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.
Needs a Title and a References Section.
Grade of 50 until those “details” are included.
Feedback to follow.
Tax loopholes have been plaguing society
—This will work if your Definition argument has clearly established that “loopholes” are not just loose deductions but holes carved in the tax code specifically to benefit the super rich.
—It would help to have a number. Is there a source that declares, “in an average year, $48 Billion are lost to loopholes”? If you, you could follow that up with: “That’s enough to provide health insurance to everyone who can’t afford it” or something equally impressive. Your vague promises of public works are less impressive.
—You won’t find universal approval for a beefed-up IRS in general, blue. Most adult taxpayers DO NOT RELISH the idea of being audited, and THAT’S what comes to mind when we think of stronger enforcement. You might have to recommend more funding FOR A SPECIFIC DEPARTMENT that cracks down on super-rich tax EVADERS. But, remember, if they’re taking advantage of true loopholes (not just lying about their income), they’re not EVADING taxes; they’re just following the lax law to the letter.
A solution to the issue of the taxation;
—The IRS does not write the tax code. So counting on it to balance what different income brackets pay is impractical.
—Not sure you’re right about their ability to “close tax loopholes” either. If Congress writes a line into the tax code that says, “companies that do business the way BLUE does business can deduct the first $100,000 of their income before incurring tax,” the IRS can’t prosecute blue for taking advantage of that loophole.
The underfunding of the IRS
—Now, THAT’S a quote!: Where does it come from?
—Can you name a government program other than the military that has managed to get an $80B budget out of Congress? (Especially one designed to force wealthy Senators to pay more in taxes? 🙂 )
—You might want to be REALLY cynical and suggest that Congress could exempt itself from any such increased scrutiny or oversight.
If this revenue were obtained
—This paragraph is substantially a repetition of the claims you made in your Introduction. I’m not sure we’re persuaded by it until we know more about how the loopholes come into being and the causal chain that so far keeps them in existence.
While it is true that nobody wants
—This is a compelling paragraph.
—Remember, though, that bold clear claims are much more effective than Rhetorical Questions.
—I wonder if you’ve considered that a RADICAL SIMPLIFICATION of the tax code would be THE OTHER WAY to help the IRS do more with a smaller budget. It’s no more likely to occur than a wholesale closing of loopholes, but it would show you’ve been considering cause and effect.
The article “Eliminating Tax Loopholes
—The upper class is able to influence government policies
—Other factors include the weakening of workers’ unions
—To be honest, we’re just played for saps again and again. We vote for candidates that promise to lower taxes, but then we have no way to hold them accountable for their empty promises.
An attempt of the middle and lower class
—someone who has the allocation of funds for the IRS as part of their plan?
— As before, I’m thinking, “more money for the IRS doesn’t mean they’ll go after the big fish.”
You SOUND reasonable throughout, blue, which is very beneficial when SO MUCH of your argument depends on reasoning alone. You need stronger advocates who actually believe there is a PATH TO FAIRNESS we can follow. Is there no one in “the academy” who has mapped a plan more specific than giving the IRS more money?