? If not, why are you so happy that the government took your money and did that for you? You didn't come out ahead.

[Nature Boy 2.0 8,386]

46 minutes ago, CanAm1980 said:

https://www.newsweek.com/government-just-admitted-it-doesnt-really-try-collect-rich-peoples-taxes-1577610

 

By some estimates, the wealthiest 1 percent of Americans manage to avoid paying about a quarter-trillion dollars of owed taxes every single year. Now, new government data show that audits of the super-rich and large corporations have hit a new low, leaving billions of dollars of uncollected taxes at precisely a moment when lawmakers say new revenue is needed to fund infrastructure and climate investments.

 

In response, two progressive Democratic lawmakers have authored legislation cracking down on tax evasion.

The new Internal Revenue Service figures compiled by Syracuse University researchers show that in the last eight years, there has been a 72 percent drop in the number of audits of those making more than $1 million. In all, 98 percent of those making more than $1 million did not face an audit last year.

 

There has also been a 55 percent drop in the number of audits of America's largest corporations. In 2012, almost all corporate giants were audited. In 2020, however, almost two thirds of those corporations were not subjected to audits.

Thank you biden

[Crtcl Rice Theory 2,432]

29 minutes ago, Dashinka said:

So why did the IRS reduce the audits?  Btw, I loved the glossed over math that shows a $400 billion budget boost over ten years to the IRS would bring in an additional $100 billion in revenue.  Not a very good return.  Other than that, the story was what would be expected.

I think you have a decimal point issue with the 400 billion. At 40 billion you would get 150%roi.

[Dashinka 24,941]

10 minutes ago, Steeleballz said:

 

  It wasn't ever the governments money but it didn't start out as corporations money either.

 

  Do you donate $1000 a year to your favorite corporation? If not, why are you so happy that the government took your money and did that for you? You didn't come out ahead.

A lot of folks donate their own money to corporations everyday when they buy their products or use their services.  Corporations do not pay taxes, their customers do at least to the point the corporation can stay in business.  All the increases in corporate taxes are just a hidden tax on the people paying corporations for products/services.  Now if you want to get into a discussion regarding corporate officers and their pay, that is a different discussion altogether.

[Dashinka 24,941]

10 minutes ago, CanAm1980 said:

I think you have a decimal point issue with the 400 billion. At 40 billion you would get 150%roi.

An increase in an annual budget of $40 billion is in fact an annual increase meaning the IRS gets the additional amount every year (i.e. not a one time increase).  The story said this will result in a net gain of $100 billion over ten years, so I normalized the budget increase accordingly.  The math is fairly simple.  I could also say on an annualized basis, a $40 billion budget increase results in $10 billion in increased revenue for one year.  Not a very good business case.

Edited March 22, 2021 by Dashinka

[Steeleballz 7,550]

Just now, Dashinka said:

A lot of folks donate their own money to corporations everyday when they buy their products or use their services.  Corporations do not pay taxes, their customers do at least to the point the corporation can stay in business.  All the increases in corporate taxes are just a hidden tax on the people paying corporations for products/services.  Now if you want to get into a discussion regarding corporate officers and their pay, that is a different discussion altogether.

 

  Buying a product is not a donation. Not for us anyway. Would make a nice write off, but the IRS says nope.

 

  The issue of corporate pay is related. Much more of the profit that corporations got from tax breaks goes to executives than it ever did in the past. You know back in the day (that MAGA was trying to recapture), wages were not stagnant like they are now, and those corporate profits actually did trickle down sometimes.

[Dashinka 24,941]

5 minutes ago, Steeleballz said:

 

  Buying a product is not a donation. Not for us anyway. Would make a nice write off, but the IRS says nope.

 

  The issue of corporate pay is related. Much more of the profit that corporations got from tax breaks goes to executives than it ever did in the past. You know back in the day (that MAGA was trying to recapture), wages were not stagnant like they are now, and those corporate profits actually did trickle down sometimes.

Well, buying a product is in fact a donation to Uncle Sam.  Getting the corporate tax rate on par with much of the rest of the world was sorely needed.  The business community is in fact mobile, and as some of the States face, companies will in fact move to a better business environment, but hey, tax corporations at 100% like the rich folks and see the debt grow even more.

[Steeleballz 7,550]

21 minutes ago, Dashinka said:

Well, buying a product is in fact a donation to Uncle Sam.  Getting the corporate tax rate on par with much of the rest of the world was sorely needed.  The business community is in fact mobile, and as some of the States face, companies will in fact move to a better business environment, but hey, tax corporations at 100% like the rich folks and see the debt grow even more.

 

  It is in combination with overhauling the tax code and getting rid of the loopholes. Without doing that, it's just another example of a half baked approach. Very few places in the industrialized world where private corporations actually manage effective tax rates of 0%. 

 

  Another idiosyncrasy of the whole MAGA concept, was that corporate tax rates were actually 40+% back in the day. What made America great was that real earnings were higher. Kudo's to Trump for recreating the nostalgia, but you can't recreate that by redistributing wealth to the 1% and pushing the rest of the country closer to the poverty line. 

Edited March 22, 2021 by Steeleballz

[Dashinka 24,941]

22 minutes ago, Steeleballz said:

 

  It is in combination with overhauling the tax code and getting rid of the loopholes. Without doing that, it's just another example of a half baked approach. Very few places in the industrialized world where private corporations actually manage effective tax rates of 0%. 

 

  Another idiosyncrasy of the whole MAGA concept, was that corporate tax rates were actually 40+% back in the day. What made America great was that real earnings were higher. Kudo's to Trump for recreating the nostalgia, but you can't recreate that by redistributing wealth to the 1% and pushing the rest of the country closer to the poverty line. 

Yes, I know, it is much better to redistribute wealth to others.  None of it makes any sense at all, why not let people keep the money we earn, reduce the Feds to only take care of national defense and other minimal regulatory functions, and let people live their lives.  Instead, we get pyramid schemes such as Social Security, and lets raise the taxes extremely high on the people/corporations that are the most mobile.  That makes a lot of sense.

[Steeleballz 7,550]

1 hour ago, Dashinka said:

Yes, I know, it is much better to redistribute wealth to others.  None of it makes any sense at all, why not let people keep the money we earn, reduce the Feds to only take care of national defense and other minimal regulatory functions, and let people live their lives.  Instead, we get pyramid schemes such as Social Security, and lets raise the taxes extremely high on the people/corporations that are the most mobile.  That makes a lot of sense.

 

  Well right now, we are mostly redistributing it to the wealthiest 1% and have been for some time. The other 99% moves closer to the poverty line. I'm not sure why anyone thinks that is a good thing unless you are part of the 1%. 

[yuna628 9,752]

2 hours ago, Dashinka said:

Yes, I know, it is much better to redistribute wealth to others.  None of it makes any sense at all, why not let people keep the money we earn, reduce the Feds to only take care of national defense and other minimal regulatory functions, and let people live their lives.  Instead, we get pyramid schemes such as Social Security, and lets raise the taxes extremely high on the people/corporations that are the most mobile.  That makes a lot of sense.

And yet all the old people that complain about government spending and socialism that I know never want anyone to pry Social Security out of their hands....