Democrats forgot to read the fine print on a bill and spoon-fed a huge victory to Republicans who want to kill the IRS.
The Wall Street Journal is reporting that the IRS’s tax enforcement fund, which allowed the IRS to better audit corporations and the wealthiest households, is now $20 billion in the red – leaving the fund’s future up in the air.
In 2022, when Democrats had a trifecta hold over the government, they put $80 billion toward the IRS, which was supposed to help the agency hire, modernize, and enforce through the next decade.
When Republicans took the House back in 2023, they started making cuts to that fund to protect their rich friends and corporate interests, placing a $1.4 billion cut and then another $20 billion cut into deals they made with Biden last year.
This year’s stopgap funding bill – meant to keep the government open through December 20 – kept the same $20 billion cut in the text. Congressional Republicans noticed that the Democrats didn’t notice its inclusion and watched silently with glee as yet another massive slash was made to one of the most important agencies we have.
“Our concern right now is that because of this risk to the IRS and the uncertainty of it, the IRS is going to potentially have to make dramatic decisions about stopping hiring,” Deputy Treasury Secretary Wally Adeyemo told the Journal, “They are running low on enforcement dollars today.”
Adeyemo also noted that the cuts will force the IRS to do 2,000 fewer large corporate audits over the next five years and 6,000 fewer audits of wealthy individuals.
Written by Malcolm Ferguson for The New Republic ~ November 28, 2024
