And I would estimate 30% of people using tax shelters are underpaying their taxes. If there's profitable work to do for tax auditors, hire more auditors and cover both problems.
replyEven if you change the view to it's mostly the poor who are the tax scammers it doesn't degrade the counterpoints that these auditors were by far mostly going after the middle class and poor -- you're just asserting the poors are *disproportionately tax cheats that perhaps deserve it.
reply*edit: since my words were take in bad faith
They wrote a program years ago to data match EITC, little to no extra manpower from the IRS is needed, that is the point.
replyI think you're strawmanning a bit. They're not saying poor people are tax cheats, just that tax cheats tend to be poor. This makes sense for the same reasons other types of crime are also associated with poverty. This is not to say that wealthy people do not also evade taxes, but they do so in ways that are harder to catch and prosecute. You're implying that going after poor people is some sort of classist discrimination but I think it's far more likely that there are good reasons for it.
replyOr just that there are more poor people. Say 10% of all people are tax cheats, evenly across income. The top 1% who are the rich is much smaller than the bottom 50% who are the poor. So in absolute numbers there will be far more poor tax cheats than wealthy. Even if 100% of the wealthy are tax cheats, that still ends up being fewer wealthy tax cheats than poor tax cheats. Anything involving absolute numbers of audits is going to be skewed to show more happening to the poor, because there are so many more poor people than rich people.
replyLast I checked it's way closer to 28% than 48% of people that have earned income of at least $1 (thus EITC) and total income less than $25k -- which fall under the bucket of 48% of audits were for those with EITC and income under 25k. They are definitely disproportionately going after the poorest workers.
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replyam i missing something, or is the statistic that is used to pinpoint someone as poor, is the same statistic that is gamed here? Namely the amount of income that a person declares to the IRS?
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