Now that’s more like it. We complained yesterday when the President’s Office of Management and Budget took issue with the GOP bill to curb the $80 earmarked for the IRS. To remind you, we have Ari from NRO:
“With their first economic legislation of the new Congress, House Republicans are making clear that their top economic priority is to allow the rich and multi-billion dollar corporations to skip out on their taxes, while making life harder for ordinary, middle-class families that pay the taxes they owe,” the federal agency asserted in a statement Monday.
We said trying to defend the indefensible is a job for a partisan rather than a government entity. Even one that reports to the president. And this morning we see that Catherine Rampell (restricted access) is up to the job. Her post is entitled, “First Order Of Business For The GOP House? Defunding The (Tax) Police.”
Sidebar: Did you know Catherine’s dad is a CPA and she has a net worth of $1 million at age 37. Well, it looks like that post hasn’t ben updated and she is 38. We wonder what her dad thinks of her current post. End Sidebar.
We cannot find the post electronically. It is in the print version of our newspaper but it is not on their website and we cannot find it without restrictions. That means that we will be typing in quotes from Catherine’s post. We apologize in advance for any errors in our typing. End Sidebar.
Since we can’t find her previous posts we don’t know if she supports defunding the (real) police or not. We will start with the good part of Catherine’s post. About three-quarters of the way through she accepts that the GOP and almost everyone else has a point when “they say the administration has not adequately explained how it will ensure enforcement targets the well-heeled, rather than the working class.” She pleads guilty to having read the post we cited yesterday that the IRS is using the new funding to audit the Earned Income Credit that applies to low income folks. She argues that a miracle will happen and the IRS will concentrate on what Catherine thinks are high value targets like, as she specifically mentions, The Donald. She provides no evidence to suggest that “rich tax cheats” are a higher value target than numerous taxpayers in other classifications. The IRS is either foolish, a not unlikely possibility, or has come to a different conclusion based on the evidence. The reduction of the 1099 limit from $20,000 to $600 suggests that IRS wants lots of targets. We are always skeptical of miracles and even more so when they involve government agencies. We appreciate that Catherine has recognized the problem with ensuring IRS enforcement falls on the groups she wants to bully but she hasn’t come anywhere near solving it.
The real problem with Catherine’s attack on the GOP comes here:
Surely you’ve heard about the “army” 87,000 supposedly gun-toting IRS agents coming to terrorize you and your innocent working-class neighbors. [Delete paragraph break] None of that is true, not even the 87,000 figure (which refers to broader IRS hiring, not just the hiring of auditors and doesn’t subtract the many expected to retire over the next few years). But more to the point, the IRS desperately needs to increase enforcement, particularly against wealthy scofflaws. [Later she switches to rich tax cheats to describe the folks she wants the IRS to target.]
Let’s unpack what Catherine has said. We agree that 87,000 does not make an army. An army is much bigger. The “army” won’t all be gun-toting. IRS agents are divided into revenue and criminal investigation (CID). CID is much smaller and only those folks are gun-toting. Did anyone think that all 87,000 would be agents? Now we are perhaps the only one that has doubted in print that the IRS will be able to hire all the folks they want at the prices they expect to pay but there will be tens of thousands of new agents and, as Catherine later admits, some them will be terrorizing people like you and your neighbors. The retirement parenthetical is completely wrong. The positions and the dollars for the folks that retire are still in the budget. We expect that the IRS will reap the same windfall from retirements that the university did. Senior folks with high salaries retire and are replaced by junior folks with lower salaries. The difference is called salary savings and used to fund all manner of things.
Then there are the targets that Catherine wants to emphasize. A scofflaw or cheat is somebody that intentionally (or deliberately) doesn’t comply with the law. That is tax evasion:
Tax evasion is an illegal activity in which a person or entity deliberately avoids paying a true tax liability. Those caught evading taxes are generally subject to criminal charges and substantial penalties. To willfully fail to pay taxes is a federal offense under the Internal Revenue Service (IRS) tax code. [Error in the cite: that should be Internal Revenue Code.]
We hate to be the one to tell Catherine but she is going to need those gun-toters at CID to prosecute tax evasion. Revenue agents can’t do that. Tax evasion must be turned over to CID. Now perhaps Catherine is not being careful and just trying to generate clicks by playing the envy card but the differences among tax avoidance, tax disputes, and tax evasion are serious matters that can mean the difference between prison and not.
Other than the seemingly obvious points that not all of the 87,000 will be agents and only a few will be gun-toting Catherine is agreeing to all of the GOP’s complaints. She tried but it really doesn’t work.
Now the GOP House is supporting the fair tax law to eliminate the income tax and all of the enforcement problems.
Sidebar Two: We are not sure we would vote to replace the Internal Revenue Code with the fair tax law. When presented with a binary choice we might go fair tax law but we would prefer to debate it and come up with a better solution. End Sidebar Two.
Perhaps, contra to Catherine’s conclusion, the GOP does care about law and order. And we know the bills passed by the GOP House won’t become law because the Senate Democrats won’t vote for it and if they did the president wouldn’t sign it. Unless you work or want to work for the IRS, it seems like an easy choice on which side to support.