Newly Aligned House Republicans Vote In Vain To Cut IRS Funding
House Republicans voted to cut funding for the Internal Revenue Service in Monday, in their first move since the historic marathon vote which culminated in Rep. Kevin McCarthy, R-Calif., winning speakership.
Republicans were making good on a long-held campaign promise to pass legislation to rescind the bulk of an IRS funding boost signed into law by Democrats last year, marking the first bill passed by the GOP-controlled House this Congress.
The bill is unlikely to see action in the Democratic-controlled Senate, and would almost certainly be vetoed by President Joe Biden. It passed in a party-line 221-210 vote on Monday night.
"With their first economic legislation of the new Congress, House Republicans are making clear that their top economic priority is to allow the rich and multi-billion dollar corporations to skip out on their taxes while making life harder for ordinary, middle-class families that pay the taxes they owe," the Office of Management and Budget said in a statement, blasting Republican's judgment.
The new Republican majority is publicly seeking to undercut the policy accomplishments of Democrats over the past two years when they controlled both Congress and the White House.
A boost of about $80 billion in IRS funding spread over a decade was generally aimed at upping high-income enforcement. The funding was included in last year's Inflation Reduction Act, Democrats' sweeping tax, health, and climate bill.
The Republican bill to rescind the funding is barely longer than one page. It directs any "unobligated balances of amounts appropriated or otherwise made available" to the IRS from the Inflation Reduction Act to be rescinded.
Shortly after winning his speaker position early Saturday, McCarthy reiterated his pledge to make defunding the IRS the first bill of the Republican majority.
"The government should be here to help you, not go after you," he said at the time.
Republicans have repeated false claims that the 87,000 new IRS employees, who would be added over a decade, would be "agents."
The Congressional Budget Office estimated Monday that the legislation would eliminate about $71 billion of the total $80 billion that was allocated for the IRS but would reduce tax revenue by about $186 billion, translating to a $114 billion increase in deficits over the next decade.
The Biden administration has promised to prioritize using the additional funding to improve customer service at the I.R.S. so that it is easier for taxpayers to get answers to questions. It has also pledged that audit rates for taxpayers earning less than $400,000 a year will not go up.
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