GOP majority starts with vote to cut IRS funding

WASHINGTON — House Republicans began their tenure in the majority Monday by passing a bill that would rescind nearly $71 billion that Congress had provided the IRS, fulfilling a campaign promise even though the legislation is unlikely to advance further.

Democrats had beefed up the IRS over the next decade to help offset the cost of top health and environmental priorities they passed last year and to replenish an agency struggling to provide basic services to taxpayers and ensure fairness in tax compliance.

The money is on top of what Congress provides the IRS annually through the appropriations process and immediately became a magnet for GOP campaign ads in the fall claiming that the boost would lead to an army of IRS agents harassing hard-working Americans.

The bill to rescind the money passed the House on a party-line vote of 221210. The Democratic-controlled Senate has vowed to ignore it.

Shortly before the vote, the nonpartisan Congressional Budget Office projected that rescinding the extra IRS funding would increase deficits over the coming decade by more than $114 billion. That created an awkward moment for Republicans, who have been saying that addressing deficits would be one of their top concerns in the majority. It offered an early example of how the GOP’S bold promises on the campaign trail could get tangled in the messy reality of governing.

Still, the CBO’S projection didn’t appear to dampen Republican support. Rep. Jeff Duncan, R-S.C., said the extra IRS funding Democrats provided last year was for one purpose.

“To go after small businesses, hard-working Americans to try to raise money for reckless spending, reckless spending that has caused $31 trillion in debt in this nation,” Duncan said.

Duncan and other GOP lawmakers routinely say the extra funding will be used to hire 87,000 new agents to target Americans, but that’s misleading. The number is based on a Treasury Department plan saying that many IRS employees would be hired over the next decade if it got the money. But those employees will not all be hired at the same time, they will not all be auditors and many will be replacing some 50,000 employees who are expected to quit or retire in coming years.

“This debate about IRS lends itself to be the most dishonest, demagogic rhetoric that I have seen in the Congress at any point in time,” said Rep. Steny Hoyer, D-MD.

Charles Rettig, the former commissioner of the IRS, said in a final message to the agency in November that the additional money would help in many areas, not just beefing up tax enforcement. He said the investments would make it “even less likely for honest taxpayers to hear from the IRS or receive an audit letter.”

Additional funding for the agency has been politically controversial since 2013, when the IRS under the Obama administration was found to have used inappropriate criteria to review tea party groups and other organizations applying for tax-exempt status.

In the ensuing years, the IRS was mostly on the losing end of congressional funding fights, even as a subsequent 2017 report found that both conservative and liberal groups were chosen for scrutiny.