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Biden Wants $80 Billion Boost For IRS To Crack Down Wealthy Tax Evaders

WASHINGTON, DC - NOVEMBER 13: U.S. Vice President Joseph Biden (R), joined by Ebola Response Coordinator Ron Klain (L), speaks during a meeting regarding Ebola at the Eisenhower Executive office building November 13, 2014 in Washington, D.C. Vice President Biden met with leaders of faith, humanitarian, and non-governmental organizations that are responding to the Ebola crisis in West Africa. (Photo: Getty)

President Joe Biden is requesting an increase for the Internal Revenue Service’s (IRS) budget of $80 billion to boost enforcement.

Biden’s measure would crackdown on tax evasion, mostly by high-earners, which economists believe could bring in $700 billion in lost revenue. The president explained the key details of his IRS proposal during an address to a joint session of Congress Wednesday.

In addition to the IRS budget increase, Biden’s proposals will also raise the top marginal tax rate from 37% to 39.6% and increase the capital gains tax for people with investments larger than $1 million from 20% to 39.6%. The Affordable Care Act surtax on capital gains would still remain in effect, making the full taxation on investments over $1 million 43.4%.

Another key tax change is the expected rise in corporate income tax from 21% to 28%. This singular change is anticipated to bring in more than $2 trillion over the next 15 years.

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By increasing the IRS’s budget and resources, Biden is making it more difficult for high-earners to avoid paying their taxes. Over the past two decades, the IRS’s budget has been repeatedly slashed, leaving the service understaffed and under-performing. The service’s reduced enforcement has also led to record levels of noncompliance especially among high-earners.

Brandon Mumei