November 8, 2023
Senate Budget Committee holds tax hearing on wealthy individuals
At the November 8 Senate Budget Committee hearing, "Fairness and Fiscal Responsibility: Cracking Down on Wealthy Tax Cheats," Democrats and some witnesses defended the Internal Revenue Service (IRS) funding boost enacted in the Inflation Reduction Act (IRA) as allowing the agency to expand audits to additional types of entities that have had little audit coverage in the past, including complex partnerships, which some Republicans suggested may be an overreach. The hearing comes as House Republicans proposed a rescission of more than $14 billion of the IRS funding in a national security supplemental bill — despite the fact that clipping funding for the agency is scored as a revenue loss, not gain — and a day before the Senate Finance Committee will conduct its own hearing on the taxation of high-wealth individuals.
Additional information is available in the attached Tax Alert.
The staff of the Joint Committee on Taxation has prepared a document, "Present Law And Background On The Income Taxation Of High Income And High Wealth Taxpayers," ahead of the Finance hearing.
Testimony from the Budget Committee hearing is available here.
Tax hearing on wealthy individuals