Gee who would have ever imagined anything like this ever, ever happening?
Small business owners may soon be in for a lengthy and expensive battle with the IRS, tax experts warn.
A key provision in the Inflation Reduction Act — which throws an extra $80 billion to the IRS to improve the agency's collection of under-reported income — will end up targeting small business owners to pay for the legislation, according to nonpartisan watchdog the Joint Committee on Taxation.
The group estimates that between 78% and 90% of the estimated additional $200 billion the IRS will collect will come from small businesses making less than $200,000 annually.
Wow. Just wow. Complete shocker. Never could have seen it coming.
You may not be aware of it, but there are perverse incentives for the IRS to go after lower earners:
"The IRS will have to target small and medium businesses because they won't fight back," Joe Hinchman, executive vice president at National Taxpayers Union Foundation, told The Post. "We've seen this play out before … the IRS says ‘We're going after the rich' but when you're trying to raise that much money, the rich can only get you so far."
In fact, going after the lower and middle class can actually be more lucrative for IRS auditors than trying to get more money from the wealthy. "The rich have their lawyers and fight it — that's why the poor are easier to go after," Hinchman adds.
In other words, the IRS as it rolls up to your small business door is thinking:
Didn't Biden promise over and over and over that there would be no new taxes on anyone making under $400,000?
Guess that doesn't apply to money we make on our own.
We don't have to be weak, though. One way to start is by voting very well in November.
P.S. Now check out our latest video: "Highlights from Biden's speech last night" 👇