[…] over the last 20 years the staffing and resources at the IRS fell by over 40%, and as a result the amount collected in taxes by the wealthiest Americans also dropped significantly, along with the number of audits. So there was a huge increase in people worth over $100 million and a huge decrease in the amount of tax revenue collected by people making over $100 million.

The new bill also now introduced a tax on large corporations – where if they report more than a billion in revenue, they get taxes – so no more Amazon paying $0 in taxes for instance. What happens when the Federal Government loses their revenue? Programs get cut and the tax burden falls on the working/middle class as taxes get raised on goods and services to compensate for the lack of money brought in by those that control over 90% of the wealth.

However, this can’t be done at the current staffing and resources – so this Bill gives the IRS the resources to finally collect the taxes from those that have been avoiding paying them.

It will be a huge benefit to the middle class – the government does not care about making sure they get that additional $150 from Joe/Jane tax-payer that wrote off $150 to charity but don’t have a “receipt” , they want the $30 million that someone like Mark Cuban did not pay because it was written down as a “loss” when it was actually not.

In general – as a rule – don’t listen to anyone’s explanation of a piece of legislation if they have a bias in giving that explanation. The Inflation Reduction Act will not reduce Inflation, but it is a catchy name. It will however reduce the deficit, it will help lower Health costs, and it definitely will provide financial incentives to business and individuals to use/produce more climate friendly products. It won’t raise the taxes on the middle class, and it won’t result in someone making $100K being more likely to get audited, but it will make it far more likely that the CEO of the company that person works for gets audited and it will make that company pay its share of taxes.

Will this have a trickle down impact? Perhaps – although due to the tight labor market Corporations will find it difficult to save money on overhead or salary reduction, there are just too many jobs and too few people looking for them – will they raise the prices on their goods and services to compensate for the money they now need to pay out? Again perhaps and there are various articles out there from Economists that debate the point. Read those. But if someone from MSNBC or CNN or FOX or Washington Post or Wall Street Journal, etc is telling you what something is….don’t even listen to it. There are plenty of actual sources to get your information.

This actually an important distinction/discussion – for the past 15 years at least I have been surrounded (either through occupation, social or both) by extremely wealthy / successful people and during that time I’ve been able to get a sense of the attributes they have in common, which is how I was able to write that post on the “Insidious Nature of Wealth.”

Because I am from the media industry and so are most of them, we are all very much aware of how slanted/tainted the information is that gets reported out to the public. So it is pretty much burned into our brains to ignore everything on Social Media, MSM, etc and always just go to the source and any academic/well resourced analysis.

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