When President Biden talks of bulking up the Internal Revenue Service, he must be fantasizing about some kind of SEAL Team 6 for audits. His plan is to put another $80 billion into IRS tax enforcement over 10 years, which the White House claims will raise $700 billion of revenue that’s being left on the table.
Not even close, according to a Thursday report by the Congressional Budget Office. The extra IRS funds, the CBO says, would probably produce only $200 billion. Blame it on a classic economic culprit, diminishing returns. Last year the IRS spent $12.3 billion and employed 75,773 full-time equivalents.