Trust us to figure out something useful to do with it. In a MarketWatch article centered on auditing the rich, this bit, early in the article, jumped out at me.

The Internal Revenue Service is getting specific about how many more audits it wants to spring on rich taxpayers and businesses, as the tax collector absorbs billions of dollars in funding in order to toughen tax compliance at the top.

This is backwards, for all that it’s too typical of the way Congress works. What should have happened, and what We the People can make happen if we finally get our own backs up and elect people who’ll represent us and not lobbyists, is that Congress should have responded to the IRS’ budget item request—here, expanded audit rates—with a requirement to show Congress IRS’ plan for carrying out those audits. That plan should have been required to lay out all the gory details and not filled with glittering generalities and vague goals.

There should have been no funds appropriated, much less allocated, until that detailed plan was provided and was satisfactory to Congress. Of course, the flip side of that, is Congress should appropriate and allocate the relevant funds, if the plan was sufficient: Congress should not micromanage the thing.

But Congress didn’t, and it won’t any time soon.

The Wall Street Journal is concerned about the IRS exercising its claimed authority to delay implementation of some tax requirements for which Congress had set strict enforcement deadlines. Apart from the question of whether the IRS actually has that authority, the concern centers on how the agency moves might impact revenues for the Federal government.

…the tax agency’s moves frustrate lawmakers’ attempts to raise revenue and plug gaps in tax compliance.

The real question, though, centers on an aspect of Federal revenues about which I’ve written before. This is the claim made in the linked-to article’s headline, and which is repeated in the body of the article:

It Could Cost $8 Billion

And

The Internal Revenue Service has now postponed them [certain rules for tax collections] all for two years—which could cost the Treasury more than $8 billion.

This is risible on its face. Aside from the fact that the Federal government has not established any need for the money, say the dollar value of the claim is accurate. Those $8 billion are the sole property of us taxpaying Americans. It doesn’t cost the Federal government one single copper penny—or copper-plated zinc penny in today’s currency—to not receive what doesn’t belong to it in the first place.

Further, while the IRS’ delays might reduce, in the immediate term, revenues to the Federal government, the delays result in those $8 billion being left in the hands of us taxpayers—who know much better than Government how to spend those dollars, or save them, on our individual needs and wants. That leads to increased activity in our private economy, and that leads, in the mid- to longer-term, to net increases in revenues to Government.

It would lead to even more revenues to Government were the IRS’ delays functionally made permanent by eliminating altogether those tax items for which the IRS is delaying collection. That increase in certainty regarding the reduction in Government confiscation of our dollars in the form of taxes would lead to even greater private economic activity, and so to even more revenue, on net, to Government.