IRS pleas for more funding from Congress finally paid off this summer when Democrats tucked an $80 billion boost for the agency into their flagship climate and health care law.
PUBLISHED 8:25 AM EDT Oct. 22, 2022IRS pleas for more funding from Congress — made over the years by one leader after another — finally paid off this summer when Democrats tucked an $80 billion boost for the agency into their flagship climate and health care law.
The GOP’s warnings are generally alarmist and misleading. The agency is not hiring an army of 87,000 “new agents” to target low- and middle-class Americans. Many hires will be used to replace some 50,000 IRS employee retirements in coming years. Others will become customer service representatives answering taxpayer phone calls.
House Minority Leader Kevin McCarthy, the speaker-in-waiting, has promised that if Republicans take the majority, passage of a bill While such a bill stands little chance of becoming law — President Joe Biden will retain veto power even if the GOP wins control of Congress — Republicans are unlikely to abandon the issue. Their greatest leverage over IRS funding will come when Congress takes up must-pass spending bills to finance government agencies or to avoid a government default on its debt.
“There’s crickets, is exactly the word, a crickets response from Democrats on this issue,” said Frank Clemente, executive director of Americans for Tax Fairness, a liberal-leaning advocacy group. The IRS will also be tasked with coming up with how to move forward with an expanded free-file system for taxpayers.
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