IRS
The figure above summarizes the impact of the deep cuts to IRS funding since 2010:[1]
Critical Analysis
According to the data from the visual above, what has happened to the IRS enforcement budget since 2010?
According to the data from the visual above, what has happened to the IRS audit rate for millionaires since 2010?
The IRS mission is to provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and to enforce the law with integrity and fairness to all. The IRS is organized to carry out the responsibilities of the Treasury secretary per Internal Revenue Code (IRC) Section 7801. The IRS was created based on the secretary's authority to administer and enforce the internal revenue laws. Explain how the cuts to IRS funding and administration as outlined in the visual above, impact it’s ability to carry out its mission.
According to the non-partisan Center for Budget and Policy Priorities, each year an estimated $441 billion in federal taxes owed is not paid voluntarily and on time. Explain how the data from the visual above about the cuts to IRS enforcement have led to this almost half a trillion dollar annual decrease in tax revenue.
Imagine the U.S. did not have an IRS and could not collect taxes. How would that impact the ability of the government to function?
IRS Commissioners are nominated by the president and confirmed by the Senate. The IRS Commissioner and the IRS Chief Counsel are the only political appointees within the agency. All other employees are career civil servants. Since the IRS Restructuring and Reform Act of 1998, commissioners have been appointed to a five-year term. In what way does political control over the IRS (and other agencies and departments of the government) increase the power of the people?
The visual above was part of the testimony of Chye-Ching Huang, Senior Director for Economic Policy, (CBPP) before the House Ways and Means Committee. The Committee on Ways and Means is the oldest committee of the United States Congress, and is the chief tax-writing committee in the House of Representatives. Why would the House Ways and Means Committee hear testimony about IRS revenue collection?
The Committee derives a large share of its jurisdiction from Article I, Section VII of the U.S. Constitution which declares, “All Bills for raising Revenue shall originate in the House of Representatives.” In addition, Article I, Section 8, of the Constitution of the United States provides the following: The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and…To borrow Money on the credit of the United States. Did the Congress have the power to raise money through national taxes under the Articles of Confederation?
According to the data from the visual below, what type of taxpayers benefit the most from lax IRS enforcement?*
Imagine you were in charge of the budget for the IRS. Based on the visual below, how would you change the current IRS budget?
Learning Extension
Read more of the testimony from the senior Director for Economic Policy at the Center for Budget and Policy Priorities.
Action Extension
Contact a member of the House Ways and Means Committee and share your opinion about funding the IRS.
Visual Extension*
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