Armstrong Economics Blog/The Hunt for Taxes Re-Posted Aug 10, 2022 by Martin Armstrong
The Inflation Reduction Act will waste $430 billion and will do absolutely nothing to curb inflation. Around $300 billion will be spent on climate change initiatives. Clearly, that is not going to curb inflation, and paying farmers incentives for reducing emissions still does not change the fact that the current methods are the only way to produce food on a mass scale, no less during a global shortage.
One piece of legislation passed with this bill will embolden the International Revenue Services (IRS) with 87,000 additional workers. We live in a nation where the government takes a cut of our earnings and assets and then asks us to pay them more. How much more? Depends! If you miscalculate anything, you’ll wind up with fees or jail time.
Sen. Ted Cruz (R-TX) explained that the IRS is not adding tens of thousands of agents to target the big bad 1%. “I guarantee you citizens in every one of our states, if you ask them, ‘What do they want?’ they don’t want 87,000 new IRS agents. And they’re not being created to audit billionaires or giant corporations. They’re being created to audit you,” Cruz stated. The government is desperately hunting for any money they can find at our expense.
All Democratic Senators voted in favor of this bill under the guise that it would target the rich. “This will give us the chance to raise the revenue from wealthy tax cheats who are getting out of paying what they owe,” said Senate Finance Committee Chairman Ron Wyden (D-Ore). RS Commissioner Charles P. Rettig lied and said households earning under $400,000 would not be targeted. Yet, the Treasury Department expects the IRS to take away $400 billion in additional taxes over the next decade. In the same breath, the bill will multiply the agency’s budget by nearly six times at the cost of $80 billion.
The House Ways and Means Committee estimates that there will be an additional 1.2 million audits each year, and around 700,000 of those audits will investigate those earning under $75,000. “Democrats want to make the IRS larger than the Pentagon, the State Department, the FBI, and the Border Patrol combined,” Cruz wrote. “That’s a terrible idea. We should abolish the IRS!”
People are financially hurting right now, and the Biden Administration’s plan is to punish small businesses and the middle class. Even far-left Bernie Sanders said that the Inflation Reduction Act would do little to bring down inflation, although he applauded the new corporate tax hike. The government is now acting like the mafia and shaking down citizens for every penny they can find.