The IRS plan to raid tip jars

When President Joe Biden signed the Inflation Reduction Act last year, the White House touted how the bill’s $80 billion in new funding for the IRS would “make our tax code fairer by cracking down on millionaires, billionaires, and corporations that evade their obligations.”

Advertisement

It now appears that some of those resources—and some of the coming crackdown on tax evasion—will, quite predictably, be aimed at individuals earning considerably less. …

That the IRS is going to use at least some of its new resources to go after workers’ tips shouldn’t come as too much of a surprise—despite all of the promises from Biden and top IRS officials about how no one earning less than $400,000 would be targeted. As Reason’s Liz Wolfe reported in January, low-income taxpayers have always been the ones most likely to get hassled by IRS audits.

[It’s not a surprise, and neither is all of the white-knighting done by mainstream media outlets to obscure the obvious. The wealthy can afford to spend money on technical compliance, so the money that the IRS will get from the 87,000 new employees will mainly come from people who *can’t* afford it. That means the middle and working classes will get the business end of the audit shaft. — Ed]

Join the conversation as a VIP Member

Trending on HotAir Videos

Advertisement
Advertisement
Advertisement