Once again we are faced with political drama and controversial policies, something most of us have grown used to over the past several years.
In early August, the “Inflation Reduction Act” was passed. This bill includes a $300 million subsidy to the renewable energy industry, institutes a price ceiling on certain medicines and creates a 15% minimum tax on corporations.
In addition to this, $80 million is allocated to the IRS for hiring purposes. This does not mean the IRS will increase their current workforce by the infamous “87,000 agents”, but it does mean they may grow substantially. Many of those hired will replace retiring employees, and the hiring process overall will take place over several years, not immediately. This bill will not result in the immediate doubling of the IRS.
Others claim this bill will only effect those making over $400,000 annually. This 755-page encyclopedia of a bill does state that “nothing in this section is intended to increase taxes on any taxpayer or small business with a taxable income below $400,000” (Part 3, page 43, line 6).
This is a cleverly worded distraction. This section of the bill is addressing the funding of the IRS and changes nothing in the tax code—by stating that they will not increase taxes they imply that they will not increase pressure.
The additional funding will enable the IRS to increase audits and other financial oversight, primarily in the southern half of the country. In addition to the distracting language, the use of the word ‘intent’ is telling as it has no real weight. Intentionality does not change whether those below $400,000 are actually audited or not.
Per usual, the policies passed in Washington are shrouded in mystery and hyperbole from both sides of the aisle. While studying here at ETSU, we each have the duty to avoid being caught in the political manipulation and stand for truth and reason.
