Please ensure Javascript is enabled for purposes of website accessibility
AP FACT CHECK: GOP Skews Budget Bill’s Impact on IRS, Taxes
News
By News
Published 3 years ago on
August 10, 2022

Share

 

Republican politicians and candidates are distorting how a major economic bill passed over the weekend by the Senate would reform the IRS and affect taxes for the middle class.

The “ Inflation Reduction Act,” which awaits a House vote after passing in the Senate on Sunday, would increase the ranks of the IRS, but it would not create a mob of armed auditors looking to harass middle-class taxpayers, as some Republicans are claiming.

While experts say corporate tax increases could indirectly burden people in the middle class, claims that they will face higher taxes are not supported by what is in the legislation.

A look at some of the claims about $740 billion package that emerged from a deal negotiated by Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Joe Manchin, D-W.Va.:

HOUSE MINORITY LEADER KEVIN MCCARTHY, R-CALIF.: “Do you make $75,000 or less? Democrats’ new army of 87,000 IRS agents will be coming for you — with 710,000 new audits for Americans who earn less than $75k.” – tweet Tuesday.

SEN. TED CRUZ, R-TEXAS: “The Manchin-Schumer bill will create 87,000 new IRS agents to target regular, everyday Americans.” — Friday tweet.

THE FACTS: That’s misleading. Last year, before the bill emerged, the Treasury Department had proposed a plan to hire roughly that many IRS employees over the next decade if it got the money. The IRS will be releasing final numbers for its hiring plans in the coming months, according to a Treasury official. But those employees will not all be hired at the same time, they will not all be auditors and many will be replacing employees who are expected to quit or retire, experts and officials say.

The IRS currently has about 80,000 employees, including clerical workers, customer service representatives, enforcement officials, and others. The agency has lost roughly 50,000 employees over the past five years due to attrition, according to the IRS. More than half of IRS employees who work in enforcement are currently eligible for retirement, said Natasha Sarin, the Treasury Department’s counselor for tax policy and implementation.

Budget cuts, mostly demanded by Republicans, have also diminished the ranks of enforcement staff, which fell roughly 30% since 2010 despite the fact that the filing population has increased. The IRS-related money in the Inflation Reduction Act is intended to boost efforts against high-end tax evasion, Sarin said.

The nearly $80 billion for the IRS in the bill will also pay for other improvements, such as revamping the agency’s technology, said Janet Holtzblatt, a senior fellow at the Tax Policy Center and former Treasury official.

The Treasury says it will hire experienced auditors and workers who will improve taxpayer services, and that audit rates for those earning less than $400,000 are not expected to rise in relation to historic norms.

So that’s a long way from hiring 87,000 “agents” to go after average people in the United States, as the GOP claims have it. In any case, the bill has no mandate to hire that many people.

___

REP. TROY NEHLS, R-TEXAS: “Americans asked for lower inflation and the Democrats gave us an armed IRS shadow army to spy on your bank accounts.” — Sunday tweet.

REP. MARJORIE TAYLOR GREENE. R-Ga.: “It’s going to hire 87,000 new IRS agents and it’s going to arm — as in guns, you know, Democrats are always upset about guns — 70,000 of these IRS agents.” — at the Conservative Political Action Conference, in an interview with the conservative Canadian news magazine The Post Millennial.

THE FACTS: That’s false. The bill will not create any such army, officials and experts say. Only some IRS employees who work on criminal investigations carry firearms as part of their work.

A division of the IRS called criminal investigation serves as the agency’s law enforcement branch. Its agents, who work on issues such as seizing illicit crypto currency and Russian oligarchs’ assets, carry weapons, Sarin said.

There were just more than 2,000 such special agents working at the IRS in 2021, according to agency documents. The branch will get money from the Inflation Reduction Act, but the bulk of the dollars will go toward other areas, according to Sarin.

The bill does not designate money specifically for a large number of armed IRS employees.

___

NEVADA SENATE CANDIDATE ADAM LAXALT, criticizing his opponent, Democrat Sen. Catherine Cortez Masto: “.@CortezMasto just voted to raise taxes for Nevadans making as low as $30k/year.” — Sunday tweet.

THE FACTS: Nothing in the bill raises taxes on people earning less than $400,000, contrary to Laxalt’s claims. There are no individual tax rate increases for anyone in the bill, experts say.

It’s possible, though, that the bill’s new corporate taxes, including a minimum 15% tax for large corporations, could cause indirect economic impacts. A report from the Joint Committee on Taxation said some people who make less than $400,000 might see such impacts.

“Economists are generally in agreement that the corporate income tax is borne not just by the businesses, but also by shareholders and by workers,” Holtzblatt said. “So that tax that gets imposed on the corporation, some of that might end up getting shifted to workers in the form of lower wages.”

