Site icon Dr. Chao Wu

Number issue with IRS commissioner Werfel

While driving to work and listening to NPR, IRS commissioner said: “For every $100 million taken from the I.R.S., the deficit grows by $600 million over 10 years,” Mr. Werfel said.”

I support we need to give more funding to IRS. However, what Werfel said does not make sense and nobody questioned him unfortunately.

Cost: 100 million for ten years= 1000 millions (given the context, it should be $100 million per year)

Saving: 600 million dollars over 10 years.

So, we still lose 400 million dollars, let alone that 600 million dollars are estimated.

I suppose people in that hearing were doing math differently: 600 – 100 = 500 millions extra revenue for the government.

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