The White House will reportedly seek to improve the IRS’s enforcement of tax policy as a way to fund the many provisions in President Joe Biden’s American Families Plan.
Sources tell the New York Times that the Biden administration will propose increasing the IRS’s overall budget by $80 billion over the next ten years. The additional funds would help the agency pursue individual and corporate tax delinquents and make collections on those balances. It is believed that the focus will largely be on high financial earners.
The administration believes this budget increase could result in as much as $700 billion in revenue over the next decade, though it remains to be seen if the Congressional Budget Office will back up that assessment. This move will be in addition to other proposed tax provisions, such as an increase of the top rate for the capital gains tax from 20 percent to 39.6 percent.
The American Families Plan, which is set to be officially unveiled this week as Biden delivers his first joint address to Congress on Wednesday, is expected to include measures addressing child-care funding, education, and paid family leave. Early estimates put the plan’s presumed price tag between $1.5 and $1.8 billion.
With details still being finalized, some of Biden’s fellow Democrats are advocating for additions to the massive legislation. Seventeen senators signed onto a letter asking the president to add Medicare reforms, such as lowering the age of eligibility and negotiating for lower medication costs, to the bill. Senator Elizabeth Warren of Massachusetts is proposing $700 billion over ten years for universal child care.
