A massively fattened-up IRS will target and harass small businesses like nail salons and barber shops, noted ATR president Grover Norquist on Fox Business Network on Monday.
David Asman, host: “But also the scope of what the IRS can do, how they can snoop on everything that you do in life. Are the Republicans really okay with this?”
Grover Norquist: “I think you’re going to see Republicans reject it for the reason you just gave.
In order to pretend that they were going to raise money by magic and not have to pay for it with higher taxes, they said imagine if we spent $40 billion hiring more than 40,000 new IRS agents, going out and harassing people.
Now, mind you, big corporations are already super-audited, they already have their own lawyers to make sure they do everything quite correctly. This is going to go after self-employed people, small businesses.
The administration admits they’re going to go after cash-heavy businesses, people who do your nails, the barbershops. All of the small businesses in America. That’s who is going to have their own personal IRS agent assigned to harass them.”
[NOTE: As previously reported by CNBC, experts say a fattened-up IRS would go after small businesses that necessarily depend on cash transactions:
Certain small businesses may face an audit under the plan.
“I think the industries that should be concerned are those in cash,” said Luis Strohmeier, a Miami-based CFP and partner at Octavia Wealth Advisors.
He expects the agency to scrutinize cash-only small businesses like restaurants, retail, salons and other service-based companies.]
Asman: “And as we remember very well — and you’ve spoken on this eloquently — in the eyes of the IRS, you’re guilty until proven innocent. So a lot of these companies that will be invaded by these super-audits by the IRS police are innocent and probably will eventually be proven to be so, but in the meantime, they may be closed down and go out of business because of what the IRS does.
Norquist: “And it will cost you thousands of dollars to hire lawyers and accountants to defend ourself. Even if you’re completely, you know, not doing anything at all wrong, it still can bankrupt you because they threaten to attack you.”
Asman: “Right. “
Norquist: “Of course, they might decide if you stop contributing to Republicans, this audit might not be necessary.”
Asman: “Well, — remember Lois Lerner. It’s not beyond the realm of possibility.”
Watch the full video below: