IRS Budget Cuts Proposed by Republicans
Republican lawmakers have proposed cutting the budget of the Internal Revenue Service by upwards of 24% – removing bonuses and video productions considered by most as excessive and an unnecessary use of government funds.
The House Republican proposal – introduced in Congress, yesterday – would create new restrictions on the IRS, which would withhold 10 percent of the agency’s enforcement budget. That is, until the IRS Inspector General confirms that it has implemented all of the recommendations made in a prior report; on the agency’s scrutiny of small-government groups (which has made big headlines in recent months).
Representative Charles Boustany said, “We are going to cut its budget until they come clean. It’ll force them to provide the information in our oversight efforts but also to account for every dime that’s spent.” The Republican budget proposal would be the smallest working budget since fiscal year 2001. Democrats believe the Republican approach is short-sighted, not surprising, and believe it will hurt the collection of tax.
Treasury Secretary Jacob Lew has said that each dollar spent on IRS enforcement, typically yields $6 for the Treasury. Using that metric, the proposed $1.5 billion cut to enforcement would cost $9 billion in revenue. A House appropriations subcommittee will consider the plan, today.
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