Don't Mess With Taxes

Some folks are calling for a new tax on financial transactions.

But if Congress has its way, the Internal Revenue Service might not have enough money to enforce existing tax laws.

Both these topics got closer looks last week at my other tax blog.

Occupy Wall Street protesters have been calling for a Robin Hood tax, a levy on financial transactions that supporters say would primarily affect higher-income investors. A transaction tax is not a new idea, but there's not a lot of support right now for it.

Even the head honcho at Treasury has dismissed a transaction tax and that was before the IRS had to deal with possible budget cuts.

If the House and Senate do slash the tax agency's funds, the IRS commissioner says the move ultimately will cost taxpayers in service and Uncle Sam in up to $4 billion in lost tax collections.

You can check out my new Bankrate Taxes Blog posts on most Tuesdays and Thursdays. And if you happen to miss them there, you can find a wrap-up here each Saturday.

You also might find these items of interest:

• Who's in the top 1 percent of earners
• Increase the IRS budget; No, don't!
• Capital gains tax: Past, present, future