Republicans Protecting Tax Cheats

 Eighteen months ago the then Democrat controlled Congress passed the Inflation Reduction Act. Since then, using funds allocated by that legislation the Internal Revenue Service (IRS) declared open season on wealthy tax cheats and so far has recovered over $480 million in overdue taxes from delinquent millionaires. Last month the IRS opened 76 new examinations into the largest partnerships in the U.S. that include hedge funds, real estate investment partnerships and large law firms.

More than 160 million Americans voluntarily pay their federal income taxes every year and generally pay what they owe. The right leaning Wall Street Journal reported that “Americans didn't pay an estimated $68 billion in taxes due on their 2021 returns—the largest shortfall ever.” Senate Finance Committee Chair Ron Wyden (D-Oregon) organized an investigation which found that nearly 1,000 Americans who make more than $1 million a year failed to file tax returns over multiple recent years, potentially owing $34 billion in taxes.

According to a 2021 White House study, the wealthiest 400 billionaire families in the US paid an average federal individual tax rate of just 8.2 percent. If you’re reading this article you likely paid around 10% of your total income in federal taxes. The really wealthy pay a lower percentage of taxes than you and I do and yet still cheat on their taxes.

During last year’s debt ceiling negotiations between the Biden administration and the now Republican controlled House; Monica de la Cruz, Chip Roy, and their cronies held the paychecks of millions of Americans hostage. In order to avoid damage to individuals and the national economy that a government shut down would cause, President Biden accepted budget reductions that include taking back billions of dollars allocated to the IRS. Those cuts will affect the ability of the IRS to continue pursuing wealthy tax cheats and modernization that was intended to reduce wait times and improve the experience tax payers have when calling the IRS for answers to questions about their incomes taxes.

The fact that supposedly budget conscious Republicans chose to target the IRS for major funding reductions when all indications are that for every $1 spent the agency will bring in an extra $2 goes to show you it isn’t really about the budget. The Republican attack on the IRS is all about protecting the wealthy tax cheats that provide campaign cash, high paying jobs for family members, and free vacations in posh resorts.

None of the billions in overdue taxes include the taxes evaded through tax shelters like owning professional sports teams or race horses, or other income re-classification tricks the super-wealthy use to game the system.

When Trump was in the White House an American earning less than $50,000 a year was more likely to be audited than someone earning $1 million a year and the percentage of mega-corporations earning billions hit an all time low. No wonder the super-wealthy want Trump back in the White House. How anyone earning less than $1 million a year can vote Republican is beyond me.

Published in the Seguin Gazette - January 17, 2024

Biden Making US Better

 Since this is an election year let’s review some of the most important accomplishments of the Biden administration in the last year and how the American people were affected by it. 

In the area of prescription drug and health care costs; 15 million Americans now save $800/year on health insurance and insulin cost for seniors for seniors is now capped at $35 per month. Drug companies are now required to pay rebates to Medicare if they raise prices faster than inflation. Pharmaceutical companies now must allow Medicare to negotiate lower prescription drug prices, starting with the 10 costliest, most widely used drugs used to treat blood clots, cancers, arthritis, diabetes. The Biden administration successfully encouraged 42 states to expand Medicaid postpartum coverage from two months to 12, but not Texas. A record number of Americans now have health insurance and we’ve just had the strongest Obamacare enrollment ever.

Regarding the costs of living; inflation spurred by the pandemic has fallen 65% since last summer and gasoline prices are down more than $1.90 from its peak. Grocery inflation is at its lowest level in two years; egg prices are down a $1/dozen. Americans are saving billions of dollars a year due to crack downs on hidden junk fees in airline tickets, banking, investment advice, health insurance and apartment rentals.

In the area of employment and pay the Biden administration’s economic policies created over 14 million jobs, including 800,000 manufacturing jobs, while unemployment has stayed below 4% for 22 straight months. Biden supported unions and collective bargaining making him the most pro-union president in history. The economy is so good that the country set a record of 14.6 million applications to start new businesses. Wages, wealth and the share of working-age Americans with jobs are higher than before the pandemic. The US has had the fastest post-COVID economic recovery of G7 industrialized countries.

In only three years the Biden administration has made more progress on the climate crisis than any prior administration while lowering energy costs. The Inflation Reduction Act, provided for the largest investment in climate action ever by created 210,000 new clean energy jobs in 2023 alone. While there is much more to do Biden deserves credit for helping to secure a historic, international agreement at COP28 to transition away from fossil fuels, triple renewable energy globally by 2030. The administration’s fiscal and other policies spurred hundreds of billions of dollars in private sector investment in wind, solar, electric vehicles, saving families an average of $500/year on energy costs. Biden took executive action to cut emissions across the economy, including issuing standards to reduce methane pollution.

The Biden administration made higher education more affordable by approving $127 billion in debt cancellation for 3.6 million Americans, more than any President in history even in the face of Republican-led lawsuits. Biden’s SAVE plan will cut undergraduate loan payments in half and prevent student loan balances from growing due to runaway interest. Administration policies helped 700,000 people access public service loan forgiveness programs. The administration invested $7 billion in Historically Black Colleges and Universities.

Biden signed Executive Orders to protect access to abortion, contraception and the right to travel across state lines to obtain care in reaction to state abortion bans that followed the Supreme Court overturning Roe v. Wade, like here in Texas. The administration strengthened privacy protections for patients and doctors.

There’s plenty more that Biden and Democrats have done in the face or Republican obstruction, just think of how much more could be accomplished if we re-elect Biden and a Democratic majority in both the House and Senate.

Published in the Seguin Gazette - January 3, 2024