GOP plan to fund Israel aid with IRS cuts would cost $90 billion, tax chief says

Seeking to pay for $14 billion in proposed aid to Israel sought by both parties, Speaker Mike Johnson (R-La.) on Monday unveiled legislation that would cut roughly $14 billion from funds recently approved by Democrats to expand the IRS. But, said the cuts would make the bill more expensive, by reducing audits of the wealthy and large corporations and hampering the agency’s ability to collect revenue that funds the government.

“This type of the cut, over the cost of the Inflation Reduction Act, would actually cost taxpayers $90 billion — that’s with a ‘B,’” Werfel told The Washington Post.with more than $1 million in income and more than $250,000 in outstanding tax debt. Starting in September, the IRS has started contacting about 1,600 new taxpayers in that category who collectively owe hundreds of millions of dollars in taxes, according to the Treasury Department.

“All of those funds go to increased scrutiny on tax evasion going on at the highest wealth, and that is millionaires and billionaires and large corporations and large complex corporations,” Werfel said. “When you reduce those audits, you reduce the amount of money that we can collect and return to the Treasury for other priorities. headtopics.com

Johnson also told Fox News on Tuesday: “If you put this to the American people, and they weigh the two needs, I think they are going to say standing with Israel and protecting the innocent is in our national interest, and a more immediate need than IRS agents.”Rep. John Rose (R-Tenn.) told The Post that he was “doubtful” the IRS budget cuts would prevent the agency from collecting as much revenue.

“I see this less about the leveraging the IRS and more about paying for something we all can agree on,” Rose said. Analysts see Johnson’s proposal as designed to win enough Republican support to pass a bill through the House — and then negotiate a compromise solution with the Senate and White House. headtopics.com

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