IRS Chief: $14.3B Israel Aid Offset = $90B Cost: Report
The House GOP’s Costly Plan to Offset Aid for Israel
The House GOP’s plan to offset billions of dollars in aid for Israel by cutting funds to the Internal Revenue Service (IRS) is facing criticism from the head of the agency. The proposal, backed by House Speaker Mike Johnson (R-LA), would provide $14.3 billion to Israel while rescinding the same amount from the IRS.
“The offset would cost $90 billion,” said IRS Commissioner Daniel Werfel. He explained that these funds are crucial for increased scrutiny on tax evasion at the highest wealth levels, and cutting them would mean “leaving money on the table.”
This critique aligns with the concerns raised by Democrats in Congress, who oppose further cuts to the IRS budget. President Joe Biden had recently secured $80 billion to strengthen and modernize the agency, with a focus on enforcement against wealthy tax evaders. However, a significant portion of this funding was clawed back as part of a debt ceiling deal.
Senate Majority Leader Chuck Schumer (D-NY) expressed his concerns about the House GOP plan, stating that it lacks funds for Ukraine, humanitarian assistance for Gaza, and the Indo-Pacific. He also criticized the inclusion of “poison pills” that benefit wealthy tax cheats and increase the deficit.
Despite the criticism, Speaker Mike Johnson hopes for bipartisan support for the plan, acknowledging that it is a “first draft.” He emphasized that the United States cannot simply print money and send it overseas, and that standing with Israel and protecting the innocent is a more immediate national interest than funding the IRS.
The plan has received support from conservatives, including former House Speaker Newt Gingrich, who praised Johnson’s decision to focus on aid for Israel and offset it with spending cuts to address the deficit and inflation.
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President Joe Biden has requested Congress to approve approximately $106 billion in national security-related funds, including $14.3 billion for Israel and $61.4 billion for Ukraine. These funds would also support Taiwan, the Indo-Pacific, humanitarian assistance, and border security. Secretary of State Antony Blinken and Defense Secretary Loyd Austin testified before a Senate committee regarding this request.
At the White House, National Security Council spokesman John Kirby emphasized the intertwined nature of the threats faced by Israel and Ukraine. Senate Minority Leader Mitch McConnell similarly stressed the importance of not ignoring these threats and rallying behind allies.
House Democrats have requested an analysis from the Congressional Budget Office (CBO) on the GOP proposal. The Republican measure had a provision that sought to bypass a CBO score, according to Punchbowl News co-founder Jake Sherman.
What are the ethical considerations of undermining the IRS’s ability to enforce tax laws in order to provide aid to Israel
Larger budget compromise in order to secure bipartisan support for the aid package to Israel.
Critics argue that diverting funds from the IRS to provide aid to Israel is not only shortsighted but also counterproductive. The IRS plays a crucial role in ensuring that tax laws are enforced and that tax evaders face consequences for their actions. By cutting funds to the agency, there will be a significant impact on its ability to carry out its mission effectively.
Furthermore, the offset proposed by the House GOP raises questions about priorities and values. While aid to Israel is undoubtedly important, it should not come at the expense of critical domestic needs such as tax enforcement. The IRS is responsible for collecting the funds that enable the government to function and provide essential services to its citizens. Cutting funds to the IRS will inevitably have far-reaching consequences for the American people.
In addition to the practical implications, there are also ethical considerations at play. The IRS is primarily responsible for ensuring that everyone pays their fair share of taxes. By undermining its ability to enforce tax laws, the proposal sends a message that some individuals or entities are exempt from their obligations. This not only erodes trust in the tax system but also perpetuates inequality and unfairness.
It is essential to recognize that supporting Israel is not in opposition to supporting domestic priorities. The United States has long been committed to providing aid and support to Israel, and this commitment should continue. However, it is crucial to find alternative means of financing this aid without sacrificing the resources needed for other important purposes.
In conclusion, the House GOP’s plan to offset aid for Israel by cutting funds to the IRS is a costly and misguided approach. It undermines the crucial work of the IRS and compromises the integrity of the tax system. Rather than pitting international aid against domestic priorities, policymakers should seek solutions that allow for both to be adequately funded. It is possible to support Israel without sacrificing resources needed for essential domestic needs and ensuring a fair and just tax system.
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