search
Sections List
American Journal News

House Republicans' first bill would let tax cheats off the hook for $185 billion

Their plan to partially defund the IRS would cost the government a net $114 billion in lost revenue over a decade, the nonpartisan Congressional Budget Office estimates.

By Josh Israel - January 10, 2023
Share
A sign outside the Internal Revenue Service building in Washington, on May 4, 2021
A sign outside the Internal Revenue Service building in Washington, on May 4, 2021. The Internal Revenue Service says it is conducting a comprehensive review of safety at its facilities. The action comes in response to an increasing number of threats borne of conspiracy theories that agents were going to aggressively target middle-income taxpayers. (AP Photo/Patrick Semansky)

House Republicans voted on Monday to cut funding for the Internal Revenue Service’s efforts to crack down on tax evasion by wealthy individuals and large corporations. An estimate by the nonpartisan Congressional Budget Office predicts the bill would cost the government more than $185 billion in lost revenue over the next decade — all money that the Treasury Department is owed by individual and corporate taxpayers.

The Family and Small Business Taxpayer Protection Act, which passed the House along party lines, 221-210, would cancel $71 billion in funds over 10 years. The funding, already appropriated in the 2022 Inflation Reduction Act to modernize and boost enforcement by the IRS, is expected to be more than offset by the additional collected revenue. In total, the CBO estimates the GOP cuts would actually result in the government ending up $114 billion poorer.

The $71 billion is set to allow the cash-strapped agency to replace retiring staff, modernize systems, and improve enforcement of existing tax laws. Treasury Secretary Janet Yellen ordered in August that the funds not be used to audit anyone making under $400,000 a year.

But Republican lawmakers unanimously opposed the Inflation Reduction Act, with many falsely claiming that its IRS funding would be used to hire an “army” of 87,000 new agents to “spy on” and target the middle class and small businesses with audits. In reality, much of the money would go to replace the 50,000 IRS employees eligible to retire within five years.

After the GOP won a narrow majority in the midterm elections, incoming Republican House Speaker Kevin McCarthy announced that his caucus’ first priority would be to “repeal the 87,000 IRS agents.”

The vote to cut funding to the IRS came just days after McCarthy, as one of his concessions to far-right critics within his own party whose votes he needed to become speaker, agreed to push a 10-year plan to balance the federal budget. Such a plan would require draconian spending cuts, likely including a reduction in spending on safety net programs like Social Security and Medicare.

Enactment of the legislation would make that job even more difficult, requiring another $114 billion in cuts to federal programs to offset the cuts in federal tax revenue. Republicans have pushed to protect defense spending, meaning these cuts would likely have to come from discretionary spending on domestic programs.

The Center for a Responsible Federal Budget, a fiscally conservative nonprofit, warned Monday that passage of the bill “would increase deficits by more than $100 billion over the next decade while encouraging tax cheating, expanding the tax gap, and undermining a policy supported by every President since Ronald Reagan, including Donald Trump.” The annual tax gap is the difference between what is owed to the IRS and what is actually paid on time.

Chuck Marr, vice president for federal tax policy for the progressive Center for Budget and Policy Priorities, also blasted the bill, calling it “a misleading gambit to protect interests of wealthy tax cheats.”

“A key element of a healthy, functioning democracy is a transparent tax system that is fairly enforced so that people and corporations pay what they owe and the well-heeled and powerful cannot flout their responsibility to pay their taxes,” Marr wrote. “Efforts to protect wealthy tax cheats and purposely undermine the IRS’s ability to enforce tax laws are anti-democratic and should be resoundingly rejected.”

White House chief of staff Ron Klain retweeted media coverage of the CBO’s scoring on Monday, observing that the GOP bill was “Good for tax cheats, bad for the economy.”

President Joe Biden said he plans to veto the legislation, though it’s unlikely to reach his desk with a Democratic-controlled Senate.

Published with permission of The American Independent Foundation.


