House GOP proposes IRS funding cuts, eliminating free tax filing system

Republican appropriators in the House of Representatives are proposing to scale back IRS funding and eliminate the free online tax filing system that the Treasury Department recently made permanent and has promised to expand to even more states.

The House Appropriations Committee's latest Financial Services and General Government (FSGG) bill promises “[prohibit] funds that will be used for the IRS to create government-run tax preparation software that Congress has not authorized.”

It also cuts 2025 IRS funding by $2.2 billion below fiscal year 2024 levels to $10.1 billion, specifically reducing enforcement funding by $2 billion.

FSGG Subcommittee Chairman Dave Joyce (R-Ohio) said in a statement Monday that the bill “takes steps to prevent agencies like the IRS from unfairly targeting hardworking Americans.”

Democrats immediately rejected the IRS cuts.

“If given the chance, Republicans will deprive law-abiding taxpayers of the choice to file their taxes for free with the IRS's new direct file program by shutting it down before it expands nationwide,” Senate Finance Committee Chairman Ron Wyden (D-Ore). .) said in a statement on Tuesday.

House Appropriations Committee member Rosa Delauro (D-Conn.) said Wednesday that the plan “includes approximately 80 new, problematic or pointless policy makers.”

The proposed cuts to the IRS follow an initial $80 billion funding increase for the agency passed as part of Democrats' 2022 Inflation Reduction Act (IRA), which Republicans have cut in the form of annual appropriations cuts .

Republicans and Democrats agreed to cut about $20 billion of the $80 billion in cash in the form of annual appropriations cuts last year, as part of the deal to avoid a default on U.S. debt.

For fiscal year 2023, Republicans have secured a $275 million (or 2 percent) cut in IRS funding.

The debt ceiling deal reached last June immediately cost $1.4 billion in IRA funding, with an unwritten agreement to take back $10 billion in fiscal 2024 and 2025. That agreement was later updated to recover the full $20 billion in the current budget year.

At the end of last year, the IRS had issued only about 5.6 percent of its total IRA funding. Only 1 percent of the enforcement budget – its largest component and dependent on the specialized recruitment of experienced auditors – had been allocated as of December 31.

Republicans voted to eliminate the IRS's free online filing program as soon as they retook the House of Representatives last year, a move that was blocked by Democratic control of the Senate.

Related Posts

  • Business
  • June 25, 2024
  • 4 views
  • 4 minutes Read
Elon Musk welcomes third child with Neuralink CEO. Here you can see how many children he has now.

Elon Musk had a third child with an executive at Neuralink, his brain implant company. Musk and Neuralink Corp. director of special projects Shivon Zilis welcomed the baby earlier this…

  • Business
  • June 25, 2024
  • 4 views
  • 3 minutes Read
Paramount+ will increase prices for its streaming plans

Big global is raising the price of its flagship streaming service as the company looks to turn around its business. The company said Monday that it will increase the price…

Leave a Reply

Your email address will not be published. Required fields are marked *

You Missed

Connect Money scores $8 million to enable non-bank companies to offer integrated financial services

  • June 25, 2024
Connect Money scores $8 million to enable non-bank companies to offer integrated financial services

One win, one clean sheet, but too many missed opportunities – USMNT needs to be more ruthless

  • June 25, 2024
One win, one clean sheet, but too many missed opportunities – USMNT needs to be more ruthless

Meet Jordan Bardella, the man who could be France's next Prime Minister

  • June 25, 2024
Meet Jordan Bardella, the man who could be France's next Prime Minister

Copa America 2024 schedule, live stream: where Argentina vs. Chile can be seen

  • June 25, 2024
Copa America 2024 schedule, live stream: where Argentina vs.  Chile can be seen

Julian Assange, founder of WikiLeaks, pleads guilty to violating the Espionage Act

  • June 25, 2024
Julian Assange, founder of WikiLeaks, pleads guilty to violating the Espionage Act

How to customize your TV screensavers

  • June 25, 2024
How to customize your TV screensavers

Angel Reese leads the way in Sky's rivalry victory over Fever's Caitlin Clark

  • June 25, 2024
Angel Reese leads the way in Sky's rivalry victory over Fever's Caitlin Clark

A Maryland couple 'walked for hours' before dying in the heat of the Hajj

  • June 25, 2024
A Maryland couple 'walked for hours' before dying in the heat of the Hajj

A Hidden Treasure in the Milky Way — Astronomers discover ultra-bright X-ray source

  • June 25, 2024
A Hidden Treasure in the Milky Way — Astronomers discover ultra-bright X-ray source

India's Zyod is raising $18 million to expand its tech-enabled fashion manufacturing to more countries

  • June 25, 2024
India's Zyod is raising $18 million to expand its tech-enabled fashion manufacturing to more countries

Elon Musk welcomes third child with Neuralink CEO. Here you can see how many children he has now.

  • June 25, 2024
Elon Musk welcomes third child with Neuralink CEO.  Here you can see how many children he has now.