Just by the wording of the IRS, it’s pretty obvious their attack on ‘partnership basis shifting’ is supposed to serve to help Joe Biden in the polls, but does anyone even care?
The IRS credited the additional funding provided through the 2022 Inflation Reduction Act for enabling increased oversight and greater awareness of the ‘partnership basis shifting’ practice.
If you’re unaware
Transfer of partnership interest to related party: In this transaction, a partner with a low share of the partnership’s “inside” tax basis and a high “outside” tax basis transfers the interest in a tax-free transaction to a related person or to a person who is related to other partners in the partnership.
Although, some are being told this is an attack on the Uber wealthy, it’s actually an attack on estate planning, which is related to the middle class. Partnerships can be FAMILY related, and it’s not even a guarantee that the people who will be affected by this, will have a lot of money, what it will do is cause more complications, for people who may use this for FAMILY estate planning.
Rich people don’t even pay taxes, most rich people BORROW other people’s, other institutions money and pass the costs over to consumers. Imagine for example you own Apple, Inc. you no longer need you’re own money, as your PRODUCTS are basically printing money which means financial instructions ALL OVER THE WORLD, will want to LEND YOU money.
Just like a credit card, or a mortgage all you have to do is pay the minimum balance, anyone who has to use ‘partnership basis shifting’ likely doesn’t have a lot of money, the numbers show the IRS is only going to get $160 billion.
The federal government spends at least six million dollars a minute, each minute, every day of the year.
$6,000,000 x 1440 minutes in a day = $8,640,000,000 Per day (eight billion six hundred forty million per day).
$160 billion is 20 days (less than a month) of Government spending to harass people who likely do not have the $160 billion to give to the IRS. If they put these “tax cheats” in jail, this is an added expense on the U.S. taxpayer.
I remind you that Joe Biden who might win the presidency again he has raised the national debt every year he’s been in office and his fiscal policies are so bad that the Federal Reserve was FORCED to raise interest rates on him.