The White House can raise taxes on the wealthy without touching the tax code at all | WHAT REALLY HAPPENED X-Frame-Options: SAMEORIGIN

The White House can raise taxes on the wealthy without touching the tax code at all

President Joe Biden wants to raise taxes on the wealthy to pay for some of his policy proposals. Part of the way he can go about that doesn’t entail touching the tax system at all — instead, he’d just have to put the IRS to work chasing down rich people to make sure they’re paying taxes they already owe.

The New York Times first reported on Tuesday that the White House plans to seek $80 billion over the next 10 years to increase IRS enforcement and beef up the agency as part of Biden’s plan to pay for his American Families Plan, the next phase of his economic recovery agenda. The idea is to try to close the “tax gap” — the difference between what the IRS collects in taxes and what is actually owed — which IRS chief Charles Rettig recently said at a Senate Finance Committee hearing could amount to $1 trillion a year. “We do get outgunned, there’s no other way to say it,” he said. Research indicates that more than a third of all unpaid federal income taxes come from the top 1 percent of taxpayers.

According to the Times, White House officials don’t think upping tax enforcement would totally close that gap — but the difference would still be substantial. They believe it could raise at least $700 billion over the course of the next decade.

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