GOP proposes reallocating the increased IRS budget passed under the Inflation Reduction Act to Israel
As a government shutdown looms, GOP leaders have proposed reallocating the IRS’s increased budget to Israeli defence.
As one of his first acts as Speaker of the House, Representative Michael Johnson has unveiled his budget proposal to keep the government open. A staunch conservative, Speaker Johnson’s plan is likely to repel any chance of bipartisan support, dooming its passage in the Democratic-controlled Senate.
One of the measures included in the funding package is a $14 billion cut to the IRS budget to offset new spending for Israel. Speaker Johnson has made his position on federal spending clear: he would like to see it decreased. For that reason, cutting the IRS budget would allow increased spending to be allocated to Israel without increasing the federal budget. However, he may have trouble convincing members of his caucus that increasing funding for Israel must be contingent on budget cuts elsewhere.
Democrats have made their opposition clear. The IRS received a boost in its annual budget under the Inflation Reduction Act passed in 2022, with a primary objective of cracking down on tax evasion. The Republicans have made this increase in the tax authorities budget a major target, and this plan is another attempt to have that additional funding reduced. Democrats, both leaders and party operatives, have responded with outrage at both aspects of the proposal.
Why was the IRS budget increased?
“A $1 increase in spending on the IRS’s enforcement activities results in $5 to $9 of increased revenues,” reported the Congressional Budget Office when evaluating President Biden’s proposal. While the GOP has made attempts to scare voters into thinking that the average taxpayer will see a greater number of audits, the increased IRS resources aim to curtail tax evasion among the highest-income earners. In September, the IRS stated that efforts would be focused on “taxpayers with total positive income above $1 million that have more than $250,000 in recognized tax debt.” Already, 1,600 taxpayers who fall into this category have been identified, and according to the tax agency, they are thought to “owe hundreds of millions of dollars in taxes.”
Public opinion shifts as Washington debates
The question that remains is whether or not Republicans will approve increased funding to Israel, which many in the party have made clear is a top priority, if cuts are not made to other programs and agencies.
This debate comes as the public moves farther away from their representatives on the issue of funding Israel and, to a greater extent, Ukraine. While special interests that have significantly benefitted from these conflicts have put pressure on lawmakers, it is becoming clear that sufficient arguments as to why these funds should be sent overseas have not been made to voters. A recent poll conducted by CBS found that 85 percent of respondents were worried about a broader war in the region, and a majority of Democratic, Republican, and independent voters said that the US should not provide more military assistance to Israel.
Additionally, the public has shown concern for Palestinian civilians, with the same poll finding 70 percent of Democrats, 59 percent of independents, and 41 percent of Republicans supporting greater humanitarian aid for Gaza.