06.01.23

IRS Cuts to Add $19 Billion to Deficit, CBO finds

Senator Whitehouse slams Republicans’ “fealty to megadonors”

Washington, D.C.—According to preliminary estimates by the nonpartisan Congressional Budget Office (CBO) provided to Senator Whitehouse (D-RI), Chairman of the Senate Budget Committee, Republicans’ $21.4 billion in cuts to the Internal Revenue Service will result in $40.4 billion in lost revenue, thus increasing the deficit by $19 billion. 

The IRS cuts analyzed by CBO include the $1.4 billion in clawbacks that are part of the so-called “Fiscal Responsibility Act” and the additional $20 billion of rescissions in the widely-reported “side-deals.” These cuts would help large corporations and the wealthy continue to get away without paying taxes they legally owe, by defunding the tax police.   

“After holding our entire economy hostage and threatening to trigger a global financial meltdown, Republicans protected wealthy tax cheats and creepy billionaires,” said Senator Whitehouse. “Republicans’ fealty to their megadonors is on full display, as is the hypocrisy of forcing cuts to the IRS that add $19 billion to the deficit.

“By contrast, President Biden’s budget would have cracked down on wealthy tax cheats while making pro-growth investments in workers, families, and small business—and reduced the deficit by $3 trillion. There’s a sharp contrast there, and the best explanation is Republican fealty to their dark-money megadonors.”