Jan Lewis, Chairman of the Tax Executive Committee, explains in “Cavuto: Coast to Coast” how the new IRS funding could affect the middle class and small businesses.
After the Congressional Budget Office reported that 78% to 90% of income from new audits under the Cut Inflation Act will come from families earning less than $200,000 a year, freelancers and small business advocates say they They have expressed concern that they may become prime targets for the IRS.
Gabriela Hoffman, a freelancer and senior fellow at the Independent Women’s Forum, told Fox News Digital, “I think this is the easiest way for the Biden administration to punish people who work independently.
“It will hurt the smallest of us,” she continued.
Carol Roth, a former investment banker and author of “The War on Small Business,” also told Fox News Digital that the IRS’ targeting of small businesses began with last year’s American Rescue Plan.
“I would say that the richest people who are making $600 a year deals on Venmo or selling $600 on eBay aren’t billionaires,” says Roth. “It’s squarely middle class, and maybe lower class to some extent.”
Recent data from ZipRecruiter shows that, on average, the self-employed earn less than $70,000 a year. Fox Business confirmed last week that her bipartisan CBO notified lawmakers of an audit of accounts of taxpayers under $400,000. $20 billion in revenue amid the inflation-reducing bill signed by President Biden on Tuesday.
Yellen Tells IRS to Develop $80 Billion Overhaul Plan Within Six Months
Hoffman said the IRS’ recent $80 billion financing and bolstering of 87,000 additional agents “will impact many people” who work for themselves or small businesses.
“The burden will fall primarily on independent workers, independent contractors, freelancers and everyone who makes up the gig economy,” Hoffman said. We believe that we are not paying enough taxes even though we are
Carol Roth, author of ‘The War on Small Business’ and former investment banker, claims inflation-cutting laws that strengthen the IRS are meant to keep taxpayers ‘dependent on government’ . (Getty Images)
Roth has issued a “red flag” that IRS agents may specifically target e-commerce businesses.
“Anyone who sells online regardless of whether they have a business or not, especially when it’s a side business like this, people know they’re being flagged. I think you’ll be shocked to find out, and you probably won’t set a proper record,” Ross warned.
Freelancers pay a 15% self-employment tax on top of state and federal taxes, so Hoffman said the IRS tightening is being used as a tactic to “scare” Americans out of independent work. I think.
“They cannot try to regulate our existence. Maybe they make it more painful for us to work within such a framework. Employees. We cannot abandon this,” Hoffman said. [the IRS], it is to earn more revenue. ”
According to Roth, the enforcement of IRS staff by the Inflation Reduction Act is intended to keep Americans dependent on government.
“I think this is a continuation of an attempt to make people more dependent on government because, in reality, taxation is meant to influence behavior,” Ross said. “Thus, collecting more taxes from productive companies means we want those companies to underperform and make them perform worse.”
Both policy experts cited cases where the IRS could disagree or make honest mistakes, arguing that freelancers and small businesses simply don’t have the time or money to dispute charges.
“It may be easier to pay penalties and make it go away than have to spend a lot of time and effort fighting it,” said Ross. A lot of them are wearing multiple hats and they’re just taking productive time out of the business.”
Brandon Arnold, executive vice president of the National Taxpayers Union, claims more IRS audits and letters are coming for “all economic backgrounds.”
“I think we need to be more vigilant,” Hoffman warned. “
Both experts expressed further concern that the Biden administration is weaponizing the IRS to punish entrepreneurs and wealth creators.
“What can we continue to do to penalize this part of the economy that is not centralized, has no lobbying dollars, and does not benefit us?” It’s a vicious circle. You see this in all your actions and it’s intentional,” Ross said.
“As we all know, even in companies and small businesses, the people who create the business are making money, and it’s passed on to the people they hire,” Hoffman said. “I don’t think the Democrats are listening to voters’ concerns in this era of high inflation … They don’t tax, they don’t spend when people are struggling financially.”
Ross pointed out that the force behind tax policy is that it may be changed or repealed, but to politicians who act early and support independent workers and small businesses. It is up to voters to show their support for the
“When the next group that has some common sense is put in place, they’ll need to join in, and the first thing they need to do is abolish this,” Roth suggested. From there, they really need to focus on simplifying the tax code.The fact that we all have to do this crazy dance is insane.”
“I think what voters want is to keep this administration in check and not attack independent workers or even third-party vendors,” Hoffman added. Many people find that the interests of small businesses are not represented.”
Doug Holz Eakin, chairman of the American Forum Action and former congressional budget office chief, says the government’s prerogative is to seek more taxes.
Rep. Ellis Stefanik (RN.Y.), Henry Cuellar (Texas Democrat, California Republican), introduced legislation in July to protect the expansion of flexible and independent work. introduced to the house.
Jared Bernstein, a member of the White House Council of Economic Advisers, previously explained in America’s Newsroom how the IRS’s fundraising and staffing is aimed. Detecting tax evasion casesis not tax “avoidance”.
CLICK HERE TO GET FOX BUSINESS ON THE GO
“I think what confuses part of this discussion is that it ultimately reverses the long-term suspension of financial support. tax cuts and won’t increase audits by an iota,” Bernstein said.
Bernstein told co-hosts Bill Hemmer and Dana Perino, “The Control Inflation Act is what forces us to pay taxes for the richest taxpayers.” I don’t think anyone, including people, would dispute that claim.”
Read more about FOX Business
Hilary Vaughan of FOX Business contributed to this report.
