MEMORANDUM: Cuts to IRS tax enforcement would increase the deficit

Republicans have, again, proposed defunding Internal Revenue Service (IRS) tax enforcement, hamstringing the agency’s ability to go after wealthy tax cheats and increasing the deficit.

In their Israel supplemental, House Republicans have called for “offsetting” $14.3 billion in emergency aid with cuts to the IRS.  A score from the nonpartisan Congressional Budget Office is forthcoming, but CBO has already scored Republicans’ attempted IRS clawbacks four times this year and found all would increase the deficit:

1. October 17, 2023 - CBO estimated that an appropriations amendment to cut $25 billion from the IRS would:
   1. Reduce revenues by $49 billion over ten years
   2. Increase the deficit on net by $24 billion over ten years

2. June 1, 2023 - CBO estimated that cutting $21.4 billion from the IRS as part of the Fiscal Responsibility Act would:
   1. Reduce revenues by $40.4 billion over ten years
   2. Increase the deficit on net by $19 billion over ten years

3. April 25, 2023 - CBO estimated that cutting $71.5 billion from the IRS as part of the Default on America Act would:
   1. Reduce revenues by $191 billion over ten years
   2. Increase the deficit on net by $120 billion over ten years

4. January 9, 2023 - CBO estimated that cutting $71.5 billion from the IRS as part of the first bill that the Republican-controlled House voted on would:
   1. Reduce revenues by $186 billion over ten years
   2. Increase the deficit on net by $114 billion over ten years

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