The IRS plans to end a major tax loophole for wealthy taxpayers that could raise more than $50 billion in revenue over the next decade, the U.S. Treasury Department says.
The guidance and ruling being announced Monday includes plans to essentially stop “partnership basis shifting” — a process by which a business or person can move assets among a series of related parties to avoid paying taxes.
Biden administration officials said after evaluating the practice that there are no economic grounds for these transactions, with Deputy Treasury Secretary Wally Adeyemo calling it “really just a shell game.” The officials said the additional IRS funding provided through the 2022 Inflation Reduction Act had enabled increased oversight and greater awareness of the practice.
“These tax shelters allow wealthy taxpayers to avoid paying what they owe,” IRS commissioner Danny Werfel said.
Unless the government has revenue from some other channel besides taxation (import tariffs or fees on government services like passports perhaps), deficit spending is rarely ever possible in perpetuity. So what other option are you referring to for long term support of a society without taxation?
You are defining an extremely narrow use case, which is possibly factual, but so far removed from any part of the discussion that I agree with you that your point doesn’t seem to address anything the OP is asking about. The Multiplier Effect is often referenced with deficit spending, but there’s no requirement I’m aware of that it ONLY requires to deficit spending.
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