Biden Treasury Secretary Janet Yellen Admits 90% of New IRS Audits Target Families and Small Business
87,000 new IRS hires not about the super rich...
So much for that Biden promise.
This was obvious as there are not that many millionaires and billionaires to audit. Millionaires and billionaires fight back with better attorneys and lawyers. They also fight back politically by donating to candidates. It is easier to go after those who cannot effectively fight back; just as the DEA started targeting doctors instead of drug dealers.
What most people do not understand when it comes to “taxing the rich” is that when politicians who scream “tax the rich” they raise taxes on “earned income” and very often not “unearned income.” Why is that important? Because most workers and small business S-corps have their income defined as “earned income” and not unearned income such as some investments, capital gains etc.
A billionaire such as John Kerry has much of his income defined as "unearned” so it is taxed at 12-15%. A small business such as “Greasy Automotive Repair” may bring in over $400k a year in revenue, but after paying insurance, taxes, wages, parts, environmental fees, and building rent the profit for the owner is relatively small, but Greasy Automotive is taxed at 37%.
The bottom line is when politicians, especially Democrats, talk about taxing the rich, they are almost exclusively going after small businesses who tend to support Republicans. How many earned income wage earners do you know that bring in over 400k?
Special thanks to Joni Job for the heads up on the video.