House Republicans take aim at IRS, voting to rescind billions in funding
WASHINGTON (Gray DC) - In their first move as the party in power, House Republicans voted to strip the IRS of $71 billion in funding over the next decade.
It’s a move that directly reverses the $80 billion dollars in IRS funding democrats included in the Inflation Reduction Act, which aimed to improve things like customer service, and audits of top earners.
“The Inflation Reduction Act, which I opposed, provided a lot more resources to the IRS,” said South Dakota Representative Dusty Johnson (R). “Now some of those resources, like customers services, make sense to me. Others like enforcement went too far.”
Treasury Secretary Janet Yellen debunked the claim that the money would go toward enforcement agents targeting the middle class.
“I’ve directed that enforcement resources will not be used to raise audit rates for households making under $400,000,” said Yellen.
For Johnson, the move is an attempt to right the course of reckless democratic spending.
“Any time Republicans step forward and start to claw back some of that unnecessary spending, they’re going to howl about it,” said Johnson, “But the reality is this is what the American people voted for”
The move could end up costing more than it saves.
With less oversight and fewer watchdogs - The Congressional Budget Office estimates the move would spark a reduced tax revenue of $186 billion dollars, which would add $114 billion to our growing deficit.
Tax expert Samantha Jacoby with the Center on Budget and Policy Priorities is also concerned by the bill.
“It would basically perpetuate the status status quo of an understaffed IRS dysfunction where people can’t get their questions answered,” said Jacoby. “Wealthy people who cheat on their taxes would get a pass”
The bill is unlikely to see movement in the democratic-controlled senate, or get a signature from President Biden.
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