New US Speaker of the House Kevin McCarthy, R-Calif., speaks to reporters in Washington, Jan. 7, 2023.
John Cherry | reuters
House Republicans voted Monday night to reduce funding for the IRS, after a vow from the newly elected speaker Kevin McCarthy To repeal the money approved by Congress last year.
crossing the party line, bill will cancel Tens of billions allocated to the agency over the next decade through the Inflation Reduction Act passed in August.
The measure lacks support to pass in the Democratic-controlled Senate, and the White House opposes the bill. in a statement Released Monday.
More from Personal Finance:
More Americans take on month-to-month credit card debt as expenses remain high
Here Are 3 Money Moves You Should Make This Year, Say Financial Experts
If you want a higher salary, your chances may be better now than in 6 months
“It is not going to become law, but it makes a very strong political statement,” said Mark Everson, a former IRS commissioner and current vice president of AlliantGroup, noting that the partisan IRS split is good for the agency “long term.” Not there. Stability.”
The bill comes less than two weeks after Democratic members of the House Ways and Means Committee issued six years of former president Donald Trump’s tax returns, angering many Republican lawmakers.
Known as the Family and Small Business Taxpayer Protection Act, the new House Republican measure will increase in budget deficit More than $114 billion by 2032, according to the Congressional Budget Office.
IRS funding faces ongoing investigation
treasurer Janet Yellen in August Outlined priorities for new IRS funding Including plans to eliminate the backlog of unprocessed tax returns, improve customer service, overhaul technology and hire more workers.
However, the House Republican bill underscores the party’s continued pushback against Pres. Joe Bidenagenda, which includes more funding for the IRS. The agency is expected to deliver a funding plan in February each year. Yellen’s request,
agency is also Preparation of new commissionerDanny Werfel, who served President Barack Obama and President George W. Bush as IRS acting commissioner and the Office of the Comptroller of Management and Budget.
By winning the nomination Monday to serve as chairman of the House Ways and Means Committee, Rep. Jason Smith, R-Mo., said in a statement that the new IRS commissioner should “plan on spending a significant amount of time” before the committee answering questions.
Although the success or challenges of the upcoming tax-filing season could shape future discussions, the agency still has issues, Everson said.
“I hope that after the dust settles on this, both sides will take a step back, and find some way to work collaboratively and reform the tax administration, which is desperately needed,” he said.