The write-off is very east as mere symbolism of The House vote to rescind almost all the $80 billion IRS funding rise Congress approved last year. The bill has been passed by House Republicans and will be ignored by the Democrat-controlled Senate. This would likely be vetoed by President Biden if it miraculously got to Pres. Biden’s desk.
However, the House has voted to slash an amount of $71 billion from the budget of the agency over the next decade which is far from the end of the story. This is more likely just the first brawl in their battle that could result in substantial cuts in the IRS’s billion. budget $12.319 by the end of 2023, if they will limit its ability to enforce tax laws and make life easier for those honest tax filers.
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The Republicans might yet achieve their big goal of partly defunding the tax agency, but they might have to wait until the fall to claim their victory.
For you to understand what this is, let’s take a deep journey into the budgetary and legislative weeds. The IRS’s multi-year funding Congress included in the last year’s Inflation Reduction Act (IRA) very effectively which is immune from the ordinary annual process of appropriations. This can be directly cut to the only way in the way House Republicans attempted to do, with a fresh and new law that rescinds all of those and a part of that IRA spending plan.
Congress did describe in broad terms how the new money is going to be spent. Nearly the amount of $46 billion will go to enforcement, $25 billion will go to IRS operations, around $5 billion for the business systems modernization, and for about $3 billion for taxpayer services, this includes the hiring of more people to respond to their phones and process returns. The bill passed by the House this week would eliminate all that new funding except for the $8 billion in systems modernization and taxpayer services.
But unfortunately, the House bill is way far from the end of the battle. The money and budgets are fungible. Congress can effectively reverse the funding last year increasing by simply cutting the IRS’s annual budget.
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