Read More
Biden calls for expanded child tax credit, taxes on wealthy in $7.2 trillion budget plan

Biden calls for expanded child tax credit, taxes on wealthy in $7.2 trillion budget plan

By Jennifer Shutt, States Newsroom - March 11, 2024
December jobs report: Wages up, hiring steady as job market ends year strong

December jobs report: Wages up, hiring steady as job market ends year strong

By Casey Quinlan - January 05, 2024
Biden’s infrastructure law is boosting Nevada’s economy. Sam Brown opposed it.

Biden’s infrastructure law is boosting Nevada’s economy. Sam Brown opposed it.

By Jesse Valentine - November 15, 2023
Biden infrastructure law helps Pennsylvania’s small manufacturers

Biden infrastructure law helps Pennsylvania’s small manufacturers

By Oliver Willis - October 20, 2023
GOP senators try to stop EPA rule projected to save consumers millions of dollars

GOP senators try to stop EPA rule projected to save consumers millions of dollars

By Oliver Willis - October 20, 2023
Democratic bill would increase housing access for formerly incarcerated Michigan residents

Democratic bill would increase housing access for formerly incarcerated Michigan residents

By Alyssa Burr - October 18, 2023
AJ News
Latest
Big investors are buying up single-family homes. Sen. Sherrod Brown has a plan to stop them.

Big investors are buying up single-family homes. Sen. Sherrod Brown has a plan to stop them.

By Jesse Valentine - July 09, 2024
New Mexico Senate nom Nella Domenici earned up to $1 million renting out Connecticut home

New Mexico Senate nom Nella Domenici earned up to $1 million renting out Connecticut home

By Jesse Valentine - July 08, 2024
GOP’s Mark Robinson blames bad fathers for social ills despite own son’s criminal record

GOP’s Mark Robinson blames bad fathers for social ills despite own son’s criminal record

By Jesse Valentine - July 03, 2024
Kelly Ayotte’s history of backing Medicare cuts could be hurdle in governor’s race

Kelly Ayotte’s history of backing Medicare cuts could be hurdle in governor’s race

By Jesse Valentine - July 02, 2024
Texas Republican Ken Paxton enlisted outside group to gut rights for pregnant workers

Texas Republican Ken Paxton enlisted outside group to gut rights for pregnant workers

By Jesse Valentine - June 24, 2024
Ted Cruz leverages Trump conviction on podcast for own personal gain

Ted Cruz leverages Trump conviction on podcast for own personal gain

By Jesse Valentine - June 11, 2024
Arizona Republican Kari Lake proposes massive cuts to Medicaid and Medicare

Arizona Republican Kari Lake proposes massive cuts to Medicaid and Medicare

By Jesse Valentine - June 10, 2024
Virginia U.S. Senate candidate Hung Cao says workplace diversity is ‘Marxism’

Virginia U.S. Senate candidate Hung Cao says workplace diversity is ‘Marxism’

By Jesse Valentine - June 06, 2024
Republican Bernie Moreno’s rags-to-riches story exposed as a lie

Republican Bernie Moreno’s rags-to-riches story exposed as a lie

By Jesse Valentine - May 24, 2024
What happens to clinics after a state bans abortion? They fight to survive.

What happens to clinics after a state bans abortion? They fight to survive.

By Chabeli Carrazana and Shefali Luthra - May 22, 2024
Former Sen. Kelly Ayotte took job at Caterpillar after tax fraud probe

Former Sen. Kelly Ayotte took job at Caterpillar after tax fraud probe

By Jesse Valentine - May 21, 2024
Alabama OB-GYN residencies dropped over 20% after Dobbs, state abortion ban, says analysis

Alabama OB-GYN residencies dropped over 20% after Dobbs, state abortion ban, says analysis

By Alander Rocha, Alabama Reflector - May 21, 2024
House GOP celebrates National Police Week while pushing to defund local law enforcement

House GOP celebrates National Police Week while pushing to defund local law enforcement

