Republican Proposal to Cut IRS Funding for Israeli Aid Package Criticized for Increasing Deficit

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Republican Proposal to Cut IRS Funding for Israeli Aid Package Criticized for Increasing Deficit

The GOP-controlled House is once again targeting the Internal Revenue Service (IRS), suggesting cutting its funding to provide emergency aid to Israel. Speaker Mike Johnson introduced the proposal, but it is unlikely to pass the Democrat-controlled Senate. Despite repeated Republican proposals to reduce IRS funding, the nonpartisan Congressional Budget Office (CBO) stated that such cuts would actually increase the deficit by $12.5 billion over the next decade. By cutting IRS funding, enforcement efforts could be hampered, resulting in fewer tax audits and less tax revenue collected. Additionally, the CBO estimated that Johnson's proposal, along with aid to Israel, would contribute approximately $26.8 billion to the deficit over a ten-year period. The IRS has been using the federal investment approved last year to strengthen enforcement, targeting high-income earners and corporations. Already, the agency has collected $160 million in back taxes from millionaires. Critics argue that cutting IRS funding would benefit tax cheaters and burden hardworking families. The investment in the IRS has also led to improvements in taxpayer services, including increased call response rates and faster refund processing times. The IRS is continuing its modernization efforts, such as developing a free tax filing program and digitizing paper-filed returns.