IRS budget cuts cost $34.3B in lost revenue from big business
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IRS budget cuts cost $34.3B in lost revenue from big business
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Re: IRS budget cuts cost $34.3B in lost revenue from big business
#2I don't get why countries always under-invest in tax collection... as long as it's ROI positive, shouldn't budgets be getting increased?
Re: IRS budget cuts cost $34.3B in lost revenue from big business
#3The act of reducing the manpower of the IRS needed to enforce the laws may have a greater effect than all the tax cuts combined. If a business is fairly certain an audit isn't coming, their effective tax rate is whatever they want it to be.
Re: IRS budget cuts cost $34.3B in lost revenue from big business
#4Just one of the many sectors where budget cuts are going turn into huge losses down the line. The consequences of cutting healthcare and education are (going) to be much worse.
Re: IRS budget cuts cost $34.3B in lost revenue from big business
#5I don't get why countries always under-invest in tax collection... as long as it's ROI positive, shouldn't budgets be getting increased?
There's a faction of US politicians that are philosophically against (most) government and taxes. It's not about ROI, it's about their goals.
Re: IRS budget cuts cost $34.3B in lost revenue from big business
#6> IRS is auditing fewer tax returns from corporations because it has fewer people and resources available to identify potential errors and follow up on questionable tax returns
On one hand I do want businesses to pay their fair share. On the other hand I don't want to encourage massive tax agencies which must justify their numbers by auditing and harassing as many people as possible. Often small businesses that don't have to resources to defend themselves like large corporations. Very similar to police departments who justify their existence by writing tickets and have quotas set up to encourage cops to harass people. Does not seem much more than a shakedown.
Re: IRS budget cuts cost $34.3B in lost revenue from big business
#7I don't get why countries always under-invest in tax collection... as long as it's ROI positive, shouldn't budgets be getting increased?
Governments aren't 'rational actors' trying to maximize revenue. In US, 'starve the beast' [1] comes highly into play
Re: IRS budget cuts cost $34.3B in lost revenue from big business
#8I don't get why countries always under-invest in tax collection... as long as it's ROI positive, shouldn't budgets be getting increased?
When the executive branch doesn't agree with the law, one tool they have as a separate branch of government is to not enforce the law. In U.S. political history, President Andrew Jackson reportedly responded: "John Marshall has made his decision; now let him enforce it!" referring to the Supreme Court ruling in https://en.wikipedia.org/wiki/Worcester_v._Georgia.
Re: IRS budget cuts cost $34.3B in lost revenue from big business
#9The act of reducing the manpower of the IRS needed to enforce the laws may have a greater effect than all the tax cuts combined. If a business is fairly certain an audit isn't coming, their effective tax rate is whatever they want it to be.
Exactly, considering the penalties are just paying whatever is owed anyway, perhaps plus a few minor interest penalties. They make more the fines and interest combined by a long shot just by deploying the saved funds elsewhere.
Re: IRS budget cuts cost $34.3B in lost revenue from big business
#10I don't get why countries always under-invest in tax collection... as long as it's ROI positive, shouldn't budgets be getting increased?
George: Still don't know how you can call lunch with me a business expense?
Elaine: What do you think of the catalog?
George: I think it stinks.
Elaine: There, we just talked business.
* Imagine the IRS debating grey area scenarios like this against financial teams trained to argue deductions. The ROI quickly becomes a sewer drain.