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Republicans Slam Controversial IRS Funding, Force Biden Administration on Defensive

Republicans Slam Controversial IRS Funding, Force Biden Administration on Defensive

One of the most controversial components of the Inflation Reduction Act of 2022 was the inclusion of a provision that gives the Internal Revenue Service (IRS) $80 billion in additional funding. Now, Republicans have gone on the offensive.

According to a new Financial Times report, numerous Capitol Hill Republicans have attacked the measure in recent days.  Longtime Senator Chuck Grassley (R-IA) -- who is up for re-election this year -- asked, “Are they going to have a strike force that goes in with AK-15s already loaded ready to shoot some small business person in Iowa?”

Grassley also said he believes the funding will be used to go after "middle class and small business people," something Senate Majority Leader Chuck Schumer (D-NY) and the President Biden administration have assured the American people will not happen.

Senator Ted Cruz has also weighed in, posting a divisive Tweet that simply says, "Abolish the IRS."

FT noted specifically that "Republican attacks have put the Biden administration on the defensive, forcing them to make it clear that the funding would not and should not be used for more audits on Americans earning less than $400,000 per year."

Intriguingly, IRS Commissioner Charles Rettig -- who was appointed by former President Donald Trump -- fully supports the measure, saying:

“We are the greatest country in the world, yet the agency that touches more Americans than any other continually struggles to receive sufficient resources to fulfill its important mission. The IRS has for too long been unable to pursue meaningful, impactful examinations of large corporate and high-net-worth taxpayers to ensure they are paying their fair share."

Furthermore, prior to the passing of the bill, bipartisan support came from former IRS heads. 

Fred Goldberg, who headed the agency under former President George H. W. Bush, joined President Bill Clinton's IRS head, Charles Rossotti, and John Koskinen, who led the IRS under the President Barack Obama administration in signing a statement supporting the new proposed legislation. 

In their lengthy statement, the three ex-commissioners strongly backed the funding, as it will allow the IRS to both modernize and focus more resources on catching white-collar tax evaders:

“The sustained, multi-year funding contained in the reconciliation package is critical to help the agency rebuild. That will mean vastly improved services for taxpayers, who will be able to interact with a modernized IRS in a digital way, whose questions will be answered and issues resolved promptly and fairly, and who will find it simpler to get access to the benefits and credits to which they are entitled,” the commissioners wrote.

“It will also mean the capacity to enforce the tax laws against sophisticated taxpayers who today evade their tax obligations freely, because they know that the IRS lacks the tools it needs to pursue them."

Soon after the Inflation Reduction Act was signed into law, Janet Yellen gave the IRS a six-month deadline to present its "modernization plan."

What do you think about the IRS's controversial new funding?

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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