Tuesday, May 23, 2017
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4 reasons why Trump’s plan to strip the IRS is incredibly dumb

4 reasons why Trump’s plan to strip the IRS is incredibly dumb

Donald Trump hates the IRS and has spent years battling it.

| Op-Ed
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Donald Trump is proposing a 14.1 percent cut in the I.R.S.’s budget next year. This is incredibly dumb, for four reasons:

  1. It won’t save money. To the contrary, this move worsens the budget deficit. That’s because every dollar spent by the IRS to collect taxes generates $4 in unpaid taxes.
  2. It worsens the federal budget deficit. The current estimate of unpaid taxes per year is almost as large as the federal government’s annual budget deficit.
  3. It widens inequality. Since most IRS audits are of high-income people, the real beneficiaries of Trump’s move are the wealthy, more of whom will now be able to skirt their duty to pay taxes.
  4. The IRS is already understaffed. The number of individual tax return audits fell last year to its lowest level since 2004, and enforcement levels were already down by nearly 30 percent from 2010.

Donald Trump hates the IRS and has spent years battling it. There’s reason to think he doesn’t even want to pay his own taxes. But this is no reason to explode the Federal Budget Deficit and give another windfall to the rich.

This article was originally posted on Robert Reich’s blog.

Stop tax breaks for the rich! Create a new tax system that doesn’t favor the wealthy:




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Robert Reich
ROBERT B. REICH, Chancellor’s Professor of Public Policy at the University of California at Berkeley and Senior Fellow at the Blum Center for Developing Economies, was Secretary of Labor in the Clinton administration. Time Magazine named him one of the ten most effective cabinet secretaries of the twentieth century. He has written fourteen books, including the best sellers “Aftershock, “The Work of Nations," and"Beyond Outrage." He is also a founding editor of the American Prospect magazine and chairman of Common Cause. His film, INEQUALITY FOR ALL is available on Netflix, iTunes, Amazon. His new book, "SAVING CAPITALISM: For the Many, Not the Few" is out 9/29.

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