The New Code for “Taxing the Rich”
So the current illegitimate regime is promising not to sick the IRS goons on tax payers making less than $400,000 per year. Historically IRS audits targeted easy pickings; those who make less than $200,000. This article is a quick picture of the stupid tax audit lies and other IRS promises not kept. This is just another big government trick to try and make Americans believe the lying administration campaign promise to tax the rich and leave the rest of us alone.
According to recent MIT and other left coast institutions If you were black, or Mexican and made less than $200,000 you were prime targets for tax audits. Why? Because, historically, those were the poorest and least defensible populations of the taxpaying pool. IRS agents are just people too and like all of the other near useless agencies in our omnibus ridden government; bureaucrats get promoted by finding violators and clearing paperwork off of their desks.
Tax Code is Supposed to Be Confusing
Never mind that the tax code is most confusing set of nonsense on the planet. Never mind that takes 3,906 pages of print so small you need two magnified glasses to read the 9834 Tax Code Sections it contains. Of course the poorest, least educated or at least the least familiar with the tax laws would be the targets. If you are rich you don’t need to think, you just hire CPAs who can hide things for you and better lawyers who can defend the CPA mistakes.
Well now the leader of the omni government goons says as he promised he will now go after the rich tax cheaters, but I don’t buy it. First of all the definition of rich is never specific especially when you assign a number to it.
Total Positive Income
The regime’s pledge to go after the rich is a pledge to go after taxpayers with “total positive income” in excess of $400,000, and the “historical level”. By the way that’s code for audit rates on 2018 tax returns. Has the IRS even finished processing the 2018 returns yet? The treasury released a 24-page compliance agenda stating that audits would not increase for taxpayers with income below $400,000 relative to “recent” levels. You see the double speak has already started.
With current inflation rates $400k back then purchasing power if probably not much greater the $200k is now. So does that mean $200k earners are the New rich. The government has always played this game. What’s more is there government definition of what is counted as income.
Increasing the Risk of Audits
“Total positive income” increases the risk of audit for a larger share of the “wealthy” population by more than other measures used in the past, such as adjusted gross income. Are they going to count the income amounts before losses and deductions – I’m betting yes they are going to do so. If not at first, once they realize they aren’t generating enough to fund their social credit utopia, they will in the near future.
All Tax Experiments Trickle Down to the Rest of Us
All tax experiments trickle down to the poor and they always will because it’s a myth that the rich do not pay their fair share and everybody knows that it the truth. And like all tax schemes the real targets are small business owners. If you are in real estate and earn gross receipts of $1 million but have $601,000 in losses, I doubt you will not be on the goon radar. If you ar ea business partner and make $500,000 but claim deductions in excess of $100,000 – you can bet you will be an audit target.
You’ll have to use your own imagination to think of other crazy scenarios, but it should not be hard. Anytime there’s a hard definition in the IRS code, there’s a way to breach it and according to our tax laws we are supposed to find ways to pay the least amount of taxes as possible. But that is never enough to keep the goons away.
Life is unfair, but all tax schemes are evil.
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