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IRS funding cuts spark extended debate; committee preserves DACA hiring but declines pay/cola increases and other changes
Summary
Members sharply debated steep cuts to the Internal Revenue Service enforcement budget in the draft FSGG bill and the elimination of the IRS direct file pilot. Lawmakers warned cuts to enforcement could widen the tax gap; a separate amendment to restore IRS enforcement funding was offered and later withdrawn.
A sustained portion of the committee markup focused on funding for the Internal Revenue Service (IRS). Ranking members and other Democrats described large cuts to IRS enforcement and taxpayer services in the draft bill as likely to increase the tax gap and shift the burden to middle-income taxpayers. Rep. Steny Hoyer and others cited analyses suggesting each dollar invested in enforcement yields multiple…
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