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If the most frequently dialed federal agency in America can’t even answer two-thirds of the millions of phone calls it gets, should the government cut its budget?

Congress thinks so. That agency is the Internal Revenue Service (IRS). And lawmakers have hacked at its budget yet again.

Worse still, those cuts will cost more money than they’ll save. They’re basically “a tax cut to tax cheats,” said IRS commissioner John Koskinen.

Regardless of your feelings about the IRS, Koskinen is right.

The government has slashed the enforcement portion of the IRS budget by nearly 20 percent over the last five years. That’s forcing the IRS to shrink the number of employees working on enforcement by 15 percent.

Talk about being penny wise and pound foolish. For every dollar the IRS spent in 2013, it collected $255, according to National Taxpayer Advocate Nina Olson.

Imagine that someone told a CEO that a given department was bringing in hundreds of dollars to his company for every dollar it spent. “It is difficult to see how the CEO would keep his job if he chose not to provide the department with the funding it needed,” Olson said.

Yet, she noted, “that is essentially what has been happening with respect to IRS funding.” Congress has slashed the IRS budget four times in five years. And those cuts are feeding the budget deficit that conservatives supposedly fret about.

It’s all about political expedience. Remember when the IRS faced accusations of singling out conservative nonprofits for tax scrutiny? Along with other experts, I predicted that it would spur further IRS budget cuts. Now Republican lawmakers are taking their revenge.

It’s a vicious cycle. Critics attack the IRS for making mistakes, darkening the public’s view of it. That gives political opportunists a chance to lobby successfully for cuts. A smaller budget virtually guarantees future mistakes by a cash-strapped agency.

Taxpayer services are underfunded too. The IRS now is unlikely to answer even half the phone calls it gets from taxpayers, Olson says. The average wait time is 30 minutes.

So another vicious cycle plays out as taxpayers who try to do the right thing get frustrated. Evasion rates rise. Pressure on the IRS enforcement team mounts.

On top of all that, taxpayers and collectors alike are coping with a tax code that’s more complex than ever. The IRS is responsible for implementing about 40 new provisions of the Affordable Care Act alone, for example.

And it could get more absurd.

The Republican Party is fundraising on the promise of abolishing the IRS altogether, as Citizens for Tax Justice reports. What happens when a country can’t collect taxes?

“Italy and Greece have been stuck in vicious cycles in which tax evasion runs rampant,”Washington Post columnist Catherine Rampell recently wrote. So politicians “raise tax rates to extract more money from the few law-abiding saps still out there, encouraging people to hide economic activity from even higher tax rates, and so on.”

That kind of dysfunction hurts honest taxpayers and bankrupts governments.

Let’s change course before it’s too late.

Bob Lord, a veteran tax lawyer, practices and blogs in Phoenix, Arizona. He is an Institute for Policy Studies associate fellow.

Cross-posted from Other Words

Photo: 401(K)2013 via Flickr

Blake Neff

Twitter screenshot

Reprinted with permission from MediaMatters

On July 10, CNN's Oliver Darcy reported that Blake Neff, the top writer for Tucker Carlson's prime-time Fox News show, had been anonymously posting racist, misogynistic, homophobic, and other offensive content on an online forum for five years. Neff used racist and homophobic slurs, referred to women in a derogatory manner, and pushed white supremacist content while writing for Carlson's show. Neff resigned after CNN contacted him for comment.

As Darcy reported, in an interview with the Dartmouth Alumni Magazine, Neff claimed anything Carlson read during his show was initially drafted by him. Darcy also found instances where there was "some overlap between the forum and the show," as sometimes the "material Neff encountered on the forum found its way on to Carlson's show."

During a 2018 appearance on Fox's The Five to promote his book Ship of Fools, Carlson mentioned Neff by name, calling him a "wonderful writer." Carlson also included Neff in the acknowledgments of the book.


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Before joining Fox News, Neff worked at The Daily Caller, a conservative news outlet that Carlson co-founded. The outlet has published a number of white supremacists, anti-Semites, and bigots.


Carlson has a long history of promoting white supremacist content on his show. His show has featured many guests who have connections to white supremacy and far-right extremism. Carlson has regularly been praised by Neo-Nazis and various far-right extremist figures, and he's been a hero on many white supremacist podcasts. Users of the extremist online message boards 4chan and 8chan have repeatedly praised Carlson.

The manifesto released by the gunman who killed 20 people in El Paso, Texas, in 2019 was strewn with content that echoed talking points from Carlson's show. Days after the shooting, Carlson declared that calling white supremacy a serious issue is a "hoax" as it is "actually not a real problem in America."

Carlson has been hemorrhaging advertisers following his racist coverage of the Black Lives Matters movement and the recent protests against police brutality. Now that we know his top writer was using content from white supremacist online message boards for Carlson's show, it is more imperative than ever that advertisers distance their brands away from this toxicity.