The Congressional Budget Office estimates that the first House bill, which would rescind the provision of the recently passed Inflation Reduction Act funding the addition of 87,000 new Internal Revenue Service Employees, will end up adding $114 billion to the deficit over the next 10 years.
While the legislation would cut the $71 billion to hire new workers for the IRS, the CBO estimates that it will end up adding $114 billion to the deficit between 2023-32 due to lost revenue gains.
“CBO estimates that the bill would decrease outlays by $71 billion and decrease receipts by $186 billion over the 2023-2032 period,” the office said. “Both of those effects are included in accordance with Guideline 14.”
The office’s report said Guideline 14 was “adopted in part to avert cases in which possible, but uncertain, receipts were used to offset near-term increases in spending resulting from the same bill. That guideline is asymmetrical, however. That is, even though increased receipts cannot be credited to a bill that would increase administrative funding, estimated receipt losses that might result from a decrease in such funding are included in the estimated budgetary effects.”
Newly elected House Speaker Rep. Kevin McCarthy, R-Calif., said rescinding the new IRS agent funding would be the first priority of the GOP majority in the House.
“On our very first bill, we’re going to repeal 87,000 IRS agents,” The Hill reported McCarthy saying after being elected speaker early Saturday morning. “Our job is to work for you, not go after you.”
White House Chief of Staff Ron Klain said on Twitter Monday that the move is actually a “tax cut” for the rich.
“It's a giant tax cut for rich tax cheats,” Klain’s tweet said. “Bill #1 from the new House GOP. Adds to the deficit.”
A White House statement Monday said President Joe Biden will veto the bill if it is passed by the House and Senate.
“This reckless bill would increase the deficit by nearly $115 billion over 10 years per an estimate by the Congressional Budget Office by enabling wealthy tax cheats to engage in additional tax fraud and avoidance,” the statement said. "If the President were presented with H.R. 23 — or any other bill that enables the wealthiest Americans and largest corporations to cheat on their taxes, while honest and hard-working Americans are left to pay the tab — he would veto it."
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