Elizabeth Warren proposes bill that would triple the IRS budget in order to 'crack down' on 'wealthy tax cheats'

Far-left Sen. Elizabeth Warren (D-Mass.) introduced legislation Monday that would nearly triple the current budget of the Internal Revenue Service, in order to "crack down" on "wealthy tax cheats" in the U.S.

What are the details?

Warren's office said in a news release that her bill, Restoring the IRS Act of 2021, "would provide the IRS with the resources it needs to crack down on tax dodging by the rich and corporations." The release states that the aim of the bill is to "stop wealthy tax cheats and close the tax gap."

"For too long, the wealthiest Americans and big corporations have been able to use lawyers, accountants, and lobbyists to avoid paying their fair share — and budget cuts have hollowed out the IRS so it doesn't have the resources to go after wealthy tax cheats," Warren said in a statement. "The IRS should have more — and more stable — resources to do its job, and my bill would do just that."

The senator's proposal would increase the IRS's budget to $31.5 billion, which is almost three times as much as its current budget of $11.9 billion.

The Hill reported that the IRS hit its peak budget level in 2010. After adjusting for inflation, according to the outlet, Warren's bill would more than double the 2010 budgetary figure.

What else?

Beyond bolstering the IRS's budget, Warren's bill would add additional reporting requirements for banks to disclose activities of their clients.

It would further require the tax collection agency "to create a plan, and report annually on implementation progress, to shift audits towards high-income, high-wealth tax filers and corporations."

If made into law, the bill would also increase tax penalties for underpayment on taxpayers with income above $2 million, and apply the False Claims Act — additional charges for allegedly lying to the government — to taxpayers who earn more than $10 million who have a misstatement on their return.

The IRS would also have to "conduct an analysis of racial disparities in the agency's enforcement activity."