| Hard working americans stuck tax bill Original Source Link: (May no longer be active) http://bernie.house.gov/documents/releases/20020408182201.asphttp://bernie.house.gov/documents/releases/20020408182201.asp
For Immediate Release, 4/8/2002 Wealthy Tax Cheats Given a Pass, While Hard-Working Americans Get Stuck with the Bill
New York Times article reveals that the wealthy are less likely to be audited by the IRS than working people
Representative Bernie Sanders expressed his concern about a recent New York Times article which revealed that the wealthy are much less likely to be audited by the IRS than low to middle income Americans costing the federal government hundreds of billions of dollars in lost revenue.
Sanders said, “While the IRS is spending a huge amount of money and resources targeting the tax statements of the working poor, it is largely ignoring thousands of wealthy tax cheats and corporations across the country costing the federal government hundreds of billions of dollars in lost revenue every year. This is simply unacceptable.”
According to the New York Times article, “The I.R.S. employs 2,200 people to stop what is at most $9 billion in cheating by low-income wage earners applying for the earned income tax credit. It employs only about eight times that many people to hunt for all other kinds of cheating, which some experts estimate at more than $300 billion annually. As a result, the chance of being audited if one applied for the earned income tax credit for the working poor was 1 in 47 last year. But the chance was much less for high-income taxpayers - 1 in 145 for people earning more than $100,000. It was even less for a business arrangement favored by lawyers, doctors and other professionals, called an S-Corporation: 1 in 233. And the chance of an audit was less still for partnerships: 1 in 400.”
Sanders concluded, “It is time for the IRS to investigate wealthy tax cheats who are avoiding paying hundreds of billions of dollars every year in taxes. This is money that could be spent on insuring the 43 million Americans who have no health insurance; solving the affordable housing crisis; providing a meaningful prescription drug program for all Americans; and providing our veterans the benefits that they were promised.”
For the full text of the New York Times article, click here
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