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Rick Scott lowers his sunglasses
Sen. Rick Scott, R-Fla.Tom Williams/CQ Roll Call
  • The IRS budget was proposed to be cut in half by Senator Rick Scott.

  • Chuck Rettig, the IRS chief, said that you might be better off if you just shut it down.

  • The IRS is understaffed and underfunded.

The IRS is trying to dig itself out of a hole of millions of unprocessed returns and late refunds due to a reduced budget, staff, and new responsibilities.

The IRS and the Treasury Department both agree that the agency needs more long-term funding.

Sen. Rick Scott has a solution to Shrink the IRS budget by 50%. That was part of hisRescue America plan that he rolled out last month. He introduced it as a rank-and-file Republican instead of being the head of the Senate campaign fundraising arm. Ahead of the elections, Democrats are attacking the proposed tax hikes.

Representative Lloyd Doggett asked IRS Commissioner Chuck Rettig about the impact halving the agency's budget would have.

If the IRS budget was cut by 50%, you could save more money by shutting it down. How are you going to pay for what we need and what we deserve?

"Perhaps shutting it down is exactly what those who would make this outrageous proposal have in mind," said Doggett, a Democrat from Texas.

The architect of the plan did not see it that way. Scott argued that he did not intend to shutter the IRS by proposing drastic budget cuts.

The Florida Republican told Insider that they need to make the system simpler. The IRS is so complex. It shouldn't be that way if you can get lawyers and accountants.

Tax evasion is a trillion dollar problem. The wealthiest 1% of taxpayers dodge $163 billion in taxes each year, according to the Treasury Department.

The answer to cutting down on tax evasion might be different than Scott suggests. According to the Treasury, allocating $80 billion in funding to the IRS for enforcement could bring in $700 billion in tax revenue over the next ten years.

The Treasury Department and the IRS have sounded alarm bells over the agency's funding. According to national taxpayer advocate, the IRS was sitting on over 6 million unprocessed refunds.

The IRS has severe limitations and no long-term, predictable funding, and the burden that that places on taxpayers waiting for checks is what Rettig has been outspoken about.

The original article is on Business Insider.

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