By Jesse Valentine - May 16, 2024
Evolution denier Mark Robinson could reshape North Carolina’s education system

Evolution denier Mark Robinson could reshape North Carolina’s education system

By Jesse Valentine - May 16, 2024
Republican Jay Ashcroft backs anti-abortion clinics that push lies and disinformation

Republican Jay Ashcroft backs anti-abortion clinics that push lies and disinformation

By Jesse Valentine - May 14, 2024
Republican Sam Brown’s assault on teacher unions could backfire

Republican Sam Brown’s assault on teacher unions could backfire

By Jesse Valentine - May 09, 2024
Florida abortion ban puts GOP Rep. Anna Paulina Luna’s anti-choice views in spotlight

Florida abortion ban puts GOP Rep. Anna Paulina Luna’s anti-choice views in spotlight

By Jesse Valentine - May 07, 2024
Trump leaves door open to banning medication abortion nationwide

Trump leaves door open to banning medication abortion nationwide

By Jennifer Shutt, States Newsroom - April 30, 2024
Republican Caroleene Dobson wants Alabama abortion ban to go nationwide

Republican Caroleene Dobson wants Alabama abortion ban to go nationwide

By Jesse Valentine - April 30, 2024
Ohio Gov. DeWine said he didn’t know of millions in FirstEnergy support. Is it plausible?

Ohio Gov. DeWine said he didn’t know of millions in FirstEnergy support. Is it plausible?

By Marty Schladen, Ohio Capital Journal - April 29, 2024
GOP Rep. Zach Nunn suggests laws against hate crime aren’t needed

GOP Rep. Zach Nunn suggests laws against hate crime aren’t needed

By Jesse Valentine - April 15, 2024
GOP Senate candidate Hung Cao blames racial equity for Baltimore bridge tragedy

GOP Senate candidate Hung Cao blames racial equity for Baltimore bridge tragedy

By Jesse Valentine - March 29, 2024
GOP Rep. Jennifer Kiggans donates thousands to far-right extremists

GOP Rep. Jennifer Kiggans donates thousands to far-right extremists

By Jesse Valentine - March 08, 2024
Ohio senate candidate Bernie Moreno: “Absolute pro-life no exceptions.”

Ohio senate candidate Bernie Moreno: “Absolute pro-life no exceptions.”

By Jesse Valentine - March 07, 2024
Anti-China Republicans pocket thousands from Chinese owned conglomerate

Anti-China Republicans pocket thousands from Chinese owned conglomerate

By Jesse Valentine - March 04, 2024
Republican Eric Hovde makes inconsistent statements about family history

Republican Eric Hovde makes inconsistent statements about family history

By Jesse Valentine - February 26, 2024
Republican David McCormick invests millions in website that platforms Holocaust denial

Republican David McCormick invests millions in website that platforms Holocaust denial

By Jesse Valentine - February 09, 2024
Lawmakers will again take up bills expanding, tightening gun laws

Lawmakers will again take up bills expanding, tightening gun laws

By Annmarie Timmins, New Hampshire Bulletin - January 31, 2024
UAW delivers rousing presidential endorsement for Biden over ‘scab’ Trump

UAW delivers rousing presidential endorsement for Biden over ‘scab’ Trump

By Ashley Murray, States Newsroom - January 24, 2024
Republicans Sam Brown and Jeff Gunter sling mud in Nevada senate primary

Republicans Sam Brown and Jeff Gunter sling mud in Nevada senate primary

By Jesse Valentine - January 17, 2024
A Young Texas Woman Almost Died Due To The Texas Abortion Bans – Now She’s Battling To Save Other Women

A Young Texas Woman Almost Died Due To The Texas Abortion Bans – Now She’s Battling To Save Other Women

By Bonnie Fuller - January 10, 2024
Health care legislation preview: Maryland advocates want to focus on access, patients in 2024 session

Health care legislation preview: Maryland advocates want to focus on access, patients in 2024 session

By Danielle J. Brown, Maryland Matters - January 08, 2024
How GOP senate hopefuls try to excuse the  January 6 insurrection

How GOP senate hopefuls try to excuse the  January 6 insurrection

By Jesse Valentine - January 05, 2024
NH lawmakers will be taking up major voting bills this year. Here are some to watch for.

