Biden will allocate $80 billion to US tax officials

Biden plans to allocate an additional $80 billion to the Internal Revenue Service to more effectively levy taxes on wealthy citizens. According to NYP sources, thus the President of the United Statesplans to raise at least $700 billion over ten years Joe Biden

President Joe Biden will allocate an additional $80 billion to the Internal Revenue Service (IRS) as part of his economic program, which provides for the redistribution of part of the tax burden on the rich. This is reported by the New York Times and the New York Post.

The extra money and powers will help the Internal Revenue Service "increase the demands on wealthy Americans or business owners who may hide their income from the government," writes the NYT. According to the newspaper's source, Biden's plan provides for tax audits of all citizens whose income exceeds $400,000 a year.
According to NYP sources, in this way the US president plans to attract at least $700 billion to the budget over ten years. At the same time, the entire socio-economic program may cost the budget at least $1.5 trillion, the newspaper writes. In addition to increasing the Internal Revenue Service budget, the plan will include a universal preschool program, federal paid leave programs, affordable childcare, and free college education.

$80 billion for the IRS spread over ten years would be almost 70% more than the agency's total funding over the past decade.

To pay for the American Family Plan, the Biden administration also intends to raise the top marginal income tax rate for wealthy Americans from 23.8% to 39.6% (with a 43.4% rate when the national HEALTH insurance fee is added), according to BLOOMBERG. Medicare) and increase capital gains tax rates for those earning more than $1 million a year.

The White House has regularly stressed that Biden's proposed tax hike will only affect a small number of people. "This change will only apply to three-tenths of a percent of taxpayers, <...> that's about 500,000 households in the country," said Brian Deese, DIRECTOR of the National Economic Council.

Biden unveils $2 trillion infrastructure development plan Politics

More than a quarter of unpaid taxes in the United States are attributable to the top 1% of workers, and more than 20% to 0.5%, according to last year's Treasury Department report.

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At the same time, according to Politico, the IRS staff has been declining for many years: if in 1992 it consisted of 117 thousand employees, then in 2021 it amounted to 78,661 people (the US population has grown by almost 30% since 1992).

In the US, inflation has been on the rise since the start of the covid-19 pandemic , but it has accelerated to record highs in recent months. So, in March, the consumer price index - the main indicator of inflation in the United States - rose by 8.5%, which was the highest level since 1981. Consumer prices soared 9.1% in June, hitting a nearly 41-year high. After that, inflation slowed down.

To curb inflation, the Federal Reserve System (FRS), which performs the functions of the US Central Bank, raised the key rate. The last time this happened at the end of July: then the rate was raised by 75 basis points - up to 2.25-2.5%.

In April 2021, Biden unveiled a $2 trillion global plan to upgrade U.S. infrastructure and industry. It provides for the allocation of $621 billion to modernize transport infrastructure, $400 billion to support the elderly and disabled, $300 billion to support the industrial sector, $213 billion to repair and build affordable housing, and $100 billion to develop broadband Internet networks.

“This is a once-in-a-generation investment in America <...>. In fact, this is the largest investment in jobs since World War II,” Biden said at the time. In his opinion, in this way Washington will be able to win the global competition with CHINA.