IRS needs funds
Complaints about the Internal Revenue Service are constant and unrelenting. The IRS does have its problems. Enforcement is a necessary part of any tax system. Do we really believe that all taxpayers would pay their full taxes as required by various federal codes and regulations without an enforcement agency?
For better understanding of the difficulties we should look at congressional appropriations in recent years. Since 2010 Congress has reduced IRS appropriations by 14 percent after inflation. These reductions have resulted in reduced staff, fewer taxpayer audits and poor service.
It is estimated that $385 billion of tax revenue is unreported or evaded. In the last four years enforcement efforts have been reduced by $4 billion. It is estimated that for every dollar spent on enforcement tax revenue increase by $6. Collection of the $385 billion would substantially reduce our deficit.
Despite these facts, House Republicans have proposed reducing IRS funding in 2015 by $10.9 billion. President Obama’s budget would increase their spending by $1.2 billion. We need to fund the IRS so it can do its job of collecting money to pay for essential government services.