NH lawmakers will be taking up major voting bills this year. Here are some to watch for.

By Ethan DeWitt, New Hampshire Bulletin - January 04, 2024
Republican US Senate candidates want to make Trump’s tax cuts permanent 

Republican US Senate candidates want to make Trump’s tax cuts permanent 

By Jesse Valentine - December 22, 2023
Rand Paul went all in on the Kentucky governor’s race. It didn’t work.

Rand Paul went all in on the Kentucky governor’s race. It didn’t work.

By - December 15, 2023
Texas governor and attorney general do little to curb state’s chemical plant crisis

Texas governor and attorney general do little to curb state’s chemical plant crisis

By Jesse Valentine - December 08, 2023
Likely GOP Senate candidate Eric Hovde proposed tax hike for poorer workers and retirees

Likely GOP Senate candidate Eric Hovde proposed tax hike for poorer workers and retirees

By Jesse Valentine - December 07, 2023
Whitmer signs specific criminal penalties for assaulting health care workers into law

Whitmer signs specific criminal penalties for assaulting health care workers into law

By Anna Liz Nichols, Michigan Advance - December 06, 2023
105 Republicans voted to expel Santos for things Trump has also done

105 Republicans voted to expel Santos for things Trump has also done

By Jesse Valentine - December 05, 2023
For Texas Sen. Ted Cruz, another Trump term is another chance to kill Obamacare

For Texas Sen. Ted Cruz, another Trump term is another chance to kill Obamacare

By Jesse Valentine - December 04, 2023
Florida Sen. Rick Scott backs Donald Trump in revived push to repeal Obamacare

Florida Sen. Rick Scott backs Donald Trump in revived push to repeal Obamacare

By Jesse Valentine - November 30, 2023
Tate Reeves took donations from power company that hiked customer rates

Tate Reeves took donations from power company that hiked customer rates

By Jesse Valentine - November 06, 2023
Daniel Cameron ran on depoliticizing the Kentucky AG’s office. He made it more political.

Daniel Cameron ran on depoliticizing the Kentucky AG’s office. He made it more political.

By Jesse Valentine - November 03, 2023
Republican operatives sound every alarm on current trajectory of 2023 governor’s race

Republican operatives sound every alarm on current trajectory of 2023 governor’s race

By Adam Ganucheau, Mississippi Today - October 24, 2023
State university board of governors vote to freeze tuition for Pennsylvania residents

State university board of governors vote to freeze tuition for Pennsylvania residents

By Peter Hall - July 17, 2024
On outskirts of RNC, Heritage Foundation touts controversial Project 2025 plan

On outskirts of RNC, Heritage Foundation touts controversial Project 2025 plan

By Ashley Murray, States Newsroom - July 17, 2024
Abortion amendment supporters ask Arkansas Supreme Court to overturn Secretary of State’s rejection

Abortion amendment supporters ask Arkansas Supreme Court to overturn Secretary of State’s rejection

By - July 16, 2024
Gov. Greg Abbott defends trip to East Asia during Hurricane Beryl

Gov. Greg Abbott defends trip to East Asia during Hurricane Beryl

By Jasper Scherer, Texas Tribune - July 16, 2024
FactCheck: Republican Sheehy revives discredited abortion claim in Senate race

FactCheck: Republican Sheehy revives discredited abortion claim in Senate race

By Matt Volz - July 15, 2024
Lawsuit seeks to overturn Michigan’s ban on conversion therapy for minors

Lawsuit seeks to overturn Michigan’s ban on conversion therapy for minors

By Jon King, Michigan Advance - July 15, 2024