Friday, April 29, 2011
Political parties pass legislation to benefit their supporters
Which makes the answer to the question, why is the Republican/Teabagger Party trying to defund IRS tax enforcement.
The U.S. government loses around $300 billion in revenue each year because of tax cheats, some of whom hide their earnings in offshore accounts or disguise them using complicated business structures, according to the Internal Revenue Service. Since 2001, tax evasion has cost as much as the wars in Iraq and Afghanistan, the Bush tax cuts and the 2009 stimulus combined, according to the financial-services analysis firm The Motley Fool.This is a rather long post to get to the obvious answer. The supporters of the Republican/Teabagger Party are a bunch of tax dodgers and cheats. While the Party hopes one day to eliminate taxes for their best buds, until then they can evade and cheat all they want with the Orange Boner's blessing.
In February, the Obama administration requested $339.3 million in additional funding for the Internal Revenue Service in 2012 to chase this costly tax evasion. According to the IRS, that extra funding would be paid back twice over with the additional revenue brought in through enforcement.
Most outside economists agree.
"There is no question that the IRS agents are able to produce enough extra revenue to be a good return on that investment," said Wayne Angell, a conservative economist who is a former governor of the Federal Reserve Board and has previously worked for Bear Stearns.
Yet instead of supporting increased enforcement, the GOP has been trying to cut IRS funding. In March, the House GOP sought to strip $600 million from the IRS budget as part of the continuing budget resolution. IRS commissioner Douglas Shulman told a house subcommittee those cuts would cost the government $4 billion in lost revenue. The final budget deal left the tax collection agency's annualized budget unchanged at $12.1 billion, $486 million less than the Obama administration had requested.
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