by Nick Gromicko
Here are my thoughts about providing funding to the IRS:
We don’t actually have any funding to provide to the IRS. We have to borrow it. The government spends more than it brings in every year. The rest of the money it needs it gets from the Federal Reserve. The Federal Reserve gets it by inflating the money supply (printing). The more it inflates the money supply, the more the purchasing power of our currency decreases. We see it in rising prices. This is inflation. Inflation is a tax. Inflation harms us all.
Since we don’t have the funding to provide to the IRS, the funding we provide has to be borrowed. This increases our national debt. Increasing the national debt increases the amount of money we Americans have to spend to service that debt each year. The cost of just servicing that debt is nearly as much as the cost of funding all of our national defense, year after year. All that money spent on debt interest can’t then be used to help the productive economy, which harms us all.
Since providing more funding to the IRS causes inflation, prices increase. When home prices increase, fewer people can afford to buy one. This harms us all but it particularly harms inspectors who then have fewer homes to inspect due to fewer homes being purchased.
Providing more funding to the IRS causes inflation which the Federal Reserve tries to offset with higher interest rates. Higher interest rates cause fewer sellers wanting to list their homes because they don’t want to give up their existing low-interest mortgages. This particularly harms inspectors who then have fewer homes to inspect due to fewer homes being listed for sale.
Inflation causes the Federal Reserve to offset inflation with higher interest rates. Higher interest rates cause fewer buyers wanting to buy a home because they don’t want to take out high-interest mortgages and couldn’t afford a home if they did. Americans now have to pay both more for homes, but also more to finance the purchase of those more-expensive homes. This particularly harms inspectors who have fewer homes to inspect due to fewer homes being purchased.
The IRS will use the funding to launch more audits. Audits are mostly targeted at small businesses, like inspection companies. This causes inspection companies to suffer the costs of complying with an audit (paperwork, accounting, and perhaps even a tax attorney). Those costs on both sides (IRS and taxpayer costs) is all money wasted. This harms us all.
The IRS will use the funding to collect even more money from small businesses. Siphoning even more money out of the productive economy and giving it to those who are doing the siphoning is a double whammy and harms us all.
The IRS will use the funding to hire people. These people have to come out of the productive economy. If they didn’t go to work for government, they might be producing products and services for us. One of the causes of inflation is not having enough products and services. We need more people working to help the economy, not fewer. Fewer workers cause lower production, which exacerbates inflation, harming us all.
The IRS will use the funding to catch tax cheats. Tax cheats try to keep money away from the IRS. We are all better off with almost anything the tax cheats do with that money (invest it, donate it, save it, lend it, spend it, etc.). The worst thing for us all is when a tax cheat gets caught and the money is confiscated and given to bureaucrats. Remember, every dollar siphoned out of the productive economy and given to bureaucrats harms us all by making us all that much poorer. Being poor is the number one cause of lowered life expectancy in the U.S. Thus, providing funding to stop tax cheats is statistical mass murder.