The White House recently released a scathing statement in response to the latest economic legislation passed by House Republicans, which they argue will unfairly target honest and middle-class taxpayers. The bill, HR 23, would cut funding to the IRS that was set aside for last year’s Inflation Reduction Act.
In an attempt to “repeal the Democrats’ army of 87,000 IRS agents,” House Speaker Kevin McCarthy (R-Calif.) proposed a plan on Wednesday. Nevertheless, President Biden expressed his opposition and said he would veto this bill or any other legislation allowing wealthy Americans and large corporations to avoid paying taxes while hard working citizens are left footing the bill.
The Republicans allege that the funds would be utilized to recruit thousands of IRS agents to target middle-class and smaller businesses.
The House Ways and Means Committee stated on Monday that the bill “pulls back all new IRS funding for oppressing middle-class families and small businesses while improving services Americans expect from their government.”
Last year, Treasury Secretary Janet Yellen wrote a letter to the then IRS Commissioner Charles Rettig in response to House Republicans’ latest economic legislation. Her message was clear and concise: any new IRS personnel should not be used for increasing audit rates on taxpayers earning $400,000 or less per annum.
Contrary to what opponents of this bill might say, those making $400K/year or under would not experience a higher chance of being audited. Yellen declared in her very same letter that “small businesses or households earning 400k [dollars] per year…will not see an increase.”
This latest economic push by House Republicans could significantly impact the US economy, and it remains to be seen which bill President Biden will sign into law when all is said and done. Only time will tell how much of a difference this will make and if the Republicans’ plan to bring in additional IRS agents will positively or negatively affect the economy. Until then, stay tuned for more updates as this story continues to unfold.
Meanwhile, President Biden affirmed his commitment to reclaiming the hundreds of thousands of jobs lost due to China’s unfair trade practices. During a press conference, he stated: “It is my Administration’s sincere promise that, with support from both sides of the aisle and in partnership with the Communist Party, we will form an exclusive commission on restoring these long-lost jobs back home so that America can emerge victorious in this economic battle.”
It looks like the US is determined to come out ahead in the global economy no matter what, as both sides fight for their desired outcome. Until then, stay tuned to see what happens next on this economic front.
