Finally, Some Good Economic News
By David Henderson
From today’s Wall Street Journal, an article titled, “IRS Audits of Large Companies Decline for 3rd Year in Row.”
The article goes on to say:
According to 2008 IRS enforcement data released Monday, the IRS audited 15.3% of returns of corporations with assets of $10 million or more. That is the lowest audit coverage level since 2003 and down from a 20% coverage rate in 2005.
Why the decline? In part because of the tax rebates earlier in the year:
In addition, some enforcement staff were re-directed to help field calls from taxpayers related to tax rebates that Congress ordered as part of economic stimulus legislation.
In light of the effect of tax rebates on tax enforcement, maybe I’ll have to reconsider my view that tax rebates don’t stimulate the economy.