House Wants To Cut $2.2b From IRS Budget And End Free Tax Filing Setup

( – House Republicans are taking on the IRS once again. When Democrats approved $80 billion in funding meant to bolster the agency over the next decade, the House GOP approved a bill that would see the tax department abolished altogether. Then, Republicans were able to get Democrats to agree to rescind $20 billion in funding to pass spending bills. Now, the House is looking to slash funds from the agency for next year.

On June 4, the House Appropriations Committee released its fiscal year 2025 (FY25) appropriations bill. According to Chairman Tom Cole (R-OK), it would “rei[n] in wasteful spending and takes steps to prevent agencies like the IRS from unfairly targeting hardworking Americans.” It would allocate $11.1 billion to the tax agency, which is $2.2 billion less than FY24’s budget.

Additionally, in the allocation stipulations, enforcement funding would see a $2 billion cut. Rep. Dave Joyce (R-OH) said that while the bill cuts $2 billion from the agency, he wants to remind other members that the agency still has more than $40 billion it can use from the Inflation Reduction Act.

One of the major components of the bill would prevent the IRS from targeting any American simply for their associations. For example, the agency can’t target groups based on ideologies or individuals for expressing their First Amendment rights. This likely stems from a 2023 report from the House Judiciary Committee, which accused the IRS of committing “alarming civil liberties abuses,” including targeting conservative groups applying for tax-exempt status.

Democrats had a field day with the bill. Rep. Steny Hoyer (D-MD) issued a news release in which he says the legislation does nothing but “continues their assault on the [IRS] and its ability to enforce current tax laws and collect legally owed revenue.” Rep. Rosa DeLauro (D-CT) said Republicans are in the pockets of wealthy Americans and big corporations.

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