House Republicans Pass Bill To Slash IRS Funding
House Republicans Pass Bill To Slash IRS Funding

Why Do House Republicans Pass Bill To Slash IRS Funding?

Why Do House Republicans Pass Bill To Slash IRS Funding? Washington, D.C. Even though the legislation is unlikely to move even further, House Republicans fulfilled a campaign promise on Monday by approving a bill that would cancel over $71 billion that Congress had paid the IRS. This was the first day of their majority in the House.

Democrats had strengthened the IRS over the following ten years to help pay for the top health and environmental priorities they passed the previous year and refill an organization that was straining to provide taxpayers with essential services and assure fairness in tax compliance.

The additional funding comes on top of what Congress gives the IRS each year through the appropriations process. In the autumn, GOP campaign commercials claimed that the increase would result in an army of IRS officers harassing hard-working Americans.

Why Do House Republicans Pass Bill To Slash IRS Funding?

The nonpartisan Congressional Budget Office predicted just before the vote that eliminating the additional IRS funds would result in a $114 billion rise in deficits over the following ten years.

Republicans, who had previously stated that reducing deficits would be one of their main priorities if they gained a majority, found themselves in an untenable situation. It provided an early illustration of how the Republican Party’s audacious campaign promises may become entangled in the complex realities of governance.

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The CBO’s prediction didn’t seem to impact Republican support, though. The additional funds Democrats gave the IRS last year, according to Rep. Jeff Duncan, R-S.C., was for one thing only.

Duncan said to target small businesses and hard-working Americans to collect money for reckless spending that has resulted in a $31 trillion national debt.

House Republicans Pass Bill To Slash IRS Funding
House Republicans Pass Bill To Slash IRS Funding

It is false for Duncan and other GOP members to claim that the additional funding will be used to hire 87,000 new agents to target Americans. The figure is based on a Treasury Department plan stating that if the IRS received the grant, much new staff would be hired during the following ten years.

However, not all of them will be employed at once, they won’t all be auditors, and many will replace the 50,000 workers who are anticipated to resign or retire in the upcoming years.

Rep. Steny Hoyer, D-Md., stated, “This debate about the IRS lends itself to being the most dishonest, demagogic rhetoric I have heard in the Congress at any moment in time.”

In his farewell address to the IRS in November, Charles Rettig, the agency’s previous commissioner, stated that the extra funds would benefit more than just bolstering tax enforcement. According to him, the investments would reduce the likelihood that “honest taxpayers will hear from the IRS or receive an audit notice even further.”

Since 2013, when it was discovered that the IRS under the Obama administration had used improper criteria to examine tea party groups and other organizations requesting tax-exempt status, further funding for the agency has been politically divisive.

Even though a subsequent 2017 report discovered that conservative and liberal groups were picked for inspection, the IRS was mainly on the losing end of congressional funding battles in the following years.

The wealthiest 1% of Americans hide around 20% of their income so they don’t have to pay taxes on it, which increases the tax burden on the middle class, according to the White House, which also predicted that President Joe Biden would veto the bill if it reached his desk.

The White House stated that House Republicans’ top aim in the economy is to make it easier for wealthy individuals and multi-billion-dollar corporations to avoid paying their fair share of taxes while making it more difficult for average, middle-class families to make ends meet.

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Francis Castro writes related to the Trending News Category. She manages to cover anything. Francis is our freelance contributor. Francis is responsible for covering reporting in Trending finance and business categories. Francis has experience of 5 years as reporter to Trending News insights.

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