The spittle flecked anger from conservatives over increased IRS funding to catch rich tax cheats never ceases to astonish me. I can understand this kind of anger over big hot-button subjects like abortion or the border, but IRS funding? Here is Dominic Pino in National Review, who is apoplectic over Biden's recent announcement that the IRS collected an extra $500 million in the first year after the new funding was passed:
This [infographic] just shows how nonsensical the emphasis on extra IRS funding always was.
First, the Biden administration wanted to raise $400 billion over the next ten years with greater tax enforcement.... Now it’s supposed to be some great victory that, over a year after the IRS expansion was passed into law, they’ve raised $500 million.
Second, the purpose of extra revenue from the IRS was supposed to be to balance out the extra spending from the so-called Inflation Reduction Act. But the administration’s post is all about how it wants to spend the extra $500 million. Democrats want to use the money to expand government even further, not reduce the deficit.
As I have noted before, it’s important to remember that IRS employees are some of the only federal workers who are unionized. When in power, perhaps the primary purpose of the Democratic Party as an organization is to direct taxpayer money to unionized government employees. The influx of cash for the IRS will expand membership in the National Treasury Employees Union, which donates almost entirely to Democrats. It was never primarily about the extra revenue.
Let's take a breath. First, President Biden estimated the increased funding would bring in $320 billion over ten years. That's the number.
Second, only 0.8% of the new funding has been spent, and increased enforcement only got seriously underway three months ago. It's hardly surprising that only 0.15% of the expected tax haul has been collected so far.
Third, the infographic is just an aid to understanding, like saying you could stack four million football fields from here to the moon. Dumb, maybe, but otherwise meaningless.
Fourth, NTEU (a labor union that represents 31 federal agencies including the IRS) contributes a grand total of about $800,000 to Democrats each campaign cycle. Realistically, the increase in IRS employees will probably produce an approximately 16% boost in NTEU members,¹ which suggests a similar increase in contributions. That comes to about $100,000 by 2033. This is highly unlikely to have been front of mind when the Inflation Reduction Act was passed.
The IRS plans to use part of its newfound funding to hire several thousand high-end compliance officers, the kind who have the background to go after complicated high-dollar tax returns. There are a variety of estimates of how much this will bring in, but it's notable that literally everyone agrees it will be a net positive. The rest of the funding will be used to man helplines, produce a free online tax filing app, and update the agency's ancient computer systems. Even for Republicans, it's remarkable that they aren't just opposed to this, they are rabidly, madly opposed to it.
¹The net increase in IRS employees from the IRA funding comes to about 37,000. The IRS unionization rate is around 66%, which means NTEU will probably add 24,000 members to its current 150,000. That's a 16% increase.