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Elon Musk reacts to $80B IRS overhaul in Inflation Reduction Act: ‘Seems high’

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Billionaire Elon Musk is amongst those raising their eyebrows over the roughly $80 billion overhaul of the Internal Revenue Service included within the Democrat-backed spending bill that passed the Senate on Sunday.

“Seems high,” Musk, the world’s wealthiest individual, tweeted.

Musk’s response to the IRS funding was in response to a report by the Washington Free Beacon, which found the tax agency’s expensive hiring spree would make it larger than the Pentagon, the State Department, the FBI, and Customs and US Border Patrol combined.

Funding included within the reconciliation bill, dubbed the “Inflation Reduction Act,” will allow the IRS to rent as much as 87,000 additional agents – potentially doubling the agency’s size. The IRS plans to make use of the cash to step up its tax enforcement efforts and modernize its technology in a bid to maximum federal tax revenue.

“Possibly investment in automation?” Musk added in one other tweet.

Possibly investment in automation?

— Elon Musk (@elonmusk) August 8, 2022

President Biden and other Democratic proponents of IRS expansion argue the initiative will help to shut the “tax gap” – or the quantity owed to the federal government in comparison with what is definitely collected. But Republican lawmakers and other critics say the funding will place costly burdens on individual taxpayers and small businesses.

As The Post reported last week, the nonpartisan Joint Committee on Taxation estimates that as much as 90% of the $200 billion of the extra tax revenue the IRS is projected to gather will come from small businesses earning lower than $200,000 annually.

Democrats argue the overhaul will help the IRS close the tax gap.Getty Images

Meanwhile, just 4% to 9% would come from businesses making greater than $500,000 per yr.

Republican firebrand Rep. Marjorie Taylor Greene took her criticism of the IRS plan a step further in a Twitter thread.

“87,000 IRS agents might be hired with $80 billion taxpayer dollars when the Senate Reconciliation bill passes this weekend,” the Georgia representative said last Friday. “They usually’re buying more guns & ammo too. Lower to middle income Americans & small businesses might be the first targets of Democrat’s recent IRS force.”

The Democrat-controlled Senate passed the Inflation Reduction Act by a 51-50 vote on Sunday, with Vice President Kamala Harris serving because the tiebreaker. The $740 billion spending bill also includes tax hikes on corporations and major investments related to climate change.

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