The U.S. Department of the Treasury has published an analysis indicating that the Inflation Reduction Act (IRA) has yielded a substantial return on investment.

In a press release, the Department of the Treasury detailed that the Internal Revenue Service (IRS) anticipates that its funding could augment revenue by as much as $561 billion over the forthcoming decade. If the Administration's proposals to refund the IRA are realized, projected revenues could ascend to approximately $851 billion. The report also examined potential impacts of rescinding funding for the IRA, suggesting that curtailing investments by $20 billion could decrease recorded revenues by more than $100 billion.

According to this analysis, the IRS plans to intensify its tax enforcement against large corporations and affluent taxpayers in order to boost collected revenues. The IRS has already garnered over $500 million in taxes through this initiative. A portion of IRA investments were allocated to modernize outdated IRS technology and enhance their tax collection efficiency. The budget cuts faced by the IRS from 2010 to 2019 resulted in audits on millionaires decreasing by over 70%, contributing to an annual tax gap exceeding $600 billion.

The press release highlighted that expanded audits against large corporations and wealthy taxpayers have aided in collecting tax debt from 1,600 millionaires with over $250,000 in back taxes. The investment structure has also restrained increases in audit rates for small businesses and taxpayers earning less than $400,000 annually.