Tax loopholes have been plaguing society for decades, to the exclusive benefit of the super-rich. Missing out on all of that tax revenue in circulation only puts the general public farther behind. Around 49 billion is lost to the wealthy’s finesse annually. (That’s enough money to stave off world hunger for a little more than 7 years.) Public works projects and public services like police departments and public school systems, however, are what take the hit. They are left without the funding that they could have. Change might be attainable if the people came together in protest of what is happening, but the fact of the matter is that the general public is disinterested at best in this topic. The best chance for progress to be made is through the government agency created for this exact purpose, the Internal Revenue Service. The IRS is currently unable to respond to the abuse of tax loopholes by placing any significant pressure on Congress or the underreporting of income due to low funding and manpower. Increased funding for the IRS would give the agency more of a basis to react to these issues, subsequently moving the wealthy’s one-sided balance of who pays the most taxes back towards the middle. A change must be made in the agency’s budget in order to give it the ability to correct the wrongs in taxation that occur every year. More resources must be allocated to the IRS’s Criminal Justice department, or even create a new department dedicated specifically to this issue at hand.

A solution to the issue of the taxation imbalance problem, where the wealthy pay significantly less tax than other economic groups, is necessary. While other methods have been discussed, the most sensible option is allocating more funds to the IRS. This organization is built specifically for this purpose and is capable of obtaining funds that have been hidden away and unreported. Funding the IRS would increase the government’s income and balance out the disproportionalities between the wealthy and middle class. Because the IRS is not properly funded, billions of dollars in tax revenue are lost, which is a substantial amount that would shift the balance heavily. The average American only stands to benefit from this solution.

According to “Senators Press Yellen to Boost IRS Funding” by Melanie Waddell, If 80 billion was invested into the IRS, it would raise 2.3 trillion extra funds over the next two decades, primarily from better enforcement of taxation on wealthy taxpayers and large corporations according to the US Treasury. Increased funding for the IRS was a part of Joe Biden’s Build Back Better Act that has not seen any success in Congress. The difficulty of getting more funds allocated to the IRS with congressional approval is quite a monumental task. Many Congressmen and congresswomen are lobbied by the wealthy or have a lot of wealthy friends, or maybe are wealthy themselves. If funding the IRS means that their friends or even themselves are going to lose their money, they would never pass any act such as the Build Back Better act. After all, Congress is responsible for our rule of law, why would they use their power to weaken themselves?

While it is true that nobody wants to fill out their forms come tax time, the IRS is a valuable resource to the public. Filling out your forms is a somewhat arduous process. Many would call the IRS to assist with any difficulties in filing their taxes but have recently been met with voice answering machines. There have also been, frustratingly, many delays in receiving tax returns. As noted in “Senators Press Yellen to Boost IRS Funding” by Melanie Waddell, IRS staffing has decreased by 22 percent, and the number of tax filers has increased by 14 percent. Only 1 in 9 calls to the IRS are ever answered. If an agency cannot handle its own basic functions, it is not in the right condition to attempt to tackle the 1 percent’s vice grip on the tax code. The IRS is completely aware of what is occurring but lacks the resources to respond.

The article “Eliminating Tax Loopholes That Benefit Corporations And Wealthy Individuals” goes into detail about the history found behind the race to pay fewer taxes between the extremely wealthy and the middle class. As it seems, the middle class is much less interested in taxes than the wealthy. Presumably because the wealthy have a lot more to gain from using tax loopholes and a lot more accessible methods, they take advantage much more. With wealth comes power and influence. The upper class is able to influence government policies and such for their gain, leading to everyone else footing the bill. Other factors have also skewed this “race” in the wealthy’s favor, such as the weakening of workers’ unions. The solution is to turn to the IRS, which could be the answer to stop the wealthy from using tax loopholes. If more revenue is in play from the rich, the pinch would be significantly less for the middle class. 

An attempt of the middle and lower class to stop this is very necessary, but because of the complete lack of interest in the topic, however, very little is being done at the moment. Wealthy people have much more to gain from the use of tax loopholes, and they have the power and influence to sway lawmakers into passing legislation that benefits their agenda. With our many voices and a collective effort, we can begin a change for the better. The IRS can become our voice and work to improve this situation given the proper amount of resources, and we must do what we can to see that that happens.