Biden’s Audit-the-Rich Target of $700 Billion Seen as Tall Order

  • White House aims at wealthy and companies to fund economy plan
  • IRS would need to staff up, audits can take years to resolve
President Joe Biden departs after delivering remarks on his American Rescue Plan, in Washington, D.C., U.S., on May 5.Photographer: Jim Lo Scalzo/EPA/Bloomberg
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President Joe Biden’s plan to raise $700 billion over a decade from increased tax audits of the wealthy and corporations -- a major funding source for his economic-investment proposals -- will probably take years to bear fruit and faces skepticism that the figure is realistic.

The Biden administration has proposedBloomberg Terminal a more than 10% funding increase for the Internal Revenue Service for the next fiscal year and an overall investment of $80 billion over the next 10 years to beef up the agency’s depleted auditing staff and outdated technology. Biden’s American Families Plan, released last week, highlighted the audit take as a principal way to pay for $1.8 trillion in initiatives including child care and education.