'Ultra-wealthy pay what they owe': Push to close 'major tax loophole' could raise more than $50 billion

17 June 2024

As the 2024 election draws closer, U.S. tax policy will be among the many issues debated by Republicans and Democrats.

On Monday, June 17, the U.S. Treasury Department and the Internal Revenue Service (IRS), CNBC reports, released a plan they say would "close a major tax loophole" and raise an estimated $50 million in tax revenue over the next ten years.

CNBC's Kate Dore reports that the plan targets "related party basis shifting," which Dore describes as a process in which "single businesses operating through different legal entities trade original purchase prices on assets to take more deductions or reduce future gains."

IRS Commissioner Danny Werfel, on June 14, told reporters, "These tax shelters allow wealthy taxpayers to avoid paying what they owe."

According to Dore, the plan would ramp up IRS efforts to increase audits for the wealthiest Americans and large corporations.

In an official statement, U.S. Treasury Secretary Janet Yellen said of the plan, "Treasury and the IRS are focused on addressing high-end tax abuse from all angles, and the proposed rules released today will increase tax fairness and reduce the deficit."

Similarly, Lael Brainard, a White House National Economic Council advisor, said, "We should ensure ultra-wealthy taxpayers pay what they owe and play by the same rules by maintaining the president's investment in the IRS."

Read CNBC's full report at this link.

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