House Republicans have included an unusual provision in their aid package for Israel: a proposal to cut $14.3 billion from the Internal Revenue Service (IRS) budget. This move has raised concerns as it could potentially increase the national deficit. It is expected that Democrats will reject the bill outright.
The decision to include this spending cut highlights the extreme stance of the Republican Party, particularly under the leadership of Speaker Mike Johnson. Johnson argued that the US should not simply print money and send it overseas but should instead find a way to pay for the aid package. He emphasized that supporting Israel is more aligned with the national interest than funding the IRS.
The proposed bill would specifically target the additional IRS funding allocated in the Inflation Reduction Act. This includes cuts to tax enforcement, operations support, free filing for taxpayers, the office of tax policy, and the tax court. The Congressional Budget Office (CBO) has repeatedly warned that reducing IRS funding will encourage tax evasion and contribute to the deficit. In contrast, the CBO estimated that the IRS expansion under the Inflation Reduction Act would actually reduce the deficit by more than $100 billion.
Representative Richard Neal criticized the Republican view of IRS funding, stating that it protects the wealthy and corporations while ultimately costing taxpayers more. He highlighted that the IRS has recently recovered over $100 million in unpaid taxes from the wealthy and well-connected.
The bill also faced opposition in the Senate, as leaders argued that Congress should focus on passing a comprehensive emergency aid package for US allies worldwide. Senate Majority Leader Chuck Schumer stated that they believe all aid should be addressed together, including support for Israel, Ukraine, and the South Pacific. The inclusion of a controversial spending cut makes it more difficult to pass the bill.
Overall, the proposal to cut IRS funding as part of the aid package for Israel has sparked criticism and concerns about its impact on the national deficit. It remains to be seen how this issue will be resolved in Congress.
