Michael Lee The founder of the Strategy, Michael Lee, provides insight into how Biden’s economic policy can impact the economy and markets.
U.S. Treasury Secretary Janet Yellen said on Wednesday that if the IRS were properly funded and therefore able to crack down on tax fraud, the US would be able to raise more revenue without raising taxes.
“The tax gap is huge and I think we would have a fairer tax system and collect more tax revenue without the need to raise fees if we had the IRS resources properly to be able to resolve this problem,” said Yellen during a statement before the Senate.
Yellen noted that the tax difference – known as the difference between what the IRS is owed and what it will charge – is estimated at $ 7.5 trillion over the next decade.
One of the lawmakers at the hearing mentioned that $ 570 billion owed last year alone has not been paid.
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The IRS has fought both a decline in personnel and a decline in resources. In the collection group, specifically, there was a 19% decline in workers between fiscal 2013 and fiscal 2018. It lost half of its revenue offices, the agency said, and about a third of its revenue force. general work in the last decade.
Financing in fiscal 2018 was $ 11.4 billion, down from $ 12.15 billion in 2010.
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In order to increase revenue to finance future initiatives, including a boost in infrastructure and clean energy, as well as a people-focused domestic program effort, Biden proposed raising rates for individuals and families earning more than $ 400,000 by 37% to 39.6%.
He also proposed to increase the corporate tax rate from 21% to 28%. These rates were lowered in 2017 with former President Trump’s Tax and Employment Reductions Act.
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Yellen said he believes it is appropriate to increase the corporate tax rate that Biden has proposed, but added that the government needs to be concerned and be aware of the competitiveness of American companies.