Added Garrett Watson, a senior policy analyst at the Tax Foundation: “Distinguishing between whether lower after-tax incomes happen because of a direct tax hike or indirect incidence may be a distinction without a difference for many households.”

Nevertheless, supporters of the bill did not vote for tax increases on people earning $30,000, as Laxalt claimed.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Valley Crime Stoppers’ Most Wanted Person of the Day: Deanna Michelle Whitworth

DON'T MISS

2 More Attacks on Jews Heighten Concerns About Security in and Around US Synagogues

DON'T MISS

Mexican 4-Year-Old Is Granted Humanitarian Parole to Continue Receiving Lifesaving Care in US

DON'T MISS

Suspect Arrested in Connection With Deadly California Fertility Clinic Bombing

DON'T MISS

Wall Street Ticks Higher as Tech Boost Offsets Economic Worries

DON'T MISS

Machado and Padres Rally to Beat Giants in 10 Innings Again

DON'T MISS

Mexico to Announce ‘Measures’ Next Week if No Deal on US Metals Tariffs

DON'T MISS

Judge Lets Fresno Smoke Shop Rules Take Effect — for Now

DON'T MISS

NOAA ‘Fully Staffed’ With Forecasters, Scientists, US Commerce Secretary Says

DON'T MISS

Ukraine’s Zelenskyy Suggests Truce Until Meeting With Putin Can Be Arranged

UP NEXT

NOAA ‘Fully Staffed’ With Forecasters, Scientists, US Commerce Secretary Says

UP NEXT

Trump’s Big Bill Will Cut Taxes by $3.7T and Add $2.4T to Deficit, Budget Office Says

UP NEXT

Hegseth Orders the Name of Gay Rights Activist Harvey Milk Scrubbed From Navy Ship

UP NEXT

US Judge Dismisses California’s Tariff Lawsuit, Teeing up Appeal

UP NEXT

Young Democrats Offer Lessons for Their Leaders at Party Convention

UP NEXT

Fellow Clovis Councilmember, Public Bash Pearce Over Trans Athlete

UP NEXT

Musk Calls Trump’s Big Beautiful Bill ‘a Disgusting Abomination’

UP NEXT

US Tariffs Could Put Air Safety at Risk, Aerospace and Airline Industries Warn

UP NEXT

Trump to Sign Order Doubling Metals Tariffs, White House Says

UP NEXT

Trump Threatens California With Fines After Trans Athlete Wins Girls’ State Titles

Suspect Arrested in Connection With Deadly California Fertility Clinic Bombing

25 minutes ago

Wall Street Ticks Higher as Tech Boost Offsets Economic Worries

43 minutes ago

Machado and Padres Rally to Beat Giants in 10 Innings Again

45 minutes ago

Mexico to Announce ‘Measures’ Next Week if No Deal on US Metals Tariffs

49 minutes ago

Judge Lets Fresno Smoke Shop Rules Take Effect — for Now

49 minutes ago

NOAA ‘Fully Staffed’ With Forecasters, Scientists, US Commerce Secretary Says

57 minutes ago

Ukraine’s Zelenskyy Suggests Truce Until Meeting With Putin Can Be Arranged

1 hour ago

49ers Overhaul Defensive Line With Rookies and Bryce Huff After Disappointing Season

1 hour ago

Rams Pass Rusher Jared Verse Ready to Build on Strong Rookie Season

1 hour ago

Muncy’s 2 Homers and Freeman’s RBI Double Lift Dodgers Over Mets in 10 Innings

2 hours ago

Valley Crime Stoppers’ Most Wanted Person of the Day: Deanna Michelle Whitworth

June 4, 2025 Most Wanted Person of the Day Suspect Name: Deanna Michelle Whitworth Suspects Date of Birth: December 10, 1978 Physical Descri...

5 minutes ago

Deanna Michelle Whitworth is Valley Crime Stoppers' Most Wanted Person of the Day for June 4, 2025. (Valley Crimes Stoppers)
5 minutes ago

Valley Crime Stoppers’ Most Wanted Person of the Day: Deanna Michelle Whitworth

7 minutes ago

2 More Attacks on Jews Heighten Concerns About Security in and Around US Synagogues

15 minutes ago

Mexican 4-Year-Old Is Granted Humanitarian Parole to Continue Receiving Lifesaving Care in US

25 minutes ago

Suspect Arrested in Connection With Deadly California Fertility Clinic Bombing

43 minutes ago

Wall Street Ticks Higher as Tech Boost Offsets Economic Worries

45 minutes ago

Machado and Padres Rally to Beat Giants in 10 Innings Again

49 minutes ago

Mexico to Announce ‘Measures’ Next Week if No Deal on US Metals Tariffs

49 minutes ago

Judge Lets Fresno Smoke Shop Rules Take Effect — for Now

Help continue the work that gets you the news that matters most.

Search

Send this to a friend