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The IRS plans to increase the audit rate for taxpayers earning over $10 million by about 50% by 2026, made possible by additional funding provided by the Inflation Reduction Act of 2022. Maryland officials have announced that a replacement for the Francis Scott Key Bridge, which was destroyed in March, will cost between $1.7 billion and $1.9 billion. President Joe Biden has announced an additional $3 billion spending to replace lead pipes across the US, part of an initiative funded by the $1 trillion infrastructure law signed in 2021.
IRS Increases Audit Rates for Wealthy Taxpayers and Large Businesses
The IRS reveals its intent to augment the audit rate for taxpayers earning above $10 million by approximately 50% according to the newly released strategic operating plan. The tax body is planning to escalate the audit rate for high earners from 11% in 2019 to 16.5% by 2026, funded by the Inflation Reduction Act of 2022. Furthermore, the IRS aims to triple the audit rate for businesses valued over $250 million and tenfold for business partnerships with assets over $10 million. However, there’s no plan to increase audits for individuals earning below $400,000 annually, as highlighted by IRS Commissioner Danny Werfel.
Despite a 30% reduction in compliance staffing from 2010 to 2021, the IRS, due to the Inflation Reduction Act, has added 11,000 positions since 2022, with plans to add another 14,000 by 2029. However, this expansion depends on additional funding, which has met GOP opposition. Werfel warned that additional cuts threaten the IRS’s mission to curb wealthy tax evasion and improve services for all Americans.
Francis Scott Key Bridge Replacement Estimated to Cost More Than $1.7 Billion
According to Maryland officials, the Francis Scott Key Bridge’s replacement would cost between $1.7 billion and $1.9 billion. The new bridge, a cable-stayed design, is set to open by fall 2028. However, the question of who will cover the project’s cost remains unresolved, with President Biden and Democrats in Congress promising to foot the full bill and potentially recover some funds from insurers.
Inflation Remains a Major Concern Among Americans
According to recent Gallup polling data, 41% of Americans consider inflation the most serious financial problem, marking the third consecutive year inflation has topped the list. This could spell trouble for President Biden’s reelection bid as inflation concerns rise despite softening inflation rates in the past year.
Biden Allocates $3 Billion for Lead Pipe Replacement
President Joe Biden announced an additional $3 billion allocation to replace lead pipes nationwide. The funds come from the $1 trillion infrastructure law Biden signed in 2021, bringing the total designated for specific projects to $8.8 billion. The administration aims to completely eliminate lead pipes, as stated by Environmental Protection Agency Administrator Michael Regan.
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