Economy
Biden’s IRS ‘will have to target small and medium businesses because they won’t fight back’
“The IRS will have to target small and medium businesses because they won’t fight back” is a direct quote from Joe Hinchman, executive vice president at National Taxpayers Union Foundation. That is what the American people are up against, and President Joe Biden has just emboldened the sickness.
The Foreign Desk News reports that the Joint Committee on Taxation (JCT), a nonpartisan watchdog group has found “taxes will increase by $16.7 billion on American taxpayers earning less than $200,000—a nearly $17 billion tax targeted solidly at low and middle-income earners next year.”
Additionally, “at least half of all new tax revenue raised next year would come from those earning under $400,000, and by 2031, those earning below $400,000 are projected to bear as much as two-thirds of the burden of the additional tax revenue collected.”
Going after vulnerable, middle-class Americans is nothing new for the IRS. Hinchman also stated “The IRS says ‘We’re going after the rich’ but when you’re trying to raise that much money, the rich can only get you so far… The rich have their lawyers and fight it — that’s why the poor are easier to go after.”
Last year alone, the IRS audited “Americans earning less than $25,000 a year at five times the rate of other groups, according to a study by Syracuse University’s Transactional Records Access Clearinghouse (TRAC), a nonpartisan, nonprofit data research center.”
Analysis of the new spending for the IRS showed that Americans who earn less than $75,000 per year are slated to receive 60 percent of the additional tax audits. According to this analysis, the IRS would conduct more than 1.2 million additional annual audits of Americans’ tax returns.
The watchdog group also estimated that “between 78 and 90 percent of the estimated additional $200 billion the IRS will collect will come from small businesses making less than $200,000 annually.”
The IRS has insisted their target is higher income individuals, but, according to the JCT, “only 4-9 percent of additionally collected funds will come from businesses making north of $500,000 a year.”
Banque Pictet, the private banking arm of the Pictet Group based in Switzerland, has admitted to conspiring with U.S. taxpayers to hide billions of dollars from the Internal Revenue Service (IRS) in over 1,600 secret bank accounts. The Justice Department revealed on Monday that Banque Pictet has agreed to pay over $120 million in restitution to the U.S. Treasury as part of a settlement.
The bank’s involvement in the tax evasion scheme spanned from 2008 through 2014, during which it conspired with American taxpayer clients to conceal more than $5.6 billion of the approximately $20 billion in U.S. assets. This led to an evasion of around $50.6 million in U.S. taxes, according to prosecutors.
Of the $5.6 billion concealed, the funds were distributed across 1,637 accounts, implicating more than 40% of the total 3,736 private accounts owned by U.S. taxpayers held by the bank. Banque Pictet reportedly assisted its American clients in hiding their undeclared accounts through various means, including the formation and administration of offshore entities. Undeclared accounts were then maintained in the names of these entities on behalf of U.S. taxpayer clients.
Jim Lee, Chief of IRS Criminal Investigation, emphasized the importance of the case in sending a strong message to those attempting to hide assets and income offshore. Lee stated, “This case should provide a clear message to others who try to hide their assets and income offshore. Offshore tax evasion is a priority for IRS Criminal Investigation.”
The settlement underscores the ongoing efforts by U.S. authorities to combat tax evasion and sends a clear warning to financial institutions and individuals involved in such illicit activities. As regulatory scrutiny intensifies globally, financial institutions face increasing pressure to ensure compliance with international tax laws and prevent their involvement in tax evasion schemes.
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