The Daily How the I.R.S. Became a Political Boogeyman
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Apr 18, 2023 Alan Rappeport, an economic policy correspondent for The New York Times, dives into the IRS's ambitious $80 billion overhaul aimed at modernizing tax collection. He discusses the agency's historical mismanagement issues and the fears of repeating past mistakes. Rappeport highlights how the IRS has been wielded as a political tool, especially during past administrations, and addresses ongoing scrutiny regarding its audits of low-income taxpayers. The podcast also examines challenges in tackling sophisticated tax strategies of the wealthy amid a politically charged environment.
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FDR's Use of the IRS
- FDR used the IRS to investigate Senator Huey Long, a New Deal critic.
- This was followed by an investigation into William Randolph Hearst after critical newspaper coverage.
Nixon's IRS Targeting
- The Nixon administration's White House gave the IRS a list of political enemies.
- Their goal was to increase the IRS's political responsiveness to the White House.
Clinton-Gingrich Deal
- Republicans criticized the earned income tax credit as prone to fraud.
- Clinton and Gingrich compromised, protecting the credit but increasing IRS scrutiny on lower-income individuals.