WASHINGTON – As Congress debates government funding through a continuing resolution (CR), Republicans are using this opportunity to make major cuts to the Internal Revenue Service (IRS). Republicans proudly boasted of blocking $20 billion from the IRS budget, until at least the next funding bill is introduced, prompting a major hit to enforcement and modernization efforts underway today. 

“Even before the new Administration takes office, we are seeing Republicans take steps to hamstring the IRS to ensure the ultra-wealthy can continue to evade their taxes,” said Anna Aurilio, Senior Director of Campaigns with Economic Security Project Action. “A well-funded IRS is vital to administering a fair tax code. Slashing funding for the agency, which recently collected nearly $5 billion from wealthy tax evaders and crime rings, only hurts the efficiency and efficacy of the government. It is the same old politics the American people have come to expect and are sick of watching. By starving the agency that helps deliver vital tax credits to the American people, Congress will make it more difficult for people to file their taxes and get the credits they qualify for – all while making it easier for the wealthiest individuals and big businesses to avoid paying their fair share.” 

According to the Institute on Taxation and Economic Policy, if this proposal remains in the FY25 spending bill through the end of the year, the $20 billion cut in funding would increase the deficit by $46 billion by limiting the agency’s capacity, ultimately making the IRS less effective.

If you would like to speak with Anna Aurilio or other leaders from Economic Security Project Action about the implications of funding the IRS,  please contact [email protected].