Janet Yellen, the Secretary of Treasury, issued an order to the Internal Revenue Service to not use resources earmarked by Democrats for new health and climate legislation.
The letter. sent to Charles Rettig, the IRS Commissioner comes as Republicans are under attack, saying $80 billion in tax cuts in the coming decade will be delivered to the IRS and lead to greater focus on the middle class and small businesses. The administration under Biden has reiterated that the IRS will focus on strengthening enforcement efforts against large corporations and high-paid taxpayers, rather than households with annual incomes standing at below $400,000.
Janet Yellen Writes To Rettig
Janet Yellen wrote: “It is not recommended to use additional resources, especially new hires or auditors, to increase the share of small businesses or households that are audited less than $400,000 compared to previous levels.” She further continues: “Despite the misinformation of those who oppose this measure, it does not make small businesses or families with annual incomes of $400,000 or less likely to be audited.”
Janet Yellen said law enforcement would “instead focus on high levels of non-compliance.”
The new funding for the IRS is expected to generate $124bn as bonus tax revenue during the next decade, a vital method Democrats are trying to reduce prescription drug rebates and reduce the cost of climate change mitigation initiatives.
The Democratic-controlled House has yet to approve a bill that was approved Sunday in the Senate after months of difficult negotiations. Democrats, with a majority of 50 seats in the Senate, used a particular process without a filibuster to pass $750 billion in health, climate, and tax without any votes from the Republicans.
