Pay Taxes Less Frequently? We're Interested...
The IRS's budget has been getting smaller in recent years, and this is concerning, as the IRS is the federal government's main source of income. Right now, the IRS is so underfunded, it is not able to operate efficiently. A couple of years ago, things got so bad that the IRS received almost 100 million phone calls and only answered one third of them. All those missed calls don't just mean a ton of grumpy people. It also means there are not enough auditors making sure that people are paying the taxes they owe.
President Biden has a plan to pump billions of dollars into the IRS to shore it up and help it do its job, but there may be a simpler solution. This solution does not require more funding, and as another bonus, we might not have to file our taxes every year!
On The Indicator, we discuss biennial tax filing, a system in which Americans would pay our taxes not once a year, but once every two years.