The IRS has announced that it’s “too expensive” to audit the rich. Affluent taxpayers, the 1%, are too well protected from government intrusion. Their tax returns are complex and take more time and more experienced auditors to review them. The IRS then has to pay these more experienced auditors a higher price to audit those larger accounts. It’s become an expensive hassle for them. They encounter resistance from the teams that the affluent have behind them to defend them from the IRS. So, what is their solution?
Target the poor.
It is easier and cheaper for the IRS to go after the working class.
As if the struggling working class in this country doesn’t have enough to deal with, watch out for Big Brother! Because lower-income families have fewer resources to guard their finances, the IRS finds it a “better use of their resources” to target the poor instead of the wealthy. Because the wealthy have the means to fight back against government intrusion aka well-paid attorneys and accountants, the IRS has decided that any effort to monitor the “haves” is not worth their time. They will instead focus on the “have nots,” or the poor working and middle class.
It’s easier and cheaper to go after the poor and audit them. Those who make less money have fewer defenses to combat the IRS and their returns are simpler. It requires less expense and effort from the IRS to go after a much more fragile portion of our economy – the working poor.
It’s no surprise that the middle class in this country is disappearing at a rapid rate. One contributor is the mountainous debt that many Americans have saddled themselves with, especially when it comes to predatory student loan lenders. Some people are paying exorbitant interest on student loans when they didn’t even achieve a degree. This compounds the problem for the lower-income American that already exists: a country bordering on financial collapse.
What this doesn’t address is a hidden target in the sights of the IRS. Whom this really means the IRS is targeting: The Shadow Economy.
The IRS is targeting people who supplement their income with side hustles.
The Shadow Economy is made up mostly of the poorest in our economy, those struggling to get by even if it’s a two-income household. The industrious working poor who struggle to pay their bills, even on two incomes, turn to the side-hustle to make it.
Over 50% of Americans have a side-hustle. What was once the oddity of the entrepreneur is now mainstream. There are a lot of factors that may have contributed to this, including stagnant income growth nationwide and the rising cost of living. But the fact is, most Americans are now using a side hustle to cover household bills because their day job is just not enough.
The side hustle has exploded in the American economy over the last decade, and the IRS has taken note and put us in their sights. Because apparently hard-working people are “bad” for the economy.
Not all side-hustles are part of the Shadow Economy, but many are. A side-hustle becomes part of The Shadow Economy when it’s paid for in cash under the table. The side-hustle is the growing movement in the United States of the freelance worker and gig economy. Sometimes it’s on the books, but oftentimes, it is not. And here is where the “side hustle” meets “The Shadow Economy” and becomes a means for those who are pinched in our struggling economy to get by.
The government is targeting those who need to keep every penny.
The Wall Street Journal spouts doom and gloom with its definition of The Shadow Economy saying that because those who operate their business under the table with cash-only can potentially hurt the overall economy. But it’s also a larger issue of governmental control.
Think for second who would be driven to this kind of enterprise. If you can’t find a job or you’ve already got one, but it doesn’t pay the bills, what are you going to do? Get a side-hustle.
Anything I do personally, I keep above board. I pay taxes. But people who are desperate are often driven to operate outside of the law. Desperate people who are already working two jobs and still falling behind probably aren’t going to be thinking about Uncle Sam looking over their shoulder.
And the US government, instead of addressing the growing desperation of the American workforce that’s behind the boom of the “side hustle,” has put them in its sights.
The IRS is targeting the most desperate in our failing economy rather than going after “the big guys” and fighting their many well-paid attorneys and CPAs. It’s the equivalent of the police going after a kid selling lemonade on the sidewalk instead of the home break-in down the block.
It’s an easier target with far less resistance.
Does the government want to keep us broke and powerless?
Consider this. It’s in the government’s best interest to keep people from bettering their lives if they don’t want to relinquish control. If citizens are self-sufficient and financially stable, they might have the time and energy to fight back or question motives. But no, if the populous is off balance and hungry they focus on surviving day to day and don’t ask questions.
So, those who want control send the IRS after the poor just struggling to get by. They ignore the elite because they are too time-consuming and expensive to go after.
Instead, the IRS has decided to double down on the most desperate and vulnerable in our society.
I know you might be thinking, what about illegal workers or drug dealers who may be paid under the table?
If that’s the case, that still leaves the IRS going after desperate workers instead of the corrupt employers and drug lords…who would take too much “time” and “money” to go after. Instead, they are really targeting drug addicts and those who are being preyed upon by the demand for cheap labor.
Of course, paying taxes is a law. It’s not a law that I’m going to break. But for some people getting paid under the table is the only way to make ends meet. Consider those on disability. If they “make too much” they will lose their check. But many times, those on disability can only work sporadically and on bad months they cannot work. Without their check they can’t make ends meet. They aren’t allowed to work, but they don’t want to starve either, so they work, but don’t declare their income so they can keep their disability checks.
Of course, we should follow the law. Of course, we should pay taxes. But with this kind of discrimination by the IRS against the poor, where is “all men are created equal?” And who among us should be considered above the law?