President Joe Biden unveiled the American Families Plan on Wednesday, a $1.8 trillion proposal that calls for spending on education initiatives, childcare and tax cuts and credits aimed at middle and low-income Americans.

To help pay for it, Biden proposed increasing taxes on wealthy Americans and boosting funding to the Internal Revenue Service to help the agency collect the upwards of $1 trillion taxes the IRS commissioner estimates go unpaid every year.

The proposal will dedicate $80 billion over ten years for this purpose, or $8 billion per year to an agency that spent $11.5 billion last year. The White House expects this investment will raise $700 billion over ten years, nearly half the entire price tag of the American Families Plan.

Read more: Here’s what’s in Biden’s $1.8 trillion ‘American Families Plan’

While this may sound like the perennial pledges politicians make to pay for proposals by cutting “waste, fraud and abuse,” many observers of the U.S. tax system argue that the IRS…

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Source: http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D3CCDB6ABCA4%7D&siteid=rss&rss=1