While testifying before the Ways and Means Committee on Friday, Treasury Secretary Janet Yellen made a series of newsworthy comments, ranging from how IRS audits will affect the middle class to his refusal to share details about who will actually pay for President Biden’s proposed tax. excursions Here are six key moments.
Secretary Yellen pledged to make public the IRS plan for its $80 billion in new funding to hire 87,000 new agents.
President Jason Smith (R-MO) asked Secretary Yellen at the start of the hearing if she would commit to providing Congress with the IRS’s plan for the $80 billion in new funding provided by Democrats in the so-called “Inflation Reduction” Act. Secretary Yellen promised that the plan will be provided in a matter of “weeks.”
Secretary Yellen admitted that the number of taxpayers facing new audits may increase, while the ratio of audits may remain relative to “recent years.”
Representative Adrian Smith (R-NE) asked Secretary Yellen about her directive that is supposed to protect middle-class taxpayers from increased audits. Yellen admitted that the number of audits would increase for families, but not the share of total audits. Based on Yellen’s response, Representative Smith summarized: “So based on the data, we can expect up to 90 percent of the new audits to be on those making less than $400,000.”
Secretary Yellen refused to commit to showing how middle-class families and small businesses would be protected from President Biden’s tax hikes.
President Smith asked Secretary Yellen to share the legislative text of President Biden’s proposed new tax hikes as part of his fiscal year (FY) 2024 budget, in order to show how, exactly, the middle class would not see higher taxes But Secretary Yellen refused to commit to doing so.
Secretary Yellen admitted that the Treasury’s proposed bank monitoring program that would monitor Americans’ personal banking transactions could not move forward without legislative approval.
Rep. Drew Ferguson (R-GA) pointed out to Secretary Yellen that the Democrats’ attempt to create a bank surveillance program for the IRS was blocked by Republicans. He sought assurances from the Secretary that none of the funds going to the IRS will be used to implement this bank monitoring program unless explicitly directed by Congress. Secretary Yellen responded, “Of course not.”
Secretary Yellen acknowledged that many Americans are deeply concerned about the new IRS reporting requirements for selling used couches and concert tickets.
Representative Carol Miller (R-WV) expressed concern about new IRS reporting requirements that would force Americans to report the sale of a used couch or concert tickets. Democrats introduced the provision into the so-called American Rescue Plan without holding a single hearing. Secretary Yellen went on to acknowledge that she was aware of the serious concerns of individuals and organizations. “I heard a number of concerns from people and organizations that this was confusing…”
Despite Secretary Yellen’s denials that low- and middle-income families are paying higher taxes under President Biden, inflation has led to increases in both prices and wages that trigger higher taxes, while the North- Americans lose value.
Representative Beth Van Duyne (R-TX) pointed out that Americans outside of Washington, DC, pay more in taxes simply because of inflation caused by inflationary spending by Democrats. He noted that while wages may have risen for some Americans, the value of the dollar has declined, so low- and middle-income workers who saw wage increases are stuck paying more in income taxes . Families who pay higher gas prices have to pay more taxes for that fuel. And those who pay more for groceries and used cars also face higher taxes on those purchases.
