Republicans' IRS Plan Backfires

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House Republicans' plan to fund an aid package to Israel by cutting the Internal Revenue Service (IRS) budget could end up adding billions of dollars to the nation's deficit in the next decade, according to the Congressional Budget Office (CBO).

GOP lawmakers revealed a plan on Monday that would provide $14.3 billion in aid to Israel by slashing into IRS funding, including by using some of the increased funding designated for the agency through President Joe Biden's Inflation Reduction Act. House Republicans have long sought to reduce the IRS's budget, claiming that doing so would reduce overall government spending.

The nonpartisan CBO said on Wednesday, however, that Republican's plan to cut IRS funding could lead to a $26.8 billion reduction in revenue over the next 10 years—resulting in an additional $12.5 billion to the nation's deficit.

Republicans' IRS Plan Backfires
Speaker of the House Mike Johnson listens during a meeting with Australian Prime Minister Anthony Albanese (not pictured) on October 26, 2023, in Washington, D.C. A bill proposed on Monday to fund aid to Israel... Drew Angerer/Getty Images

Monday's bill raised several questions from Democrats, who accused Republicans of attempting to politicize a national security issue. Biden has requested a $106 billion emergency funding package from Congress that would include aid for both Israel and Ukraine. House Speaker Mike Johnson, however, has said that support for Ukraine's defense against Russia's invasion should be considered separately.

On Wednesday, Democratic lawmakers again dismissed the GOP's Israel funding bill amid the budget report, including Florida Congressman Jared Moskowitz, who quipped on X, formerly Twitter, in response to a post about the CBO's report, "Math and Calculators are so Woke."

"BREAKING: the CBO estimates House Republicans' 'offset' for Israel aid will add $12.5 billion to the deficit over the next decade," Democratic Virginia Senator Mark Warner posted to X. "Let's call this 'offset' what it is: a stupid idea. Let's pass aid without tanking revenue-generating funding."

When asked by Punchbowl News founder Jake Sherman about the report, Senate Majority Leader Chuck Schumer reportedly said, "What a joke."

"It's dead before it's even voted on," Schumer added, according to Sherman's report.

The House Rules Committee is expected to consider the aid bill on Wednesday.

Newsweek reached out to Johnson's office via email Wednesday for comment.

Speaking with Fox News earlier this week, Johnson defended the GOP's Israel aid bill as being more aligned with the wants of the average American voter than boosting the IRS budget. The White House has argued to increase the IRS's capacity as a way to cut down on instances of tax evasion.

"I understand their priority is to bulk up the IRS, but I think if you put this to the American people and they weigh the two needs, I think they're going to say standing with Israel and protecting the innocent over there is in our national interest and is a more immediate need than IRS agents," Johnson told Fox News.

Some Republican lawmakers, including Representatives Marjorie Taylor Greene and Thomas Massie, have said that they will vote against any measures to provide U.S. aid to Israel even if the bill comes as a standalone proposal.

"We have had over 10 MILLION people illegally cross our border since Biden took office and we are over $33 TRILLION dollars in debt with many major problems afflicting Americans," Greene wrote in a post to X on Sunday. "The United States government needs to focus on spending American's hard earned tax dollars on our own country and needs to serve the American people NOT the rest of the world."

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About the writer

Kaitlin Lewis is a Newsweek reporter on the Night Team based in Boston, Massachusetts. Her focus is reporting on national news and politics, where she has covered events such as the 2022 Midterm Election, live campaign rallies and candidate debates for Newsweek. She also covers court and crime stories. Kaitlin joined Newsweek in May 2022 as a Fellow before starting full time in September 2022. She graduated from the University of Dayton and previously worked as a breaking news intern at the Cincinnati Enquirer. You can get in touch with Kaitlin by emailing k.lewis@newsweek.com. Languages: English.


Kaitlin Lewis is a Newsweek reporter on the Night Team based in Boston, Massachusetts. Her focus is reporting on national ... Read more