In December, Congress made a major move that has Republicans cheering and Democrats biting their nails. As part of a stopgap spending bill signed into law by President Joe Biden, lawmakers rescinded a whopping $20 billion from the IRS—just one part of the ongoing tug-of-war over the agency’s budget.
This isn’t the first time the IRS has taken a hit. Back in 2022, the Biden administration allocated $80 billion to boost IRS enforcement and hire more agents. But Republicans have long argued that this extra funding could be used to unfairly target taxpayers and businesses. Since then, they’ve been chipping away at it, and this December’s cut is the latest victory.
So, what does this all mean? Well, the IRS will have less money to carry out its plans, including cutting back on audits of high-income earners and big corporations. The agency has already spent less than $7 billion of the extra funds it received, and now, with this new cut, they’re looking at fewer audits and less overall enforcement.
While some Democrats were uneasy about this, many still supported the bill, knowing that pushing more money into the IRS could be a political disaster. Republicans, on the other hand, are claiming a win—one they’ll keep pushing for in future spending bills.
In short, this fight over IRS funding is far from over, and it’s one both sides are sure to keep debating for years to come!
