In a recent government meeting, discussions centered on the importance of adequately funding the Internal Revenue Service (IRS) to enhance tax compliance and address tax avoidance among high-income individuals. The meeting highlighted New Jersey's progressive tax policy, supported by Governor Murphy, as a model for equitable taxation.

Mr. Lord, a key speaker, emphasized that the IRS has historically faced resource constraints, hindering its ability to ensure that all Americans pay their taxes. However, a new initiative launched in the fall of 2023, funded by the Inflation Reduction Act (IRA), aims to target wealthy individuals with significant unpaid tax debts. This initiative has seen the IRS assign dozens of senior staff to focus on cases involving taxpayers earning over $1 million and owing more than $250,000.

The IRS reported recovering $1 billion in taxes from over 1,600 high-income individuals, with nearly 80% of them making payments. This marks a significant increase of $100 million since July, when the initiative was first announced. Mr. Lord noted that while the IRS is now better equipped to conduct audits and detect tax avoidance strategies, the challenge remains ongoing, as tax lawyers continuously find ways to exploit loopholes.

The conversation also touched on the need for Congress to address these loopholes to further enhance tax compliance. Mr. Lord likened the situation to a \"game of cat and mouse,\" where the IRS must remain vigilant and proactive in its efforts to combat tax avoidance.

As the meeting progressed, members expressed interest in understanding the improvements in IRS capabilities since the IRA's implementation and discussed potential further investments and policy changes to build on the successes achieved thus far. The dialogue underscored the critical role of the IRS in maintaining a fair tax system and the ongoing efforts required to ensure compliance among the wealthiest taxpayers.